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Expedia Group Inc EXPE

Morningstar Rating
$130.46 −2.76 (2.07%)
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Company Report

Expedia's Enhanced Network Producing Healthy Profits Amid Normalizing Industry Demand Growth

Expedia's migration to a unified platform during 2020-23, which shares data, supply and loyalty (OneKey) across its brands, versus having it in a siloed structure previously, stand to support its network advantage, the source of its narrow moat. We think worker flexibility will increase long-term travel demand. We developed this positive stance because higher-income occupations (like those in technology, finance, legal, and architecture) are in industries that are the most likely to support ongoing work from remote locations.

Price vs Fair Value

EXPE is trading within a range we consider fairly valued.
Price
$130.46
Fair Value
$534.00
Uncertainty
High
1-Star Price
$398.57
5-Star Price
$317.00
Economic Moat
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Capital Allocation
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Bulls Say, Bears Say

Bulls

Expedia has a dominant network effect that we think only a few can enjoy, and recent investments to unifiy its platform and acquisitions stand to add to the company's platform advantage.

Bears

Google continues to siphon free organic traffic in favor of its own platform, causing incremental marketing costs for Expedia.

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News

Trading Information

Previous Close Price
$133.22
Day Range
$130.38132.98
52-Week Range
$87.94160.05
Bid/Ask
$130.30 / $130.39
Market Cap
$17.78 Bil
Volume/Avg
2.1 Mil / 2.7 Mil

Key Statistics

Price/Earnings (Normalized)
13.38
Price/Sales
1.54
Dividend Yield (Trailing)
Dividend Yield (Forward)
Total Yield
11.93%

Company Profile

Expedia is the world's second-largest online travel agency by bookings, offering services for lodging (80% of total 2023 sales), air tickets (3%), rental cars, cruises, in-destination, and other (11%), and advertising revenue (6%). Expedia operates a number of branded travel booking sites, but its three core onlint travel agency brands are Expedia, Hotels.com, and Vrbo. It also has a metasearch brand, Trivago. Transaction fees for online bookings account for the bulk of sales and profits.
Sector
Consumer Cyclical
Industry
Travel Services
Stock Style Box
Mid Growth
Total Number of Employees
17,100

Competitors

Valuation

Metric
EXPE
TRIP
BKNG
Price/Earnings (Normalized)
13.3820.4924.48
Price/Book Value
11.744.18
Price/Sales
1.542.146.12
Price/Cash Flow
8.1620.9523.22
Price/Earnings
EXPE
TRIP
BKNG

Financial Strength

Metric
EXPE
TRIP
BKNG
Quick Ratio
0.602.201.20
Current Ratio
0.782.271.28
Interest Coverage
4.312.775.97
Quick Ratio
EXPE
TRIP
BKNG

Profitability

Metric
EXPE
TRIP
BKNG
Return on Assets (Normalized)
6.09%3.92%21.88%
Return on Equity (Normalized)
78.08%12.45%
Return on Invested Capital (Normalized)
14.82%5.76%39.48%
Return on Assets
EXPE
TRIP
BKNG
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Name
Morningstar Rating for Stocks
Capital Allocation
Economic Moat
Market Cap
BKNG
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Airbnb Inc Ordinary Shares - Class AXdxzkptMkhlkzv$103.8 Bil
RCL
Royal Caribbean GroupLqbblzknFjcypqt$32.8 Bil
TCOM
Trip.com Group Ltd ADRSdtvbkpKvtxnz$32.1 Bil
TRPCF
Trip.com Group LtdLtdhyqf$31.5 Bil
CCL
Carnival CorpGxmnnsbsNgnlt$18.8 Bil
NCLH
Norwegian Cruise Line Holdings LtdJnfmrlhxWhnwqr$7.6 Bil
TRIP
TripAdvisor IncCjyzyhwxDybq$3.7 Bil
SABR
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