Booking Holdings Valuation

Q: What is the Fair Price of BKNG34 when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

BKNG34 (R$170.77) is trading below our estimate of [[fair value]] (R$180.92)

Is BKNG34 undervalued compared to its fair value, analyst forecasts and its price relative to the market?

Valuation Score

3/6

Valuation Score 3/6

Below Fair Value
Significantly Below Fair Value
Price-To-Earnings vs Peers
Price-To-Earnings vs Industry
Price-To-Earnings vs Fair Ratio
Analyst Forecast

Share Price vs Fair Value

What is the Fair Price of BKNG34 when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: BKNG34 (R$170.77) is trading below our estimate of fair value (R$180.92)

Significantly Below Fair Value: BKNG34 is trading below fair value, but not by a significant amount.

Key Valuation Metric

Which metric is best to use when looking at relative valuation for BKNG34?

Key metric: As BKNG34 is profitable we use its Price-To-Earnings Ratio for relative valuation analysis.

The above table shows the Price to Earnings ratio for BKNG34. This is calculated by dividing BKNG34's market cap by their current earnings.
What is BKNG34's PE Ratio?
PE Ratio	34x
Earnings	US$5.04b
Market Cap	US$171.35b

BKNG34 key valuation metrics and ratios. From Price to Earnings, Price to Sales and Price to Book to Price to Earnings Growth Ratio, Enterprise Value and EBITDA.
Key Statistics
Enterprise Value/Revenue	7.5x
Enterprise Value/EBITDA	24x
PEG Ratio	2.4x

Price to Earnings Ratio vs Peers

How does BKNG34's PE Ratio compare to its peers?

The above table shows the PE ratio for BKNG34 vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
Company	Forward PE	Estimated Growth	Market Cap
Peer Average	36.5x
ABNB Airbnb	46.7x	17.9%	US$85.8b
MAR Marriott International	28.5x	8.4%	US$79.0b
HLT Hilton Worldwide Holdings	52.4x	17.6%	US$61.7b
TCOM Trip.com Group	18.5x	9.0%	US$41.4b
BKNG34 Booking Holdings	34x	14.1%	R$171.3b

Price-To-Earnings vs Peers: BKNG34 is good value based on its Price-To-Earnings Ratio (34x) compared to the peer average (36.5x).

Price to Earnings Ratio vs Industry

How does BKNG34's PE Ratio compare vs other companies in the South American Hospitality Industry?

3 Companies	Price / Earnings	Estimated Growth	Market Cap

3 Companies		Estimated Growth	Market Cap

No more companies

Price-To-Earnings vs Industry: BKNG34 is expensive based on its Price-To-Earnings Ratio (34x) compared to the South American Hospitality industry average (17.1x).

Price to Earnings Ratio vs Fair Ratio

What is BKNG34's PE Ratio compared to its Fair PE Ratio? This is the expected PE Ratio taking into account the company's forecast earnings growth, profit margins and other risk factors.

BKNG34 PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio	34x
Fair PE Ratio	50.9x

Price-To-Earnings vs Fair Ratio: BKNG34 is good value based on its Price-To-Earnings Ratio (34x) compared to the estimated Fair Price-To-Earnings Ratio (50.9x).

Analyst Price Targets

What is the analyst 12-month forecast and do we have any statistical confidence in the consensus price target?

Analyst Forecast: Insufficient data to show price forecast.