Expedia (EXPE): Assessing the Valuation After New Set Jetting Hub Launch and AI Leadership Appointment

Expedia Group (EXPE) just doubled down on two big themes driving its business by launching a Set Jetting travel hub for screen inspired trips and appointing its first chief AI and data officer.

See our latest analysis for Expedia Group.

Those moves come as momentum builds in the stock, with a 21.46% 3 month share price return and a 42.67% year to date share price return contributing to a 178.81% 3 year total shareholder return.

If this kind of thematic growth story appeals to you, it could be worth seeing which other names are lining up similar catalysts across fast growing stocks with high insider ownership.

With Expedia trading just below analyst targets but at nearly a 50 percent discount to some intrinsic value estimates, are investors still early to a rerating story, or is the market already pricing in this next leg of growth?

Most Popular Narrative Narrative: 2% Undervalued

With Expedia last closing at $264.41 against a narrative fair value of $269.79, the story frames today’s price as still leaving modest upside.

In order for you to agree with the analyst's consensus, you'd need to believe that by 2028, revenues will be $16.9 billion, earnings will come to $2.1 billion, and it would be trading on a PE ratio of 14.9x, assuming you use a discount rate of 9.1%.

Read the complete narrative.

Curious how steady mid single digit growth, rising margins, and a lower future earnings multiple can still argue for upside from here? The full narrative unpacks the forecasts, timelines, and valuation math that turn those moving parts into that fair value.

Result: Fair Value of $269.79 (UNDERVALUED)

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

However, soft US travel demand and intensifying AI enabled competition could pressure Expedia’s margins and growth, challenging assumptions behind this modest upside narrative.

Find out about the key risks to this Expedia Group narrative.

Build Your Own Expedia Group Narrative

If this consensus story does not quite fit your view, dive into the numbers yourself and build a custom take in minutes, Do it your way.

A great starting point for your Expedia Group research is our analysis highlighting 4 key rewards and 1 important warning sign that could impact your investment decision.

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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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