Our Updated Viator and TheFork Valuation Points to TripAdvisor Shares Trading at Attractive Levels

With TripAdvisor providing new financial disclosures on its Viator experiences and TheFork dining brands this month (around 35% of sales combined), we have updated our discounted cash flow valuation of those segments to $28.50 per share from $26 in April. The lift is due to a stronger demand recovery, illustrated by Viator’s second-quarter sales improving to 137% of 2019’s level versus 127% in the first quarter, while TheFork’s revenue went to 103% of 2019’s level versus 93% in the first quarter. We estimate 24% average annual growth during the next decade, above our 21% forecast in February. Our long-term mid-20s EBITDA margin forecast is largely unchanged.