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Trip.com Group Ltd TCOM

Rating as of

Morningstar’s Analysis

Valuation
Currency in USD
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1-Star Price

PREMIUM

5-Star Price

PREMIUM

Economic Moat

PREMIUM

Capital Allocation

PREMIUM

Trip.com Fairly Valued; We're More Bearish Than Street on Travel Recovery

Chelsey Tam Senior Equity Analyst

Analyst Note

| Chelsey Tam |

We maintain our fair value estimate for narrow-moat Trip.com at $39 per ADS. We have made no change to our forecasts, which are below FactSet consensus as of May 19, because the road to containing COVID-19 and its variants and achieving herd immunity, which would allow global travel to recover, is likely to be bumpy and slow. The occasional scares of community spread of COVID-19 and its variants can also put a damper on domestic travel. The shares are fairly valued, in our view.

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Company Profile

Business Description

Trip.com is the largest online travel agency in China. The company generated about 78% of sales from accommodation reservations and transportation ticketing in 2020. The rest of Trip.com's revenue comes from package tours and corporate travel. Most of its sales come through websites and mobile platforms, while the rest come from call centers. The company was founded in 1999 and listed on the Nasdaq in December 2003.

Contact
968 Jin Zhong Road
Shanghai, 200335, Cayman Islands
T +86 2134064880
Sector Consumer Cyclical
Industry Travel Services
Most Recent Earnings Mar 31, 2021
Fiscal Year End Dec 31, 2021
Stock Type
Employees 33,400

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