Travel Services · NASDAQ
Current Price
$173.98
Intrinsic Value
Use the calculator below to estimate
Run a full DCF analysis on Booking Holdings Inc. with auto-filled fundamentals, adjustable assumptions, and sensitivity heatmap.
Booking Holdings Inc. provides travel and restaurant online reservation and related services worldwide. The company operates Booking.com, which offers online accommodation reservations; Rentalcars.com that provides online rental car reservation services; Priceline, which offer online travel reservation services, and consumers hotel, flight, and rental car reservation services, as well as vacation packages, cruises, and hotel distribution services. It also operates Agoda that provides online accommodation reservation services, as well as flight, ground transportation and activities reservation services. In addition, the company operates KAYAK, an online price comparison service that allows consumers to search and compare travel itineraries and prices, comprising airline ticket, accommodation reservation, and rental car reservation information; and OpenTable for booking online restaurant reservations. Further, it offers travel-related insurance products, and restaurant management services to consumers, travel service providers, and restaurants. The company was formerly known as The Priceline Group Inc. and changed its name to Booking Holdings Inc. in February 2018. The company was founded in 1997 and is headquartered in Norwalk, Connecticut.
ROIC (TTM)
68.2%
ROE (TTM)
-95.8%
FCF Yield
6.67%
Based on trailing twelve-month data, BKNG shows a free cash flow per share of N/A and a ROIC of 68.2%, key inputs for stock valuation using the DCF method. The P/FCF ratio of N/A and FCF yield of 6.67% are important context metrics when evaluating BKNG's stock valuation relative to peers.
The intrinsic value of BKNG 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 BKNG is undervalued depends on comparing the DCF-derived intrinsic value to the current market price of $173.98. 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 Booking Holdings 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 BKNG'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 Booking Holdings 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. BKNG's ROIC of 68.2% 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 BKNG, the capital structure and equity risk premium determine WACC. A 1% increase in WACC typically reduces the intrinsic value by 10-15%.
