Booking Holdings (Formerly Priceline Group) is a provider of online travel and travel related reservation and search services. The Company, through its online travel agent services, connects consumers wishing to make travel reservations with providers of travel services across the world. The company was founded in 1997 and is based in Norwalk, Connecticut.
BKNG Price Forecast Based on DCF Valuation
DCF Fair Value Target:
The table below illustrates the output of a discounted cash flow forecast using a variety of scenarios for Booking Holdings Inc. To summarize, we found that Booking Holdings Inc ranked in the 19th percentile in terms of potential gain offered. Our DCF analysis suggests the stock is overvalued by about 74.5%. As for the metrics that stood out in our discounted cash flow analysis of Booking Holdings Inc, consider:
Its compound free cash flow growth rate, as measured over the past 5.47 years, is -0.03% -- higher than just 21.11% of stocks in our DCF forecasting set.
The company has produced more trailing twelve month cash flow than 93.14% of its sector Industrials.
BKNG's estimated cost of debt, based largely on its market capitalization and its interest coverage ratio, is 2%; for context, that number is higher than 26.53% of tickers in our DCF set.
Terminal Growth Rate in Free Cash Flow
Return Relative to Current Share Price
PNR, JCI, MWA, TRS, and ABB can be thought of as valuation peers to BKNG, in the sense that they are in the Industrials sector and have a similar price forecast based on DCF valuation.
Booking Holdings (BKNG) and Sabre (SABR) are two leading companies in the travel reservation industry. Booking focuses more on consumer buying as the top third-party vacation/destination/hotel/airline/cruise/car rental marketer and online technology reservation company through its Booking.com and priceline.com websites. Sabre, a spin-off of American Airlines (AAL) in 1999, mainly works...
Summary List Placement The travel industry has been battered by the coronavirus pandemic. Even as stay-at-home orders are lifted, travel activity remains at depressed levels with people continuing to worry about safety and opting to stay put. In August, Booking Holdings — which owns Kayak, Booking.com, Priceline, Rentalcars.com, OpenTable, and Agoda — reported that gross bookings fell by 91% in the second quarter. Revenue additionally fell 84% from the same period last year to $630 million. Glenn Fogel, the company's CEO, has worked at Booking Holdings in various capacities for almost 21 years. In a recent interview with Business Insider , he said looking at how travel fared after the terrorist attacks of September 11, 2001 is "a good analogy for today." "Each crisis, when you're in the...
The IPO market has been extremely hot lately as the recent run-up in the stock prices (read tech) has inspired every other company to cash in on the bonanza. Plus, when every other investment guru tells you that if you’d invested $10,000 in Amazon (AMZN) at its IPO, it would...
The Long-winded on Seeking Alpha | September 14, 2020
On CNBC's "Fast Money Halftime Report," Brenda Vingiello said Booking Holdings Inc (NASDAQ: BKNG ) is well positioned to benefit from, what she feels, is going to be … Full story available on Benzinga.com
Joe Terranova said on CNBC's "Fast Money Halftime Report" said he owns Seattle Genetics, Inc. (NASDAQ: SGEN ) and he suggested to others to buy it as well. He likes it because of its strong fundamentals. Stephanie Link owns Twitter … Full story available on Benzinga.com