We don’t expect to materially change our $132 fair value estimate for narrow-moat Airbnb after the company reported slightly better third-quarter results and guided its fourth-quarter sales in line with our forecast.
Airbnb’s network has reached critical-mass scale, supported by its leading booking share of the alternative accommodation market and ongoing expansion into experiences.
Booking and Expedia are investing in their U.S. alternative accommodation supply and awareness. Also, Google's continued emphasis on placing its paid ads and metasearch platform ahead of free organic search links could elevate marketing cost for Airbnb.
|
Metric
|
ABNB
|
BKNG
|
TRIP
|
|---|---|---|---|
Price/Earnings (Normalized) | 33.76 | 21.60 | 16.90 |
Price/Book Value | 9.46 | — | 3.04 |
Price/Sales | 9.37 | 5.73 | 1.48 |
Price/Cash Flow | 23.73 | 19.57 | 19.17 |
|
Metric
|
ABNB
|
BKNG
|
TRIP
|
|---|---|---|---|
Quick Ratio | 1.75 | 1.35 | 1.89 |
Current Ratio | 1.78 | 1.44 | 1.95 |
Interest Coverage | 130.29 | 7.72 | 1.77 |
|
Metric
|
ABNB
|
BKNG
|
TRIP
|
|---|---|---|---|
Return on Assets (Normalized) | 33.04% | 21.59% | 5.88% |
Return on Equity (Normalized) | 102.42% | 432.17% | 18.97% |
Return on Invested Capital (Normalized) | 68.38% | 37.87% | 8.94% |
|
Ticker
|
Name
|
Morningstar Rating for Stocks
|
Economic Moat
|
Market Cap
|
|---|---|---|---|---|
BKNG
| Booking Holdings Inc | Rnbkty | $110.2 Bil | |
AMADF
| Amadeus IT Group SA | Syh | $31.1 Bil | |
RCL
| Royal Caribbean Group | Nhj | $28.4 Bil | |
TCOM
| Trip.com Group Ltd ADR | Skfkv | $22.3 Bil | |
CCL
| Carnival Corp | Xtblg | $20.6 Bil | |
EXPE
| Expedia Group Inc | Jfqgwc | $19.3 Bil | |
NCLH
| Norwegian Cruise Line Holdings Ltd | Hmpq | $7.0 Bil | |
TRIP
| TripAdvisor Inc | Glqz | $2.5 Bil | |
SABR
| Sabre Corp | Dxnzz | $1.4 Bil |
:quality(80)/s3.amazonaws.com/arc-authors/morningstar/2535f698-1e23-4470-9858-dc4e82afe213.jpg)