Trip.com Group (TCOM) Stock May Be Undervalued After A 48% Fall

Trip.com Group has had a rough stretch in 2026, with the share price sharply lower year to date even as the broader valuation checks currently lean on the cheap side. The stock’s recent slide raises a clear question for investors who follow Trip.com Group closely, because the market is pricing in a lot of pessimism while several valuation indicators suggest the business may be discounted.

• Year to date, Trip.com Group is down 47.6%, which signals that sentiment around the stock has weakened significantly.
• Trip.com Group’s long term value will likely hinge on how consistently it can convert its travel demand into cash flow. Any renewed pressure on travel activity or sustained cost inflation may drag on profitability and investor confidence.
• The broader checks lean cheap, with Trip.com Group screening as undervalued on multiple metrics and earning a value score of 6 out of 6 in recent analysis.

The stock’s next move may depend on whether this steep share price decline has already more than accounted for the risks facing Trip.com Group or whether the current discount still overstates the downside.

Capitalize on the reset in Trip.com Group by lining it up against other potentially mispriced opportunities in our curated list of 32 high quality undervalued stocks.

Is Trip.com Group Still Cheap on Earnings?

The P/E ratio is a useful shorthand here because Trip.com Group has positive earnings that can be compared directly with peers in the hospitality space. On this yardstick, the stock trades on about 5.2x earnings, which is well below the broader hospitality industry average of roughly 21.4x and also below peer companies that cluster around 18.1x.

A more tailored check that adjusts for Trip.com Group’s growth profile, margins, size and risk points to a fair P/E of about 13.6x. That is higher than the current 5.2x level, which indicates that the market is assigning a steep discount to the business relative to what this framework suggests might be reasonable for its earnings power.

On this P/E measure, Trip.com Group stock appears undervalued compared with both its fair multiple and sector benchmarks.

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?

Trip.com Group’s valuation gap sets up a natural question that Narratives try to answer for you, because they spell out which paths for growth, profitability and earnings would need to play out for the current share price to look clearly too low or too high. Each narrative links its number to a specific view on where Trip.com Group's revenue trajectory, margin profile and risk balance could head next, giving you a reference point you can revisit as fresh information comes in.

One of the top community narratives on Trip.com Group: 35% 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 one of the top narratives on Trip.com Group

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 screens as undervalued on earnings-based checks, with market multiples implying a discount to both tailored fair-value estimates and sector peers. That kind of gap only closes if investors gain more confidence that cash generation and profitability can hold up against any pressure on travel demand or costs. The key question is whether the current markdown is compensation for those risks or an overreaction that leaves mispricing on the table. Your view on the durability of Trip.com Group’s booking volumes and margin profile is what really decides the call from here.

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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