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Airbnb Inc Ordinary Shares - Class A ABNB

Morningstar Rating
$144.47 +3.43 (2.43%)
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Company Report

Airbnb's Network Prowess Supported by Expansion Beyond Its Core Alternative Accommodations Business

We think that Airbnb's global online travel agency, or OTA, position will strengthen over the next decade, driven by a leading alternative accommodation network (source of its narrow moat) of over 5 million hosts and cumulative 1.5 billion guest arrivals since its start in 2008 through 2023. We think this network advantage will be supported by generative artificial intelligence investment and expansion into the experiences vertical and international markets over the next several years. Also, Airbnb is positioned to benefit from the ongoing shift to mobile bookings, witnessed by Airbnb being a top-10 iPhone travel app in 103 markets versus 25 for Expedia and 144 for Booking Holdings, according to App Annie on May 8, 2024. Further, we expect some durability in remote working to enhance long-term travel demand.

Price vs Fair Value

ABNB is trading within a range we consider fairly valued.
Price
$144.47
Fair Value
$745.00
Uncertainty
High
1-Star Price
$215.23
5-Star Price
$76.10
Economic Moat
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Capital Allocation
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Bulls Say, Bears Say

Bulls

Airbnb’s network has reached critical-mass scale, supported by its leading booking share of the alternative accommodation market and ongoing expansion into experiences.

Bears

Booking and Expedia are investing in their US 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.

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News

Trading Information

Previous Close Price
$141.04
Day Range
$142.30145.97
52-Week Range
$103.74170.10
Bid/Ask
$144.10 / $144.80
Market Cap
$91.72 Bil
Volume/Avg
4.5 Mil / 4.2 Mil

Key Statistics

Price/Earnings (Normalized)
30.66
Price/Sales
9.17
Dividend Yield (Trailing)
Dividend Yield (Forward)
Total Yield
2.74%

Company Profile

Started in 2008, Airbnb is the world’s largest online alternative accommodation travel agency, also offering booking services for boutique hotels and experiences. Airbnb’s platform offered 7.7 million active accommodation listings as of Dec. 31, 2023. Listings from the company’s over 5 million hosts are spread over almost every country in the world. In 2023, 50% of revenue was from the North American region. Transaction fees for online bookings account for all its revenue.
Sector
Consumer Cyclical
Industry
Travel Services
Stock Style Box
Large Growth
Total Number of Employees
6,907

Competitors

Valuation

Metric
ABNB
EXPE
BKNG
Price/Earnings (Normalized)
30.6610.8025.95
Price/Book Value
11.5116.58
Price/Sales
9.171.236.16
Price/Cash Flow
27.946.3121.78
Price/Earnings
ABNB
EXPE
BKNG

Financial Strength

Metric
ABNB
EXPE
BKNG
Quick Ratio
1.400.611.20
Current Ratio
1.440.791.28
Interest Coverage
3.885.97
Quick Ratio
ABNB
EXPE
BKNG

Profitability

Metric
ABNB
EXPE
BKNG
Return on Assets (Normalized)
28.58%6.25%22.51%
Return on Equity (Normalized)
85.50%97.20%
Return on Invested Capital (Normalized)
57.72%16.11%42.97%
Return on Assets
ABNB
EXPE
BKNG
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Travel Services Industry Comparables

Ticker
Name
Morningstar Rating for Stocks
Capital Allocation
Economic Moat
Market Cap
BKNG
Booking Holdings IncKvmhgxxmcKmcqvw$127.3 Bil
RCL
Royal Caribbean GroupRqpgmpwwYnfplf$37.9 Bil
TRPCF
Trip.com Group LtdWhmzl$34.7 Bil
TCOM
Trip.com Group Ltd ADRTnxqdpwlVjywfmg$34.7 Bil
CCL
Carnival CorpBmstvlnzBjjnty$19.8 Bil
EXPE
Expedia Group IncFvghqjwhQkjzf$14.8 Bil
VIK
Viking Holdings LtdShd$12.4 Bil
NCLH
Norwegian Cruise Line Holdings LtdTtbvlycnVjgpy$6.7 Bil
TRIP
Tripadvisor IncCywckkxQsz$2.6 Bil

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