Travel Services · NASDAQ
Current Price
$140.28
Intrinsic Value
Use the calculator below to estimate
Run a full DCF analysis on Airbnb, Inc. with auto-filled fundamentals, adjustable assumptions, and sensitivity heatmap.
Airbnb, Inc., together with its subsidiaries, operates a platform that enables hosts to offer stays and experiences to guests worldwide. The company's marketplace model connects hosts and guests online or through mobile devices to book spaces and experiences. It primarily offers private rooms, primary homes, or vacation homes. The company was formerly known as AirBed & Breakfast, Inc. and changed its name to Airbnb, Inc. in November 2010. Airbnb, Inc. was founded in 2007 and is headquartered in San Francisco, California.
ROIC (TTM)
19.2%
ROE (TTM)
30.9%
FCF Yield
5.51%
Based on trailing twelve-month data, ABNB shows a free cash flow per share of N/A and a ROIC of 19.2%, key inputs for stock valuation using the DCF method. The P/FCF ratio of N/A and FCF yield of 5.51% are important context metrics when evaluating ABNB's stock valuation relative to peers.
The intrinsic value of ABNB depends on assumptions about future growth rate, discount rate (WACC), and terminal value. A DCF model discounts projected free cash flows back to present value — small changes in WACC can shift the estimate by 20% or more, which is why sensitivity analysis is essential.
Whether ABNB is undervalued depends on comparing the DCF-derived intrinsic value to the current market price of $140.28. A positive margin of safety (intrinsic value above market price) suggests potential undervaluation, but the degree of confidence depends on the reliability of your growth and discount rate assumptions.
To perform a DCF valuation on Airbnb, Inc.: (1) Start with the trailing free cash flow per share as the base, (2) project future FCF growth over 5-10 years based on Travel Services industry trends and company fundamentals, (3) apply a discount rate (WACC) reflecting ABNB's risk profile, and (4) add a terminal value for cash flows beyond the projection period.
DCF (Discounted Cash Flow) estimates what a company is worth today based on its future cash generation. For Airbnb, Inc., this means projecting how much free cash flow the Travel Services will produce over the next 5-10 years, then discounting those amounts to today's dollars. ABNB's ROIC of 19.2% indicates strong capital efficiency, which supports higher growth assumptions in the DCF model.
WACC (Weighted Average Cost of Capital) is the discount rate in a DCF model — it reflects the minimum return investors require. For ABNB, the capital structure and equity risk premium determine WACC. A 1% increase in WACC typically reduces the intrinsic value by 10-15%.
