Tripadvisor Intrinsic Value – TripAdvisor’s Return Metrics Not Looking Promising
December 17, 2023
🌧️Trending News
TRIPADVISOR ($NASDAQ:TRIP): TripAdvisor’s return metrics have recently been released, and they don’t appear to be particularly promising. The stock price of the company has dropped significantly in the last few months, and the overall return on investment has been far lower than expected. This is a concerning trend for investors, and it is likely that the company will need to make some significant changes in order to recover. TripAdvisor is an online travel platform headquartered in Needham, Massachusetts. This makes TripAdvisor one of the most popular sites for travelers looking to find information about their destination before they embark on their journey.
However, the current financial situation of TripAdvisor does not appear to be promising. It is clear that TripAdvisor needs to make some changes in order to improve its return metrics. They must work to increase their customer base and offer more services that will attract more users to the platform.
Additionally, they must work to reduce their costs and increase efficiency to ensure that their return on investment is as high as possible. If TripAdvisor can make these changes, then they may be able to reverse their current financial situation and get back to profitability.
Market Price
On Monday, TRIPADVISOR‘s stock opened at $19.0 and closed at $19.2, a mere 0.5% increase from last closing price of 19.1. This slight uptick in price has failed to impress investors, with the return metrics for the company’s shares not looking particularly promising. This comes as a surprise considering the booming online travel industry, which has been a major source of growth for companies specializing in the sector. Moving forward, TRIPADVISOR will likely have to find ways to innovate and expand in order to remain competitive and attractive to investors. Live Quote…
About the Company
Income Snapshot
Below shows the total revenue, net income and net margin for Tripadvisor. More…
| Total Revenues | Net Income | Net Margin |
| 1.75k | -24 | -0.3% |
Cash Flow Snapshot
Below shows the cash from operations, investing and financing for Tripadvisor. More…
| Operations | Investing | Financing |
| 214 | -62 | -101 |
Balance Sheet Snapshot
Below shows the total assets, liabilities and book value per share for Tripadvisor. More…
| Total Assets | Total Liabilities | Book Value Per Share |
| 2.64k | 1.81k | 5.95 |
Key Ratios Snapshot
Some of the financial key ratios for Tripadvisor are shown below. More…
| 3Y Rev Growth | 3Y Operating Profit Growth | Operating Margin |
| 28.6% | -18.6% | 6.9% |
| FCF Margin | ROE | ROA |
| 8.7% | 9.4% | 2.9% |
Analysis – Tripadvisor Intrinsic Value
At GoodWhale, we believe in helping our clients make informed decisions and have conducted an analysis of TRIPADVISOR‘s fundamentals. After careful examination of the company’s financials and performance, we have determined that the fair value of its share is around $50.2. This calculation has been done using our proprietary Valuation Line. Currently, TRIPADVISOR shares are trading at only $19.2, meaning that the stock is deeply undervalued by 61.7%. Therefore, this presents a great opportunity for investors who are looking for a potential upside in their investments. More…
Peers
TripAdvisor, Inc. is an online travel research company that operates a global platform with user-generated reviews and other content, and a comparison shopping website. The company operates in 45 countries and is headquartered in Needham, Massachusetts. TripAdvisor was founded in 2000 by Stephen Kaufer, Langley Steinert, and Jason Freedman, and was acquired by IAC/InterActiveCorp in 2004. Expedia Group is an American online travel shopping company for consumer and business travel. Its websites, which are primarily travel fare aggregators and travel metasearch engines, include Expedia.com, Hotels.com, trivago, Travelocity, Orbitz, and HomeAway. Expedia Group is headquartered in Bellevue, Washington, and employs over 24,000 people globally. Sabre Corporation is a travel technology company based in Southlake, Texas. The company provides software and distribution solutions that enable airlines and other travel providers to manage operations, market, and sell products and services. Sabre also offers a suite of software solutions for travel agencies, corporations, and travelers. Booking Holdings Inc. is an online travel company that owns and operates a portfolio of travel brands, including Booking.com, KAYAK, agoda, Cheapflights, and Rentalcars.com. The company offers a variety of travel services, including hotel reservations, car rentals, and flights. Booking Holdings is headquartered in Norwalk, Connecticut, and employs over 17,000 people globally.
– Expedia Group Inc ($NASDAQ:EXPE)
Expedia Group Inc is a publicly traded company with a market capitalization of $16.04 billion as of 2022. The company’s return on equity is 33.72%. Expedia Group is a global online travel company that operates a number of travel-related brands, including Expedia, Hotels.com, trivago, and HomeAway. The company offers a wide variety of travel products and services, including flights, hotels, car rentals, cruises, and vacation packages. Expedia Group is headquartered in Bellevue, Washington.
– Sabre Corp ($NASDAQ:SABR)
Sabre Corporation is a travel technology company based in Southlake, Texas. The company provides software and services to airlines and travel agencies, including reservation, distribution, and e-commerce systems. Sabre also operates a global travel marketplace, which offers a range of travel products and services.
Sabre’s market cap is $1.8 billion as of 2022. The company has a return on equity of 18.38%. Sabre provides software and services to airlines and travel agencies, including reservation, distribution, and e-commerce systems. The company also operates a global travel marketplace, which offers a range of travel products and services.
– Booking Holdings Inc ($NASDAQ:BKNG)
Booking Holdings is a global leader in online travel and related services, with a mission to make it easy for everyone to experience the world. The company operates a portfolio of leading online travel brands, including Booking.com, KAYAK, Priceline, agoda, Rentalcars.com, and OpenTable. Booking Holdings offers a wide variety of travel services, including airline tickets, hotel rooms, rental cars, cruises, and vacation packages. The company serves consumers in more than 220 countries and territories. Booking Holdings is committed to providing a great customer experience and strives to make the booking process as simple and easy as possible.
Summary
TripAdvisor is a travel review and comparison website that provides a platform for visitors to review destinations, hotels, restaurants, and other attractions. The company’s analysis of investor data reveals that its stock performance has been inconsistent and volatile, and that it has not seen consistent growth or been able to maintain a high dividend yield. Additionally, its debt to equity ratio is high, suggesting that it has taken on significant debt to finance operations. This, combined with a weak return on equity, indicates that the company has yet to truly capitalize on its potential and generate returns for shareholders.
