Trip.com Group (TCOM) Stock Could Be Undervalued On China Hotel Rules

Trip.com Group stock has delivered an 86.1% gain over the past 5 years, yet the broader valuation checks still suggest the shares lean cheap. Recent share price weakness in 2026 leaves investors weighing that longer term return against a high value score and mixed shorter term performance.

• Over 5 years, Trip.com Group is up 86.1%, which points to meaningful value creation for longer term holders despite recent setbacks.
• The 2025 Sustainability Report and the new US$100 million Tourism Innovation Fund can support expectations for long term growth, while recent regulatory action in China on how the group deals with independent hotels may affect perceived risk.
• Trip.com Group screens as undervalued across the broader checks, with 6 of 6 valuation tests pointing to a discount rather than a premium.

The issue now is whether the current share price of US$46.14 still offers enough upside for new capital, given both the recent drawdown and the strong 5 year return profile.

Find out why Trip.com Group's -21.5% return over the last year is lagging behind its peers.

Does Trip.com Group Look Undervalued on Earnings?

The P/E ratio is a natural fit for Trip.com Group because earnings are a key driver for how investors price online travel platforms. Right now the stock trades on a P/E of about 6.2x, which is well below the Hospitality industry average of roughly 23.2x and also below the broader peer average of about 22.1x.

On a more tailored view, the fair P/E for Trip.com Group is estimated at around 13.1x based on its profile. That is still more than double the current multiple, which points to a sizeable gap between what investors are currently willing to pay and what this framework suggests. Despite the recent regulatory action in China and the focus on sustainability and the new Tourism Innovation Fund, the market price still assigns a marked discount to the earnings of Trip.com Group compared with sector peers.

On the P/E multiple alone, Trip.com Group stock appears undervalued relative to both its fair ratio and the wider Hospitality industry.

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

The Trip.com Group Narrative: What Would Justify Today's Price?

Simply Wall St Narratives pick up where the Trip.com Group valuation puzzle leaves off. They explain which assumptions about Trip.com Group's future growth, margins and earnings would need to hold for the stock to be worth meaningfully more or less than today. Each one treats fair value as a thesis about how the business might develop that you can watch over time, rather than a single static number.

Community views on Trip.com Group are split between a meaningful discount story and a much more cautious read on the risk profile.

Bull case: 25% undervalued

"Ongoing investment in proprietary artificial intelligence, personalized recommendation engines, and integrated one-stop trip planning tools is driving higher user engagement, stronger repeat bookings, and better operating leverage..."

Read the full Bull Case to see why Trip.com Group could be undervalued

Bear case: roughly fairly valued

"Regulatory scrutiny of large platforms is increasing, including ongoing reviews and new train ticketing rules that already require changes to value added rail services..."

Read the full Bear Case to see why Trip.com Group could be overvalued

Do you think there's more to the story for Trip.com Group? Head over to our Community to see what others are saying!

The Bottom Line

Trip.com Group still screens as undervalued on market multiples, with a clear gap between its current P/E and the tailored fair ratio discussed above. The broader valuation checks are strong, which keeps the focus on why that discount exists rather than whether it is real. The crux for you as an investor is whether regulatory and operational risks in China remain a drag on sentiment or ease over time. The key question is whether the current discount reflects an opportunity for patient capital or a value trap if those risks persist.

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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