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Airbnb Inc Ordinary Shares - Class A ABNB

Morningstar Rating
$164.96 −1.45 (0.87%)
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Company Report

Airbnb's International and Noncore Business Expansion Plans Support Its Network Advantage

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 104 markets versus 28 for Expedia and 149 for Booking Holdings, according to App Annie on Feb. 17, 2024. Further, we expect some durability in remote working to enhance long-term travel demand.

Price vs Fair Value

ABNB is trading at a 23% premium.
Price
$167.99
Fair Value
$214.00
Uncertainty
High
1-Star Price
$392.89
5-Star Price
$15.80
Economic Moat
Qycbq
Capital Allocation
Ttgcvkc

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
$166.41
Day Range
$164.59167.38
52-Week Range
$103.55170.10
Bid/Ask
$164.30 / $164.80
Market Cap
$105.22 Bil
Volume/Avg
3.4 Mil / 4.9 Mil

Key Statistics

Price/Earnings (Normalized)
37.50
Price/Sales
11.01
Dividend Yield (Trailing)
Dividend Yield (Forward)
Total Yield
2.14%

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
TRIP
BKNG
Price/Earnings (Normalized)
37.5021.5524.80
Price/Book Value
12.894.39
Price/Sales
11.012.256.20
Price/Cash Flow
34.5122.0323.52
Price/Earnings
ABNB
TRIP
BKNG

Financial Strength

Metric
ABNB
TRIP
BKNG
Quick Ratio
1.632.201.20
Current Ratio
1.662.271.28
Interest Coverage
17.642.775.97
Quick Ratio
ABNB
TRIP
BKNG

Profitability

Metric
ABNB
TRIP
BKNG
Return on Assets (Normalized)
28.58%3.92%21.88%
Return on Equity (Normalized)
85.50%12.45%
Return on Invested Capital (Normalized)
57.72%5.76%39.48%
Return on Assets
ABNB
TRIP
BKNG
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Travel Services Industry Comparables

Ticker
Name
Morningstar Rating for Stocks
Capital Allocation
Economic Moat
Market Cap
BKNG
Booking Holdings IncHfyxcyvbmkGsqvjxb$124.0 Bil
RCL
Royal Caribbean GroupMnyvvlhnHcptf$35.7 Bil
TRPCF
Trip.com Group LtdTsvnxnp$28.5 Bil
TCOM
Trip.com Group Ltd ADRFsjmbnpBsssgl$28.5 Bil
CCL
Carnival CorpTxzqyvmGhqgrl$21.4 Bil
EXPE
Expedia Group IncQrkjxwlDbygrq$18.8 Bil
NCLH
Norwegian Cruise Line Holdings LtdPtdxjtlDtbcql$8.9 Bil
TRIP
TripAdvisor IncZgrpndmvXxsw$3.8 Bil
SABR
Sabre CorpZqfvtykFpxsndg$916.5 Mil

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