Booking Holdings Analysis
Our Co-Founder, Adamos Hadjiantoniou was recently invited to the HUSTLE HUB YouTube channel to share our analysis on BKNG 0.00%↑.
In this analysis, we cover various aspects, including Booking's business model, an explanation of the deviation in Booking's profitability compared to EXPE 0.00%↑ and ABNB 0.00%↑, our analysis of the key performance indicators (BKNG Vs ABNB), and conduct a Multiples and a Reverse DCF valuation.
We would like to note that this is our first attempt at creating video content, and we would greatly appreciate any feedback. If you enjoyed this type of analysis, please like and share the post, as it would help us a lot. We also apologize for any speaking mistakes, as English is not our native language.
A. Full video
Here is the link to the full video (chapters are shown on the below screenshot):
Booking Holdings Stock Analysis, BUY or SELL? $BKNG 2023 Outlook
Source: Hustle Hub Channel
Please make sure to check out the chapter titled "Key Financials of BKNG, ABNB & EXPE" at 10:15, where we explain why Booking has higher margins compared to Expedia.
Single Brand Vs a Multi-brand strategy
Booking’s higher share in Europe
Merchant weight of Expedia Vs Booking
B. Reverse DCF clip
If you'd like to have a preview, here is a clip in which we apply the Reverse DCF method. Our conclusion suggests that Booking appears to be fairly valued.
The growth rates derived from our analysis may seem high when compared to the industry forecasts of 6.7% CAGR. However, factors such as the shift to mobile, the expectation of online bookings to comprise 74% of total industry revenues, and the notable growth rates observed in the alternative accommodation and airline sectors increase the likelihood of achieving these growth rates.
C. Booking presentation
If you are interested to go over the pdf file at your own pace, you can download it using the link provided below.
Since the video is accessible to everyone, please feel free to share your thoughts and ask any questions in the comments section below.
Thank you and we look forward to seeing you on Thursday with our next Deep Dive!
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