Airbnb, Inc. (ABNB) Fair Value & PE Analysis
Travel Services · NASDAQ
Current Price
$132.28
PE Ratio (TTM)
31.4x
Intrinsic Value
$229.18
+42.3% margin of safety
What Is Airbnb, Inc.'s Fair Value?
As of 2026-06-12, applying a 31.0x earnings multiple to Airbnb, Inc.'s (ABNB) earnings per share of $4.21 yields a fair value estimate of $229.18 per share, versus a market price of $132.28.
Fair value from earnings multiples is sensitive to the multiple you choose. Across the sensitivity grid the estimate spans $193.56 to $269.24. This is a relative estimate anchored to earnings, not a statement of fact. For a cash flow based view, see the intrinsic value estimate on the DCF page.
How our PE model works · Recalculate in PE mode · ABNB intrinsic value (DCF view)
Is Airbnb, Inc. (ABNB) Overvalued?
At $132.28, ABNB trades below its PE-based fair value estimate by a wide margin. By this model the stock looks cheap relative to its earnings power, but check whether earnings are sustainable before reading too much into it.
COMPETITIVE MOAT
↑Network Effects & Brand Recognition
Airbnb's vast host and guest network creates a powerful flywheel. High brand recognition attracts new users, reinforcing its dominant marketplace position.
↑AI-Powered Customer Support
AI handling a third of support queries in North America reduces costs and improves user experience. Global rollout promises further efficiency gains and better guest-host interactions.
↑Enhanced Booking Flexibility
The 'Reserve Now, Pay Later' option reduces checkout friction and appeals to price-sensitive travelers. This expands conversion potential and broadens the customer base.
INVESTMENT RISKS
↓Platform Investment Margin Pressure
Ongoing platform investments are pressuring operating margins. This indicates near-term profitability trade-offs for future product and ecosystem strengthening.
↓Softening Profitability Amid Growth
While revenue grows, net earnings have fallen. This suggests that expanding the business is currently coming at the expense of profitability.
↓Competition from Traditional Channels
AI search and new hotel tools aim to compete with traditional booking channels. However, established players and evolving travel tech pose ongoing competitive threats.
Base case
ABNB base case PE valuation
Intrinsic Value
$229.18
Margin of safety
+42.3%
Expected annual return
+11.6%
Base case assumptions: 20.0% annual earnings growth, 31x target PE, 10% discount rate, 5 year projection. Data as of 2026-06-12.
This base case uses default assumptions and is not financial advice. The fair value changes significantly when the target PE or earnings growth rate changes. Open the calculator to set your own assumptions and see the full sensitivity range.
Customize the ABNB PE valuation
Adjust the target PE, earnings growth, and discount rate to see how the fair value and margin of safety for Airbnb, Inc. respond.
Open PE Calculator for ABNBCompany Overview
Airbnb, Inc., along with its affiliated entities, manages a global digital marketplace. This platform seamlessly connects individuals, known as hosts, who wish to offer a variety of accommodations and unique local experiences, with guests seeking such services worldwide. Users can easily book anything from private rooms and primary residences to vacation homes through its online and mobile channels. Originally established as AirBed & Breakfast, Inc. in 2007, the company officially rebranded to Airbnb, Inc. in November 2010. Its corporate headquarters are situated in San Francisco, California.
Financial Metrics — ABNB PE Stock Valuation Data
PE Ratio (TTM)
31.4x
PEG Ratio
15.87
Earnings Yield
3.18%
ROE (TTM)
31.2%
Revenue/Share (TTM)
$21.15
Debt/Equity
0.33x
Frequently Asked Questions
What is the PE ratio of ABNB?
The trailing twelve-month PE ratio of ABNB reflects how much investors pay per dollar of Airbnb, Inc.'s earnings. This metric is most useful when compared to Travel Services peers and the company's own historical range.
Is ABNB overvalued based on PE ratio?
ABNB's PE of 31.4x combined with a PEG ratio of 15.87 provides a growth-adjusted perspective. A PEG above 2.0 suggests ABNB may be richly valued even accounting for growth. Keep in mind that PE-based valuation works best for profitable, mature companies — for high-growth or cyclical Travel Services, a DCF analysis may be more appropriate.
How do I value ABNB stock using PE ratio?
To value Airbnb, Inc. using PE: (1) Compare the current PE (31.4x) against the Travel Services median to assess relative pricing, (2) check the PEG ratio (15.87) to adjust for growth expectations, (3) review the 5-year PE range to identify where the stock sits historically, and (4) estimate fair value by multiplying a target PE by forward EPS estimates. This relative approach complements DCF's absolute valuation.
What is the PEG ratio of ABNB?
ABNB's PEG ratio is 15.87, calculated by dividing the PE ratio (31.4x) by the expected earnings growth rate. A PEG above 2.0 often signals the stock is priced aggressively relative to its growth trajectory. Note that PEG accuracy depends on the reliability of growth estimates.
Should I use PE ratio or DCF for ABNB stock valuation?
PE ratio gives a quick relative read — how ABNB is priced versus Travel Services peers. DCF provides an absolute value based on projected free cash flows. For ABNB, with a strong ROE of 31.2%, both methods are worth using — PE for a market-relative check, DCF to stress-test whether fundamentals justify the price. Each method has blind spots: PE ignores capital structure and cash flow quality, while DCF is sensitive to growth and discount rate assumptions.
Learn More
- See ABNB DCF Valuation → — Intrinsic value via Discounted Cash Flow analysis
- PE Methodology — Step-by-step guide to PE ratio stock valuation
- DCF Methodology — Guide to discounted cash flow analysis
- PE Ratio — Understanding the price-to-earnings ratio
- Intrinsic Value — How to evaluate stock fair value
Related PE Valuations
All Consumer Cyclical valuationsP/E and DCF value ABNB with different methods and assumptions, so the two conclusions can differ. Compare the DCF intrinsic value.
Price as of 2026-06-12. Financial data from Financial Modeling Prep (trailing twelve months) · Valuation methodology by Charlie Wang.
This is an estimate, not investment advice.