Assessing Booking Holdings (BKNG) Valuation After Recent Share Price Softness

Why Booking Holdings Is On Investors’ Radar Today

Booking Holdings (BKNG) is drawing attention after recent share price moves, with the stock showing mixed short term returns and a modest gain over the past month. Investors are weighing these moves against the company’s current fundamentals.

See our latest analysis for Booking Holdings.

At a share price of $5,323.20, Booking Holdings has seen short term share price softness, with a 1 day return decline of 0.60% and a 7 day return decline of 2.17%, while its 1 year total shareholder return of 9.23% and 3 year total shareholder return of about 1.45x hint at longer term momentum that investors are now reassessing against current expectations and perceived risks.

If Booking’s move has you reassessing travel exposure, it could be a moment to scan other consumer and service names through fast growing stocks with high insider ownership.

With shares around $5,323, a 34% gap to one intrinsic value estimate and a 17% discount to analyst targets, the real question is whether Booking is still mispriced or if the market already reflects its future growth.

Most Popular Narrative: 14.3% Undervalued

With Booking Holdings closing at $5,323.20 against a narrative fair value of about $6,208, the narrative identifies meaningful upside embedded in long-term assumptions.

The analysts have a consensus price target of $6,100.361 for Booking Holdings based on their expectations of its future earnings growth, profit margins and other risk factors. However, there is a degree of disagreement amongst analysts, with the most bullish reporting a price target of $7,218.0, and the most bearish reporting a price target of $5,200.0.

Read the complete narrative.

Curious what supports that higher value range? The narrative emphasizes a step change in earnings, wider margins, and a future earnings multiple that assumes sustained strength.

Result: Fair Value of $6,208 (UNDERVALUED)

Have a read of the narrative in full and understand what's behind the forecasts.

However, the story could change if geopolitical or macro shocks hit travel demand, or if rising customer acquisition costs start to squeeze Booking’s margins.

Find out about the key risks to this Booking Holdings narrative.

Build Your Own Booking Holdings Narrative

If you see the numbers differently, or prefer to test your own assumptions, you can build a custom Booking view in just a few minutes, starting with Do it your way.

A great starting point for your Booking Holdings research is our analysis highlighting 3 key rewards and 1 important warning sign that could impact your investment decision.

Looking for more investment ideas?

If Booking has you thinking about where else your money could work harder, it is worth scanning a few focused stock ideas that match different styles.

• Target potential mispricings by checking out these 878 undervalued stocks based on cash flows that appear cheap relative to their underlying cash flows.
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• Boost your income focus by scanning these 14 dividend stocks with yields > 3% that may offer higher yields than broad market averages.

This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

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