Why Booking Holdings Shares Plunged 7 8% Today

Booking stock

As per S&P Capital IQ data, the market currently values BKNG at consensus forward next twelve months’ EV/EBITDA and Enterprise Value-to-Revenue multiples of 14.7 times and 5.7 times, respectively. The stock’s five-year average forward EV/EBITDA and Enterprise Value-to-Revenue multiples are relatively higher at 16.2 times and 6.3 https://dotbig.com/markets/stocks/BKNG/ times, respectively. As Booking grows its revenue and expands its profit margins as per market expectations by 2025, the stock should benefit from multiple expansion and trade at the higher end of its historical valuations. Still, travel restrictions and economic risks seem to be the real factors driving the stock lower now.

  • When you start getting paid 26% on your money, your financial problems tend to pretty much evaporate.
  • EBITDA, as the acronym depicts, is earnings before interest, taxes, depreciation and amortization.
  • The ever popular one-page Snapshot reports are generated for virtually every single Zacks Ranked stock.
  • A ratio of 1 means a company’s assets are equal to its liabilities.
  • In many ways, Booking Holdings is the ultimate post-Covid reopening trade considering travel between flight tickets and hotel accommodations were one of the hardest areas of economic activity during the pandemic.
  • This allows the investor to be as broad or as specific as they want to be when selecting stocks.

ESG scores also evaluate any incidences of controversy that a company has been involved in. Booking scored a 2 out of 5 for controversy https://www.huntington.com/ – the second-highest score possible, reflecting that Booking has, for the most part, managed to keep its nose clean.

Zacks Research

The P/E ratio of Booking is 168.03, which means that it is trading at a more expensive P/E ratio than the market average P/E ratio of about 10.11. Global travel platform Agoda, today announced its partnership with Visa, the world leader in digital payments, to offer interest-free credit card instalments across its booking platform. Agoda will be the first global Online Travel Agency https://dotbig.com/markets/stocks/BKNG/ to offer this payment option with Visa in the Asia Pacific region. Webinar Yahoo Finance Plus presents ‘Investing in the new high-inflation, slowing-growth paradigm’ Analyst Callie Cox joins Jared Blikre to help investors find opportunities in a tough market on Wed, May 18 at 2pm ET. The 20 Day Average Volume is the average daily trading volume over the last 20 trading days.

Valuing DotBig is incredibly difficult, and any metric has to be viewed as part of a bigger picture of Booking’s overall performance. However, analysts commonly use some key metrics to help gauge the value of a stock. Buy your desired number of shares with a market order or use a limit order to delay your purchase until the stock reaches a desired price. Provide specific products and services to you, such as portfolio management or data aggregation. Several funds see value in industrials and financial services; Berkshire Hathaway sells airlines stock. © 2022 Market data provided is at least 10-minutes delayed and hosted by Barchart Solutions.

5 Company Ownership

The EBITDA is a measure of a Booking’s overall financial performance and is widely used to measure a its profitability. 500+ commission-free ETFs, some of the industry’s lowest fees plus a cash bonus up to $3,000. Dow Jones Industrial Average, S&P 500, Nasdaq, and Morningstar Index quotes are real-time. To further protect the integrity of our editorial content, we keep a strict separation between our sales teams and authors to remove any pressure or influence on our analyses and research. We think the firm offers investors a powerful network advantage, which is the source of narrow moats for peers Booking Holdings and Expedia.

Booking stock

28 Wall Street analysts have issued "buy," "hold," and "sell" ratings for Booking in the last twelve months. There are currently 7 hold ratings, 20 buy ratings and 1 strong buy rating for the stock. The consensus among Wall Street analysts is that investors should "buy" BKNG stock forecast. Cash is vital to a company in order to finance operations, invest in the business, pay expenses, etc. Since cash can’t be manipulated like earnings can, it’s a preferred metric for analysts.

Booking Holdings Bkng Q1 Earnings And Revenues Surpass Estimates

After the P/E ratio, it’s one of the most common valuation metrics. This ratio essentially compares the P/E to its growth rate, thus, for many, telling a more complete story than just the P/E ratio alone.

Booking Holdings Analyst Data

Booking’s governance score puts it squarely in the 8th percentile of companies rated in the same sector. That could suggest that Booking is a leader in its sector when it comes to responsible management and strategy, and exposed to a lower level of risk. Booking’s environmental score of 7.88 puts it squarely in https://dotbig.com/ the 8th percentile of companies rated in the same sector. This could suggest that Booking is a leader in its sector terms of its environmental impact, and exposed to a lower level of risk. That’s relatively high compared to, say, the trailing 12-month P/E ratio for the NASDAQ 100 at the end of 2019 (27.29).

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