Valuation Overview

Growth Story

Over the next few years, revenue is expected to grow by 7.04%, lower than industry average of 7.71%.

Growth Trajectory

Profitability

In the growth phase company makes 27.85% profit on every dollar of sales, higher than industry average of 9.78%.

Profitability Trajectory

Risk Profile

Investors expect at least 5.12% return to justify the risk of holding stock.

Risk vs Return

Required Return (Cost of Capital) (%)
Return on Invested Capital (%)

Financial Health Overview

Enterprise Value
111.18B USD
Equity Value
109.79B USD
FCF Yield
41.90%
Average ROIC
8.83%
Cost of Capital
6.46%
P/E Ratio
28.68x
Financial MetricMost Recent 12 months (USD)Previous Year (USD)
Revenues25.02B USD23.74B USD
Operating Income or EBIT7.81B USD8.59B USD
Interest Expense1.88B USD1.29B USD
Book Value Of Equity-6.66B USD-4.02B USD
Book Value Of Debt18.99B USD17.08B USD
Cash and Marketable Securities17.59B USD16.16B USD
Number of Shares Outstanding32.42M--
Minority interests0 USD0 USD
Current Stock Price5598.38 USD--
Effective Tax Rate19.00%--
Marginal Tax Rate25.00%--

Performance vs Industry

Revenue Growth
-2.29%
5.41%Company
vs
7.70%Industry
Below Industry
Operating Margin
+21.43%
31.21%Company
vs
9.78%Industry
Above Industry
Booking Holdings Inc. demonstrates superior operational efficiency with margins above industry average, indicating effective cost management.

Terminal Value Analysis

Growth Rate
4.59%
Cost of Capital
8.83%
Return on Capital
8.83%
Reinvestment Rate
52.09%
Terminal value represents 52% of total enterprise value, based on 4.59% perpetual growth and 8.83% discount rate.

Equity Value Breakdown

ComponentValueType
Present Value (Terminal Value) 58.06B USD Add
Present Value (Cash Flow Over Next 10 Years) 53.12B USD Add
Value of Operating Assets 111.18B USD Sub-total
Debt 18.98B USD Subtract
Minority Interests — Subtract
Cash 17.59B USD Add
Value of Equity 109.79B USD Sub-total
Number of Shares 32.42M shares Divisor
Estimated Value per Share (Fair Value) 3.38K USD Total
Current Market Price 5.59K USD Reference

Financial Projections

Total FCF Present Value
53.12B USD
Avg Revenue Growth
5.74%
Avg Operating Margin
27.10%
Avg ROIC
-422.04%
Year 2026 2027 2028 2029 2030 2031 2032 2033 2034 2035 Terminal Year
REVENUE
Revenue27.10B USD29.01B USD31.06B USD33.24B USD35.58B USD37.91B USD40.21B USD42.46B USD44.62B USD46.67B USD48.82B USD
Growth Rate 8.33% 7.03% 7.03% 7.03% 7.03% 6.55% 6.06% 5.57% 5.08% 4.59% 4.59%
PROFITABILITY
Operating Income8.46B USD8.40B USD8.65B USD8.88B USD9.11B USD9.71B USD10.30B USD10.87B USD11.42B USD11.95B USD12.50B USD
Operating Margin 31.21% 28.97% 27.85% 26.73% 25.61% 25.61% 25.61% 25.61% 25.61% 25.61% 25.61%
EBIT (1-tax)6.85B USD6.81B USD7.00B USD7.19B USD7.38B USD7.75B USD8.09B USD8.41B USD8.70B USD8.96B USD9.37B USD
CASH FLOW
Reinvestment329.13M USD352.30M USD377.10M USD403.65M USD402.12M USD793.11M USD773.52M USD745.19M USD708.00M USD740.57M USD4.88B USD
Free Cash Flow6.52B USD6.45B USD6.63B USD6.79B USD6.98B USD6.95B USD7.32B USD7.67B USD8.00B USD8.22B USD4.49B USD
Terminal Value--------------------106.21B USD
Present Value6.20B USD5.84B USD5.70B USD5.56B USD5.43B USD5.11B USD5.05B USD4.93B USD4.75B USD4.49B USD—
EFFICIENCY
ROIC -130.25% -138.04% -152.97% -171.24% -194.26% -228.05% -310.75% -459.48% -801.30% -2366.69% 8.83%
Cost of Capital 5.12% 5.12% 5.12% 5.12% 5.12% 5.86% 6.60% 7.34% 8.08% 8.83% 8.83%
Sales/Capital 5.79x 5.79x 5.79x 5.79x 5.79x 2.89x 2.89x 2.89x 2.89x 2.89x —

Profitability & Efficiency

Operating Margin (%)
ROIC (%)

Value Creation Analysis

ROIC (%)
Cost of Capital (%)

Operational Cash Flow Analysis

Free Cash Flow ($B)
Reinvestment ($B)