TripAdvisor operates as an online travel company. The company operates through two segments, Hotel and Other. Its travel research platform aggregates reviews and opinions about accommodations, destinations, activities and attractions, and restaurants that enable consumers to plan and book hotels, vacation rentals, flights, activities and attractions, and restaurants. The company was founded in 2000 and is based in Newton, Massachusetts.
TRIP 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 TripAdvisor Inc. To summarize, we found that TripAdvisor Inc ranked in the 42th percentile in terms of potential gain offered. More precisely, our analysis suggests the stock is undervalued by approximately 4.5% on a DCF basis. In terms of the factors that were most noteworthy in this DCF analysis for TRIP, they are:
The compound growth rate in the free cash flow of TripAdvisor Inc over the past 5.57 years is -0.03%; that's higher than only 23.49% of free cash flow generating stocks in the Industrials sector.
The business' balance sheet reveals debt to be 0% of the company's capital (with equity being the remaining amount). Approximately merely 0% of US stocks with free cash flow have a lower reliance on debt in their capital structure.
TRIP'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 68.34% of tickers in our DCF set.
Terminal Growth Rate in Free Cash Flow
Return Relative to Current Share Price
For other companies in the Industrials that have a similar discounted cashflow valuation profile (and ensuing price forecasts) as TRIP, try OESX, FCN, MSM, NSC, and TPC.