Booking Holdings Intrinsic Value Calculation – Booking Holdings’ Record-Breaking Gains Streak Ends After Nine Days
December 20, 2023
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Booking Holdings ($NASDAQ:BKNG), an American online travel company, had an impressive run of gains last week that sent its stock to a record high.
However, this nine-day streak of gains is expected to come to an end as market uncertainty brings volatility back into the market. Through a variety of subsidiaries, it offers services such as booking airfare, car rentals, cruises, and hotels. It is also the parent company of several well-known online travel sites, including Booking.com, Priceline.com, Agoda.com, Kayak.com, and Rentalcars.com. Thanks to its array of services and global presence, Booking Holdings has been one of the most successful companies in the online travel industry for many years. Its stock price has steadily risen over the past few months and reached a record high last week, leading to a likely nine-day run of gains. However, the recent uncertainty in the market has brought with it some volatility that is expected to bring an end to this streak.
Share Price
Booking Holdings, formerly known as The Priceline Group, ended its record-breaking nine-day gains streak on Monday. On the day, the company’s stock opened at $3483.9 but closed at $3470.5, a slight decline of 0.2% from the previous closing price of 3479.1. Live Quote…
About the Company
Income Snapshot
Below shows the total revenue, net income and net margin for Booking Holdings. More…
| Total Revenues | Net Income | Net Margin |
| 20.63k | 5.3k | 25.3% |
Cash Flow Snapshot
Below shows the cash from operations, investing and financing for Booking Holdings. More…
| Operations | Investing | Financing |
| 8.17k | 2.04k | -5.94k |
Balance Sheet Snapshot
Below shows the total assets, liabilities and book value per share for Booking Holdings. More…
| Total Assets | Total Liabilities | Book Value Per Share |
| 25.64k | 26.26k | -17.51 |
Key Ratios Snapshot
Some of the financial key ratios for Booking Holdings are shown below. More…
| 3Y Rev Growth | 3Y Operating Profit Growth | Operating Margin |
| 32.4% | 51.3% | 35.7% |
| FCF Margin | ROE | ROA |
| 38.0% | -712.8% | 17.9% |
Analysis – Booking Holdings Intrinsic Value Calculation
At GoodWhale, we have been analyzing the financials of BOOKING HOLDINGS for some time now. Our proprietary Valuation Line indicates that the intrinsic value of the BOOKING HOLDINGS share is around $4475.4. This is based on our comprehensive assessment of the company’s fundamentals. At the time of writing, the stock is trading at $3470.5, which signifies an undervalued situation of 22.5%. This implies that investors may be able to gain a good return on their investment if they buy now and wait for the stock to rise to its intrinsic value. As bookings Holdings is a well-established company with a solid business model and strong growth potential, we believe that this represents a good opportunity for investors to get a good return on their investments. More…
Peers
Booking Holdings Inc, Expedia Group Inc, Ezfly International Travel Agent Co Ltd, and Adventure Inc are all travel companies that compete for customers. They all offer different services, but they all aim to make booking travel easier and more convenient for customers.
– Expedia Group Inc ($NASDAQ:EXPE)
Expedia Group is an online travel company that owns and operates a portfolio of travel brands. Its brands include Expedia.com, Hotels.com, trivago, HomeAway, Orbitz, Travelocity, Wotif, lastminute.com.au, and eLong. The company offers a one-stop travel booking experience to its customers. It enables customers to compare prices and book travel services from a single platform.
– Ezfly International Travel Agent Co Ltd ($TPEX:2734)
Ezfly International Travel Agent Co Ltd is a travel company based in Taiwan. The company offers a variety of travel services, including flight tickets, hotel reservations, and tour packages. Ezfly International Travel Agent Co Ltd has a market cap of 912.87M as of 2022, a Return on Equity of -19.32%. The company has been negatively impacted by the COVID-19 pandemic, as travel restrictions have prevented customers from using its services. Ezfly International Travel Agent Co Ltd is working to adapt its business model in order to survive the pandemic and continue operating in the future.
– Adventure Inc ($TSE:6030)
Adventure Inc. is a publicly traded company with a market capitalization of $85.43 billion as of 2022. The company’s return on equity is 13.93%. Adventure Inc. operates in the adventure travel industry, providing travelers with unique and immersive experiences. The company has a strong focus on customer service and safety, and has been recognized as a leader in the industry. Adventure Inc. offers a variety of travel products and services, including adventure tours, safaris, and cruise vacations.
Summary
Booking Holdings, formerly known as the Priceline Group, is a global leader in online travel services. Last week, the company reached a record high after a nine-day gaining streak. Analysts suggest that the stock may be due for a slight correction as it has reached its maximum potential in the near term.
Long-term investors may benefit from increased dividends and further industry consolidation as the company looks to expand its presence in the travel sector. Investors should also take into account that Booking Holdings operates in a competitive market, so any potential upside could be offset by competitors or changing consumer habits.
