BKNG Stock Overview
Booking Holdings Inc. provides travel and restaurant online reservation and related services worldwide.
Booking Holdings Competitors
Price History & Performance
|Historical stock prices|
|Current Share Price||US$1,669.88|
|52 Week High||US$2,715.66|
|52 Week Low||US$1,646.04|
|1 Month Change||-16.86%|
|3 Month Change||-13.53%|
|1 Year Change||-32.97%|
|3 Year Change||-14.11%|
|5 Year Change||-8.79%|
|Change since IPO||303.34%|
Recent News & Updates
Is Now An Opportune Moment To Examine Booking Holdings Inc. (NASDAQ:BKNG)?
Let's talk about the popular Booking Holdings Inc. ( NASDAQ:BKNG ). The company's shares received a lot of attention...
Booking Holdings: I Use Nothing Else
Summary Booking Holdings is the largest online travel agency focusing solely on hotels worldwide. It has a massive moat that others cannot easily copy. Booking's valuation is high. Compared to its peers in the OTA business, its valuation is among the highest. We might be a bit early going all in on Booking Holdings, but it should be on investors' radar. Booking Holdings Inc. (BKNG) is probably the only website or app I use to book my hotels. I'm a very frequent business traveler and frequent traveler. From time to time, I tried to book directly on the hotel's website to save a buck, but it wasted tons of my time, making it more complicated, and in the end, it wasn't worth it. Booking.com is the largest online travel agency focusing solely on hotels worldwide. It has a massive moat that others cannot easily copy. It's a fantastic business that works after the agency model. It's capital-light and scalable. Booking's valuation is high. Compared to its peers in the OTA business, its valuation is among the highest, even compared to the recent addition of Airbnb (ABNB). The high valuation could be justified as Booking.com is enjoying the fruits of its network effects in the hotel industry. After two years of lockdown, people want to travel and explore the world. With high inflation, the desire is muted, so that we might be a bit early going all in on Booking.com, but it should be on investors' radar. BKNG PS Ratio (Annual) data by YCharts The Hotel Business and Booking's Network Effect A competitive advantage of scale results from two interrelated topics. First, the size of the company's advantage relative to its competitors, and second, the type of advantage that results from the comparative advantage. When a user like me considers a hotel in a city, it's a complex decision that includes price, location, amenities, and ease of booking. The hotel industry is fragmented, and especially in Europe, Asia, Latin America, Africa, and the Middle East, there are not the same big players that my friends from the U.S. frequently use. The U.S. is concentrated around a few large hotel chains. When I fly to Croatia, Austria, or any other European or Asian country, my go-to platform is, by default, Booking.com. The product/service complexity on the demand side and the fixed-cost requirements on the supply side are strong moats. Evidence showed that more listings on a lodging service site like Booking.com attract more travelers and drive higher occupancy rates. This strengthens the demand side network effects for Booking.com further. In conclusion, Booking.com benefits from its global brand and strong supply side networking effects. Every new listing increases the relative attractiveness of the business, which in turn attracts more users (like me), making successful competitive attacks unlikely. Investment Framework Like my article about Stanley Black & Decker (SWK), I'd like to rate Booking.com based on my investment framework. Definitely check out that article; it's a deep-value contrarian opportunity. Invest in companies with a track record Booking.com has a fantastic track record of growth and market expansion. It's a global brand and uses mainly an agency model for hotel bookings. It's capital-light and enjoys supply-side networking effects. BKNG data by YCharts Invest in businesses that operate in industries that are not prone to change quickly Booking.com operates a straightforward business model. It connects users with hotels. The demand-side complexity provides a moat against new competitors in the industry. A new competitor would need to operate globally as travelers rarely check their city for hotels. They want to travel somewhere else. So the risk of local competition, like in the case of Uber Technologies (UBER), is low. A new competitor would need to accumulate thousands of offerings on a global scale. Booking Holdings Inc.'s platform is simple and provides all the necessary features users, like me, need. Booking.com's services are essential for travelers within the fragmented hotel industry. Each user has a unique demand for a hotel. Some want a great view, others a hotel with a kitchen and others are on a tight budget. Paying through Booking's platform provides security for the user and accountability for the hotels. The latest disruption to the industry was Airbnb. Airbnb added a whole new layer of offerings to the platform - the sharing industry. Booking.com is slowly making it easier for private offerings to enter the platform. Apart from that, the industry is simple and doesn't change rapidly. Buy companies under distress in industries under distress Even though Booking.com had some tough quarters during the pandemic's beginning, its capital-light operating model allowed it to go through those times with bravado. It's not under distress compared to, for example, Stanley Black and Decker. Still, it's a tough environment due to higher energy prices, inflation, and consumers' focus on necessities instead of luxury travel. The travel industry has a murky outlook due to rising energy prices and inflation per se. Buy businesses that have a durable competitive advantage or moat We discussed this topic at the beginning of this article. Booking Holdings Inc. has a wide and strong moat due to networking effects on the supply-side and demand complexity on the demand side. Buy businesses at a discount to their intrinsic value This one is tricky because Booking Holdings Inc. is not trading at low valuations. The market knows it's a fantastic business that keeps its valuation high. Booking.com Historical Valuation Fastgraphs (fastgraphs) Since its pre-pandemic high of $2171 with a price to operating cash flow ratio of 22.39, Booking Holdings Inc. dropped to $1910 and a P/OFC ratio of 17.83. The short-term outlook is murky, which makes it hard for the market to evaluate the price. Over the long term, Booking.com has all the requirements for steady growth and is currently trading at the lower valuation range. Buy businesses with low risk and high uncertainty Booking Holdings Inc. operates as OTA in the hospitality industry. While the hospitality industry can be risky, Booking.com has the privilege of operating as an agent for hotels. That means that it operates capital-light and is worldwide scalable.
|BKNG||US Hospitality||US Market|
Return vs Industry: BKNG matched the US Hospitality industry which returned -33.9% over the past year.
Return vs Market: BKNG underperformed the US Market which returned -23.1% over the past year.
|BKNG Average Weekly Movement||5.5%|
|Hospitality Industry Average Movement||7.1%|
|Market Average Movement||6.9%|
|10% most volatile stocks in US Market||15.9%|
|10% least volatile stocks in US Market||2.8%|
Stable Share Price: BKNG is not significantly more volatile than the rest of US stocks over the past 3 months, typically moving +/- 5% a week.
Volatility Over Time: BKNG's weekly volatility (5%) has been stable over the past year.
About the Company
Booking Holdings Inc. provides travel and restaurant online reservation and related services worldwide. The company operates Booking.com, which offers online accommodation reservations; Rentalcars.com that provides online rental car reservation services; Priceline, which offer online travel reservation services, and consumers hotel, flight, and rental car reservation services, as well as vacation packages, cruises, and hotel distribution services. It also operates Agoda that provides online accommodation reservation services, as well as flight, ground transportation and activities reservation services.
Booking Holdings Fundamentals Summary
|BKNG fundamental statistics|
Is BKNG overvalued?See Fair Value and valuation analysis
Earnings & Revenue
|BKNG income statement (TTM)|
|Cost of Revenue||US$2.31b|
Last Reported Earnings
Jun 30, 2022
Next Earnings Date
|Earnings per share (EPS)||38.89|
|Net Profit Margin||10.54%|
How did BKNG perform over the long term?See historical performance and comparison
Is BKNG undervalued compared to its fair value, analyst forecasts and its price relative to the market?
Valuation Score 4/6
Price-To-Earnings vs Peers
Price-To-Earnings vs Industry
Price-To-Earnings vs Fair Ratio
Below Fair Value
Significantly Below Fair Value
Key Valuation Metric
Which metric is best to use when looking at relative valuation for BKNG?
Other financial metrics that can be useful for relative valuation.
|What is BKNG's n/a Ratio?|
Price to Earnings Ratio vs Peers
How does BKNG's PE Ratio compare to its peers?
|BKNG PE Ratio vs Peers|
|Company||PE||Estimated Growth||Market Cap|
MAR Marriott International
HLT Hilton Worldwide Holdings
EXPE Expedia Group
BKNG Booking Holdings
Price-To-Earnings vs Peers: BKNG is expensive based on its Price-To-Earnings Ratio (42.9x) compared to the peer average (38.7x).
Price to Earnings Ratio vs Industry
How does BKNG's PE Ratio compare vs other companies in the US Hospitality Industry?
Price-To-Earnings vs Industry: BKNG is expensive based on its Price-To-Earnings Ratio (42.9x) compared to the US Hospitality industry average (16.6x)
Price to Earnings Ratio vs Fair Ratio
What is BKNG'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.
|Current PE Ratio||42.9x|
|Fair PE Ratio||49.8x|
Price-To-Earnings vs Fair Ratio: BKNG is good value based on its Price-To-Earnings Ratio (42.9x) compared to the estimated Fair Price-To-Earnings Ratio (49.8x).
Share Price vs Fair Value
What is the Fair Price of BKNG when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.
Below Fair Value: BKNG ($1669.88) is trading below our estimate of fair value ($5031.43)
Significantly Below Fair Value: BKNG is trading below fair value by more than 20%.
Analyst Price Targets
What is the analyst 12-month forecast and do we have any statistical confidence in the consensus price target?
Analyst Forecast: Target price is more than 20% higher than the current share price and analysts are within a statistically confident range of agreement.
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How is Booking Holdings forecast to perform in the next 1 to 3 years based on estimates from 31 analysts?
Future Growth Score5/6
Future Growth Score 5/6
Earnings vs Savings Rate
Earnings vs Market
High Growth Earnings
Revenue vs Market
High Growth Revenue
Forecasted annual earnings growth
Earnings and Revenue Growth Forecasts
Analyst Future Growth Forecasts
Earnings vs Savings Rate: BKNG's forecast earnings growth (22.2% per year) is above the savings rate (1.9%).
Earnings vs Market: BKNG's earnings (22.2% per year) are forecast to grow faster than the US market (14.7% per year).
High Growth Earnings: BKNG's earnings are expected to grow significantly over the next 3 years.
Revenue vs Market: BKNG's revenue (11.3% per year) is forecast to grow faster than the US market (7.6% per year).
High Growth Revenue: BKNG's revenue (11.3% per year) is forecast to grow slower than 20% per year.
Earnings per Share Growth Forecasts
Future Return on Equity
Future ROE: BKNG's Return on Equity is forecast to be very high in 3 years time (82.4%).
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How has Booking Holdings performed over the past 5 years?
Past Performance Score3/6
Past Performance Score 3/6
Growing Profit Margin
Earnings vs Industry
Historical annual earnings growth
Earnings and Revenue History
Quality Earnings: BKNG has a large one-off loss of $1.8B impacting its June 30 2022 financial results.
Growing Profit Margin: BKNG's current net profit margins (10.5%) are higher than last year (5.8%).
Past Earnings Growth Analysis
Earnings Trend: BKNG's earnings have declined by 24.6% per year over the past 5 years.
Accelerating Growth: BKNG's earnings growth over the past year (272.9%) exceeds its 5-year average (-24.6% per year).
Earnings vs Industry: BKNG earnings growth over the past year (272.9%) exceeded the Hospitality industry 36.2%.
Return on Equity
High ROE: Whilst BKNG's Return on Equity (38.58%) is high, this metric is skewed due to their high level of debt.
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How is Booking Holdings's financial position?
Financial Health Score5/6
Financial Health Score 5/6
Short Term Liabilities
Long Term Liabilities
Financial Position Analysis
Short Term Liabilities: BKNG's short term assets ($14.9B) exceed its short term liabilities ($10.3B).
Long Term Liabilities: BKNG's short term assets ($14.9B) exceed its long term liabilities ($10.2B).
Debt to Equity History and Analysis
Debt Level: BKNG has more cash than its total debt.
Reducing Debt: BKNG's debt to equity ratio has increased from 73.2% to 236.7% over the past 5 years.
Debt Coverage: BKNG's debt is well covered by operating cash flow (66%).
Interest Coverage: BKNG's interest payments on its debt are well covered by EBIT (15.5x coverage).
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What is Booking Holdings's current dividend yield, its reliability and sustainability?
Dividend Score 0/6
Cash Flow Coverage
Forecast Dividend Yield
Dividend Yield vs Market
Notable Dividend: Unable to evaluate BKNG's dividend yield against the bottom 25% of dividend payers, as the company has not reported any recent payouts.
High Dividend: Unable to evaluate BKNG's dividend yield against the top 25% of dividend payers, as the company has not reported any recent payouts.
Stability and Growth of Payments
Stable Dividend: Insufficient data to determine if BKNG's dividends per share have been stable in the past.
Growing Dividend: Insufficient data to determine if BKNG's dividend payments have been increasing.
Earnings Payout to Shareholders
Earnings Coverage: Insufficient data to calculate payout ratio to determine if its dividend payments are covered by earnings.
Cash Payout to Shareholders
Cash Flow Coverage: Unable to calculate sustainability of dividends as BKNG has not reported any payouts.
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How experienced are the management team and are they aligned to shareholders interests?
Average management tenure
Glenn Fogel (60 yo)
Mr. Glenn D. Fogel has been Chief Executive Officer of Booking.com B.V. June 26, 2019. Mr. Fogel has been the Chief Executive Officer and President of Booking Holdings Inc. (fka The Priceline Group Inc.) s...
CEO Compensation Analysis
Compensation vs Market: Glenn's total compensation ($USD53.98M) is above average for companies of similar size in the US market ($USD13.05M).
Compensation vs Earnings: Glenn's compensation has increased by more than 20% in the past year.
Experienced Management: BKNG's management team is considered experienced (4.5 years average tenure).
Experienced Board: BKNG's board of directors are considered experienced (5.3 years average tenure).
Who are the major shareholders and have insiders been buying or selling?
Insider Trading Volume
Insider Buying: BKNG insiders have bought more shares than they have sold in the past 3 months.
Recent Insider Transactions
|01 Sep 22||BuyUS$1,803,651||Annox Capital||Company||1,000||US$1,803.73|
|29 Aug 22||BuyUS$956,183||Robert Mylod||Individual||500||US$1,912.37|
|08 Aug 22||BuyUS$967,220||Robert Mylod||Individual||500||US$1,934.44|
|27 May 22||SellUS$224,326||Paulo Pisano||Individual||100||US$2,243.26|
|20 May 22||SellUS$252,000||Paulo Pisano||Individual||120||US$2,100.00|
Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.
|Ownership||Name||Shares||Current Value||Change %||Portfolio %|
Booking Holdings Inc.'s employee growth, exchange listings and data sources
- Name: Booking Holdings Inc.
- Ticker: BKNG
- Exchange: NasdaqGS
- Founded: 1997
- Industry: Hotels, Resorts and Cruise Lines
- Sector: Consumer Services
- Implied Market Cap: US$66.305b
- Shares outstanding: 39.71m
- Website: https://www.bookingholdings.com
Number of Employees
- Booking Holdings Inc.
- 800 Connecticut Avenue
- United States
|Ticker||Exchange||Primary Security||Security Type||Country||Currency||Listed on|
|BKNG||NasdaqGS (Nasdaq Global Select)||Yes||Common Stock||US||USD||Mar 1999|
|PCE1||DB (Deutsche Boerse AG)||Yes||Common Stock||DE||EUR||Mar 1999|
|PCE1||XTRA (XETRA Trading Platform)||Yes||Common Stock||DE||EUR||Mar 1999|
|BKNG *||BMV (Bolsa Mexicana de Valores)||Yes||Common Stock||MX||MXN||Mar 1999|
|BKNG||SNSE (Santiago Stock Exchange)||Yes||Common Stock||CL||USD||Mar 1999|
|BKNG||SWX (SIX Swiss Exchange)||Yes||Common Stock||CH||CHF||Mar 1999|
|0W2Y||LSE (London Stock Exchange)||Yes||Common Stock||GB||USD||Mar 1999|
|PCLN||SWX (SIX Swiss Exchange)||Yes||Common Stock||CH||USD||Mar 1999|
|BOOK||WBAG (Wiener Boerse AG)||Yes||Common Stock||AT||EUR||Mar 1999|
|PCE1-U||ETLX (Eurotlx)||Yes||Common Stock||IT||EUR||Mar 1999|
|BKNG||BVL (Bolsa de Valores de Lima)||Yes||Common Stock||PE||USD||Mar 1999|
|BKNGCL||SNSE (Santiago Stock Exchange)||Yes||Common Stock||CL||CLP||Mar 1999|
|BKNG34||BOVESPA (Bolsa de Valores de Sao Paulo)||BDR EACH 175 REP 1 COM||BR||BRL||May 2019|
Company Analysis and Financial Data Status
|Data||Last Updated (UTC time)|
|Company Analysis||2022/09/24 00:00|
|End of Day Share Price||2022/09/23 00:00|
Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.