A Fresh Look at Booking Holdings (BKNG) Valuation Ahead of Next Earnings Release

Booking Holdings (BKNG) is drawing attention from investors ahead of its upcoming third quarter 2025 earnings release and conference call. The company’s strong track record of outperforming expectations has people watching closely.

See our latest analysis for Booking Holdings.

Momentum has been gradually building for Booking Holdings, with a 1-year total shareholder return of 30.3% reflecting investors’ optimism after the company repeatedly beat earnings and revenue expectations. While the share price is now at $5,418.05, recent news and upcoming earnings keep attention focused on whether its growth trajectory can continue.

If Booking’s performance has you thinking about what else is out there, this could be a great moment to discover fast growing stocks with high insider ownership

But with shares trading near their all-time highs and only a modest discount to analyst price targets, investors are left asking if Booking Holdings is undervalued or if the market has already priced in further growth.

Most Popular Narrative: 11.2% Undervalued

Booking Holdings’ most widely followed narrative puts fair value at $6,100 using an 8.7% discount rate, which is about 11% above the last close of $5,418.05. Expectations for bigger profits and improved margins are fueling the optimism, but the narrative’s specifics are where things get especially interesting.

Booking Holdings is incorporating AI technology across its platforms to improve operations, streamline traveler experiences, and enhance supplier partnerships. This is expected to drive future revenue growth and margin improvement. The company's focus on increasing alternative accommodations and expanding its Genius loyalty program aims to strengthen customer retention and capture a broader market, potentially boosting revenue and net margins.

Read the complete narrative.

Want to know what makes this narrative’s fair value so ambitious? The answer lies in how much profit growth and margin expansion analysts are banking on, with bold price assumptions that could surprise you. Don’t miss the details only found in the full narrative.

Result: Fair Value of $6,100 (UNDERVALUED)

Have a read of the narrative in full and understand what's behind the forecasts.

However, region-specific travel slowdowns and cautious consumer spending remain potential headwinds that could challenge Booking Holdings' current growth assumptions and valuation narrative.

Find out about the key risks to this Booking Holdings narrative.

Another View: Pricing Through Market Multiples

Looking at Booking Holdings through the lens of valuation ratios tells a different story. Its price-to-earnings ratio stands at 36.5x, much higher than both the US Hospitality industry average of 24.4x and its peer group’s 29.9x. Although this is below its fair ratio of 39.2x, the premium raises questions about potential valuation risk versus optimism. Could the market be pricing in too much future growth, or is there hidden value?

See what the numbers say about this price — find out in our valuation breakdown.

Build Your Own Booking Holdings Narrative

If you think there’s more to the story or want to dive deeper into the numbers yourself, you can easily build your own take in just a few minutes. Do it your way

A great starting point for your Booking Holdings research is our analysis highlighting 2 key rewards and 1 important warning sign that could impact your investment decision.

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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.

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