TripAdvisor (TRIP) has fallen 12.5% YTD. As of its June 19 closing price of $47.19, the stock is currently trading near its 52-week low of $42.01 reached on June 3. The majority of online travel booking agencies have also reported a decline or slower growth in their first-quarter revenues.
TripAdvisor (TRIP) rose ~2% on June 19 after SunTrust turned bullish on the stock. SunTrust analyst Naved Khan upgraded his rating on the vacation booking company to “buy” from “hold,” citing a robust revenue growth projection for its Experiences segment over the next several years.
Shares of online travel booking agency TripAdvisor (TRIP) fell 13.8% last week. The stock is currently trading near its 52-week low of $43.40 from October 10 last year.
TripAdvisor’s (TRIP) average monthly unique visitors fell 5% YoY to 411 million users in the first quarter due to its hotel marketing optimization initiatives.
Booking Holdings (BKNG) stock is currently trading at a discounted PE valuation multiple to its peers Ctrip.com International (CTRP), TripAdvisor (TRIP), and Expedia (EXPE).
Apart from a healthy travel demand environment, Booking Holdings’ (BKNG) sustained focus on investing in marketing, alternative accommodations, people, and technology could continue driving its revenues.
At current market prices, TripAdvisor’s (TRIP) PE ratio stands at 39.7x, which is between its all-time high of 50.7x in July 2014 and its all-time low of 17.4x in October 2012.
TripAdvisor’s (TRIP) sustained focus on enhancing its mobile-centric product designs along with marketing initiatives will likely continue to attract new users and drive overall user base.
Currently, TripAdvisor’s (TRIP) forward price-to-earnings ratio stands at 28.0x, which is lower than the 35.6x average valuation seen since its initial stock listing in 2011.
At the end of 3Q17, TripAdvisor had $763.0 million in cash and short-term investments on its balance sheet—lower than the ~$904.0 million it had at the end of 2016.
After Priceline (PCLN) released its 3Q17 results, analysts’ estimates for 2017 and 2018 were revised downwards. For the fourth quarter of 2017, sales are expected to grow 14.8% year-over-year or YoY to $2.7 billion.
A large part of Priceline’s (PCLN) growth in the past has come from acquiring smaller companies all over the world. It had to raise debt to finance some of these acquisitions.
Hotel accommodations have historically driven Priceline’s growth. During the third quarter of the year, Priceline’s global accommodation business booked 178 million room nights.
The Priceline Group (PCLN) reported its third-quarter financial results after market hours on November 6. PCLN beat analyst estimates for both revenues and earnings.
On the day that Dara Khosrowshahi’s departure was announced, Expedia (EXPE) stock fell as much as 4.5%. Investors weren’t certain about Expedia’s future.
Of the 24 analysts rating TripAdvisor (TRIP) stock after 2Q17, 8.3% (two analysts) have issued a “buy” rating, and 70.8% (17 analysts) have issued a “hold.”
Currently, TripAdvisor’s (TRIP) forward PE ratio is 34.5x, which is mid-level to its all-time high of 50.69x in July 2014 and its all-time low of 17.4 in October 2012.
According to a Reuters consensus, of the 31 analysts tracking Priceline Group (PCLN), 23.3%, or seven analysts, have a “strong buy” rating for the stock.
Currently, Priceline (PCLN) trades at a forward PE (price-to-earnings) multiple of 27.3x. That’s higher than its average valuation of 22.0x since November 2008.
Out of the 31 analysts tracking Priceline (PCLN), seven analysts have a “strong buy” recommendation on the stock, and 18 analysts have a “buy” recommendation on the stock.
From 2012 to 2014, Priceline’s gross bookings grew at an average of 30%. For 2015, accounting for the strong US dollar, growth was just 10% YoY, or 25% on a constant currency basis.
For 1Q17, analysts are estimating Priceline’s (PCLN) revenues to grow 13.8% year-over-year to $2.4 billion, lower than the 16.7% YoY growth seen in 1Q16.
Priceline’s (PCLN) fiscal 2016 performance was subdued by the dollar’s appreciation. Because Priceline has a widespread international presence, it’s prone to currency fluctuation risks.
Priceline (PCLN) reported its 4Q16 results on February 27, 2017. Priceline reported earnings per share of $13.50, a 34.7% increase YoY, which beat analyst estimates of $12.85 per share.
With its metasearch brands—Kayak, Momondo, and Skyscanner (through Ctrip)—Priceline seems to have a larger share of the pie, leaving little on the table when Expedia goes shopping.
Earlier this month, the Priceline Group (PCLN) signed a deal to acquire Momondo Group. Priceline will acquire all outstanding shares of Momondo for $550 million in an all-cash deal.
Gross bookings is the metric used to measure the total value of all travel services purchased by customers. On a constant dollar basis, gross bookings have shown strong growth.
Of the 28 analysts rating TripAdvisor (TRIP) stock after the company’s 4Q16 earnings report, two analysts issued a “buy” rating, 23 analysts issued a “hold” rating, and three analysts issued a “sell” rating.
Expedia (EXPE) currently trades at a forward PE multiple of 22.5x. This multiple is significantly higher than its average valuation multiple of 14.8x since November 2008.
Trivago (TRVG) went public in December 2016. Though it planned to sell 28.5 million shares at $14, it ended up selling only 26.1 million shares at just $11 per share.
For 2016, Expedia’s (EXPE) adjusted EBITDA (as reported by the company) rose 39% year-over-year or YoY to $1.6 billion, compared to $1.2 billion in 2015.
