Booking Holdings Inc. provides online travel and restaurant reservation, and related services in the United States, the Netherlands, and internationally.
The last earnings update was 24 days ago.
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 try to start with analysts estimates of free cash flow, however if these are not available we use the most recent financial results. In the 1st stage we continue to grow the free cash flow over a 10 year period, with the growth rate trending towards the perpetual growth rate used in the 2nd stage. The 2nd stage assumes the company grows at a stable rate into perpetuity.
WBAG:BOOK DCF 1st Stage: Next 10 year cash flow forecast
The current share price of
is above its future cash flow value.
Often investors are willing to pay a
for a company that has a high dividend or the potential for future growth.
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 9.6% yearly, however this is not considered high growth (20% yearly).
Booking Holdings's revenue is expected to grow by 8.1% 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
6/6, 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 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 restaurant reservation, and related services in the United States, the Netherlands, and internationally. The company operates Booking.com, which provides online accommodation reservation services; and KAYAK, an online meta-search service allowing consumers to easily search and compare travel itineraries and prices, including airline ticket, accommodation, and rental car reservation information. It also offers hotel, rental car, airline ticket, and vacation package online reservation services under the priceline brand; and operates agoda, which provides online accommodation reservation services. In addition, the company operates Rentalcars.com that offers online rental car reservation services; and OpenTable, an online provider of restaurant reservation and information services to consumers and restaurant reservation management, as well as customer acquisition services to restaurants. Further, it offers travel insurance products. 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.
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