See our latest analysis for TUI.
TUI’s share price may have experienced a recent dip, but the bigger story is its solid long-term recovery. A 19% total shareholder return over the past twelve months points to renewed confidence among investors in the travel sector. While momentum has eased lately, the stock’s performance over the past year suggests growing optimism about its turnaround potential.
If the travel rebound has you thinking about what’s next, why not expand your search and discover fast growing stocks with high insider ownership
The big question now is whether TUI shares are undervalued with further upside to come, or if the market has already factored in the company’s future growth prospects, leaving little room for buyers to benefit. Is this a genuine buying opportunity, or is everything already reflected in the price?
Most Popular Narrative: 29.3% Undervalued
TUI’s most followed narrative sees the fair value at €10.81 per share, materially above the recent closing price of €7.64. The valuation is based on the company’s heavy digital investment and strategic repositioning, which are expected to drive both near-term efficiency and long-term demand.
*TUI is leveraging its vertical integration across airlines, hotels, cruises, and ground experiences, resulting in higher occupancy rates, increased daily rates, full cruise ship utilization, and cross-selling of high-margin, differentiated products. This integrated model positions TUI to drive earnings and margin improvements, especially as more of its portfolio shifts to exclusive and unique offerings.*
Want the inside story on how digital booking platforms and exclusive travel products are projected to overhaul TUI’s margins and earnings? Analysts are betting on a major transformation, but what financial formula justifies such a big jump in fair value? Find out which bold assumptions and hidden growth drivers power this upbeat outlook.
Result: Fair Value of €10.81 (UNDERVALUED)
Have a read of the narrative in full and understand what's behind the forecasts.
However, persistent competition from low-cost airlines and unpredictable travel demand could challenge TUI’s ability to deliver the anticipated growth and improvement in margins.
Find out about the key risks to this TUI narrative.
Build Your Own TUI Narrative
If these views don’t match your own or you’d rather crunch the numbers yourself, you can build your own story in just a few minutes using our platform, and discover insights your way. Do it your way.
A good starting point is our analysis highlighting 4 key rewards investors are optimistic about regarding TUI.
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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.
Valuation is complex, but we're here to simplify it.
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