Youdao, Inc. (DAO) intrinsic value & 10-year financials

Youdao, Inc. (DAO) has a Graham intrinsic value of $29.89 per share. Over the last 10 fiscal years revenue grew 37.8% a year to $5.9B, with an average return on invested capital of -5.6%.

Graham intrinsic value
$29.89
Revenue (FY2025)
$5.9B
Revenue growth (10-yr CAGR)
37.8%
ROIC (10-yr avg)
-5.6%
Free cash flow (FY2025)
$29.6M

DAO 10-year financial history

Fiscal year Revenue Net income EPS (diluted) Free cash flow Operating margin ROIC
FY2025 $5.9B $97.0M $0.90 $29.6M 3.7% -7.5%
FY2024 $5.6B $75.2M $0.70 -$79.7M 2.6% -5.3%
FY2023 $5.4B -$550.1M -$4.53 -$456.0M -8.7% 19.2%
FY2022 $5.0B -$745.9M -$5.88 -$671.8M -15.5% 46.4%
FY2021 $4.0B -$995.7M -$8.18 -$1.4B -23.5% 63.0%
FY2020 $3.2B -$1.8B -$15.53 -$358.4M -57.0% 202.0%
FY2019 $1.3B -$601.5M -$6.68 -$390.4M -46.1% -403.6%
FY2018 $731.6M -$208.9M -$2.80 -$114.0M -30.0% 20.9%
FY2017 $455.7M -$133.6M -$2.04 -$97.8M -28.5% 14.4%
FY2016 — — — — — —

Source: annual 10-K filings on SEC EDGAR. Figures in USD.

Executive summary

Youdao, Inc. revenue growth over the past decade is N/A; insufficient history prevents a reliable 10-year CAGR calculation.

Youdao, Inc. has earned high returns on invested capital, averaging 16.2% ROIC over the available history. High ROIC is consistent with a durable franchise, but it is not by itself proof of an economic moat.

Youdao, Inc. capital allocation metrics are N/A for the decade; share count and net debt history are incomplete.

Benjamin Graham lens

Under Benjamin Graham's formula using SEC EDGAR fundamentals, Youdao, Inc. is modeled at 15.0% normalized earnings growth with a 5.1% bond-yield adjustment. The resulting Graham intrinsic value estimate is $29.89 per share.

DAO stock: frequently asked questions

What is the intrinsic value of Youdao, Inc. (DAO) stock?

Using Benjamin Graham's revised formula, V = EPS × (8.5 + 2g) × 4.4 / Y, with reported diluted earnings per share, a 15.0% normalized growth rate (capped at 15%) and a 5.1% AAA corporate bond yield, DAO's intrinsic value is about $29.89 per share.

Does Youdao, Inc. generate free cash flow?

Youdao, Inc. generated $29.6M of free cash flow (operating cash flow minus capital expenditures) in fiscal 2025. Free cash flow was positive in 1 of the last 9 reported years.

What is DAO's return on invested capital?

Average ROIC over the last 10 fiscal years was -5.6%, and average return on equity was 74.4%. Sustained ROIC above about 15% usually points to a durable competitive advantage.

Where does this DAO data come from?

From Youdao, Inc.'s annual 10-K filings on SEC EDGAR, most recently filed Apr 15, 2026. Prices are end-of-day snapshots; valuations are formula outputs, not investment advice.

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