Discounted Cash Flow Calculation for WBAG:BOOK using 2 Stage Free Cash Flow to Equity Model
The calculations below outline how an intrinsic value for
is arrived at by discounting future cash flows to their present value using the 2 stage method. We use
analyst's estimates of cash flows going forward 5 years for the 1st stage, the 2nd stage assumes the company grows at a stable rate into perpetuity.
WBAG:BOOK DCF 1st Stage: Next 5 year cash flow forecast
Amount off the current price
is available for.
Share price is
vs Future cash flow value of
Current Discount Checks
to be considered undervalued it must be available for at least 20% below the
current price. Less than 40% is even better.
Booking Holdings's share price is below the future cash flow value, but not at a moderate discount (< 20%).
Booking Holdings's share price is below the future cash flow value, but not at a substantial discount (< 40%).
PRICE RELATIVE TO MARKET
We can also value a company based on what the stock market is willing to pay for
it. This is similar to the price of fruit (e.g. Mangoes or Avocados) increasing
when they are out of season, or how much your home is worth.
The amount the stock market is willing to pay for
is considered below, and whether this is a fair price.
Price based on past earnings
Booking Holdings's earnings available for a low price, and how does
this compare to other companies in the same industry?
Booking Holdings's earnings are expected to grow by 10.8% yearly, however this is not considered high growth (20% yearly).
Booking Holdings's revenue is expected to grow by 9.5% yearly, however this is not considered high growth (20% yearly).
Past and Future Earnings per Share
The accuracy of the analysts who estimate the future performance data can
be gauged below. We look back 3 years and see if they were any good at
predicting what actually occurred. We also show the highest and lowest estimates
looking forward to see if there is a wide range.
Booking Holdings's performance over the past 5 years by checking for:
Has earnings increased in past 5 years? (1 check)
Has the earnings growth in the last year exceeded that of the
industry? (1 check)
Is the recent earnings growth over the last year higher than the average annual growth over the
past 5 years? (1 check)
Is the Return on Equity (ROE) higher than 20%? (1 check)
Is the Return on Assets (ROA) above industry average? (1 check)
Has the Return on Capital Employed (ROCE) increased from 3 years ago? (1 check)
The above checks will fail if the company has reported a loss in the most recent
earnings report. Some checks require at least 3 or 5 years worth of data.
has a total score of
4/6, see the detailed checks below.
Note: We use GAAP Net Income excluding extraordinary items in all our calculations.
A company's financial position is much like your own financial position,
it includes everything you own
The boxes below represent the relative size of what makes up
Booking Holdings's finances.
The net worth of a company is the difference between its assets and liabilities.
Booking Holdings is able to meet its short term (1 year) commitments with its holdings of cash and other short term assets.
Booking Holdings's long term commitments exceed its cash and other short term assets.
This treemap shows a more detailed breakdown of
Booking Holdings's finances. If any of them are yellow this
indicates they may be out of proportion and red means they relate to one of the
Liabilities and shares
The 'shares' portion represents any funds contributed by the owners (shareholders) and any profits.
Low level of unsold assets.
Debt is covered by short term assets, assets are 1.1x debt.
Nearly all companies have debt. Debt in itself isn’t
however if the debt is too high, or the company can’t afford to pay the interest
on its debts this may have impacts in the future.
The graphic below shows equity (available funds) and debt, we ideally want to
see the red area (debt) decreasing.
If there is any debt we look at the companies capability to repay it, and
whether the level has increased over the past 5 years.
Management is one of the most important areas of a company. We look at
unreasonable CEO compensation, how long the team and board of directors have
been around for and insider trading.
TENURE AS CEO
Mr. Glenn D. Fogel has been the Chief Executive Officer and President of The Priceline Group Inc. (alternatively Booking Holdings Inc.) since January 1, 2017. Mr. Fogel served as Senior Vice President of International at Priceline.com. Mr. Fogel was the senior manager for London-based Priceline.co.uk. He served as International Managing Director and Head of Worldwide Strategy and Planning at Priceline.com Europe Limited. He served as the Head of Worldwide Strategy & Planning at The Priceline Group Inc. from November 2010 to December 2016 and served as its Executive Vice President of Corporate Development from March 1, 2009 to January 1, 2017. Mr. Fogel is responsible for all of The Priceline Group Inc.'s international activities, including strategy, product development, marketing and technology. He served as Member of Group Management Board since The Priceline Group Inc. He also serves as Senior Manager for London-based Priceline.co.uk. and. Mr. Fogel joined The Priceline Group Inc. in February 2000. He has been Director at The Priceline Group Inc. since January 1, 2017. He served as the Managing Director of Corporate Development and International and Senior Vice President of International at The Priceline Group Inc. Prior to joining The Priceline Group Inc., he served as an Investment Banker specializing in the air transportation industry. He serves as Director of Booking.com Limited. Mr. Fogel also is a member of the New York State Bar. He is a graduate of Harvard Law School and earned a Bachelor of Science in Economics degree from the University of Pennsylvania’s Wharton School.
Glenn's compensation has increased by more than 20% in the past year.
Insufficient data for Glenn to establish whether their remuneration is reasonable compared to companies of similar size in .
Management Team Tenure
Average tenure and age of the
management team in years:
The tenure for the Booking Holdings management team is about average.
Executive VP & General Counsel
President & CEO of Booking.Com
Executive VP & CFO
Senior VP & Corporate Controller
Chief Executive Officer of Priceline.Com
Chief Executive Officer of KAYAK + OpenTable
Chief Executive Officer of Rentalcars.com
Chief Executive Officer of Agoda
Board of Directors Tenure
Average tenure and age of the
board of directors in years:
The tenure for the Booking Holdings board of directors is about average.
Booking Holdings Inc. provides online travel and related services in the United States, the Netherlands, and internationally. It operates Booking.com, which provides online accommodation reservation services; offers hotel, rental car, and airline ticket reservation services, as well as vacation packages and cruises under the priceline.com brand through its Name Your Own Price and Express Deals travel services; and operates KAYAK, a meta-search service allowing consumers to easily search and compare travel itineraries and prices, including airline ticket, accommodation, and rental car reservation information. The company also operates agoda.com, which provides online accommodation reservation services; Rentalcars.com that offers rental car reservation services; and OpenTable that offers restaurant reservation and information services to consumers and restaurant reservation management, as well as customer acquisition services to restaurants. As of December 31, 2017, it operated in approximately 220 countries and territories. Booking Holdings Inc. has a strategic partnership with Grab Holdings Inc. The company was formerly known as The Priceline Group Inc. and changed its name to Booking Holdings Inc. in February 2018. Booking Holdings Inc. was founded in 1997 and is headquartered in Norwalk, Connecticut.
Simply Wall Street Pty Ltd (ACN 600 056 611), is a Corporate Authorised Representative (Authorised Representative Number: 467183) of Sanlam Private Wealth Pty Ltd (AFSL No. 337927). Any advice contained in this website is general advice only and has been prepared without considering your objectives, financial situation or needs. You should not rely on any advice and/or information contained in this website and before making any investment decision we recommend that you consider whether it is appropriate for your situation and seek appropriate financial, taxation and legal advice. Please read our Financial Services Guide before deciding whether to obtain financial services from us.