Expedia Group, Inc. (EXPE) Stock Valuation — PE Analysis
Travel Services · NASDAQ
Current Price
$304.27
PE Ratio (TTM)
25.4x
Intrinsic Value
$323.36
+5.9% margin of safety
COMPETITIVE MOAT
↑Vast Brand Recognition and Loyalty
Expedia's established brands like Expedia, Hotels.com, and Vrbo foster strong consumer recognition. This leads to repeat bookings and a loyal customer base, creating a significant barrier to entry.
↑Extensive Supplier Network and Inventory
A broad network of hotels, airlines, and car rental agencies provides a comprehensive selection for travelers. This scale makes it difficult for smaller competitors to match the breadth of offerings.
↑Data Scale and Personalization Capabilities
Expedia leverages vast amounts of booking data to personalize recommendations and offers. This data advantage enhances user experience and drives conversion rates, creating a virtuous cycle.
INVESTMENT RISKS
↓Economic Downturns Impacting Travel Spend
Recessions or economic uncertainty can significantly reduce discretionary travel spending. This directly affects Expedia's booking volumes and revenue, as travel is often one of the first areas consumers cut back on.
↓Technological Disruption and AI Advancements
Emerging AI-powered travel planning tools or new booking platforms could disrupt traditional OTA models. Expedia must continuously innovate to stay ahead of evolving consumer preferences and technological shifts.
↓Regulatory Scrutiny and Antitrust Concerns
The online travel industry faces potential regulatory oversight regarding pricing, data usage, and market dominance. Changes in regulations could impact Expedia's business practices and profitability.
Base case
EXPE base case PE valuation
A base case PE valuation for EXPE estimates a fair value of about $323.36 per share, against a current price of $304.27. The model assumes 7.1% annual earnings growth, a 25x target PE multiple, and a 10% discount rate.
Intrinsic Value
$323.36
Margin of safety
+5.9%
Expected annual return
+1.2%
Base case assumptions: 7.1% annual earnings growth, 25x target PE, 10% discount rate, 5 year projection. Data as of 2026-07-29.
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 EXPE PE valuation
Adjust the target PE, earnings growth, and discount rate to see how the fair value and margin of safety for Expedia Group, Inc. respond.
Open PE Calculator for EXPECompany Overview
Expedia Group, Inc. operates as a leading online travel company, serving customers both within the United States and across international markets. The enterprise structures its extensive operations into three primary divisions: Retail, Business-to-Business (B2B), and Trivago. Its comprehensive brand portfolio caters to diverse travel needs. Key retail brands include Brand Expedia, a full-service online travel platform offering localized websites; Hotels.com, specializing in the marketing and distribution of lodging accommodations; and Vrbo, an online marketplace dedicated to alternative accommodation options. Other prominent travel booking websites under its umbrella are Orbitz, Travelocity, and CheapTickets. For the EMEA region, ebookers functions as an online travel agent, presenting travelers with a broad spectrum of choices, while Hotwire provides various travel booking services. Complementing these are CarRentals.com, an online car rental booking service; Classic Vacations, a specialist in luxury travel experiences; and Expedia Cruise, which guides travelers in booking cruises. In the B2B sphere, Expedia Partner Solutions offers travel and non-travel vertical services to a wide array of clients, including corporate travel management firms, airlines, travel agents, online retailers, and financial institutions. Egencia, another key brand, focuses specifically on delivering corporate travel management services. Further extending its reach, the portfolio also features Trivago, a hotel metasearch website that refers users to online travel companies and service providers, alongside Expedia Group Media Solutions. The company also provides online travel services through several regional brands like Wotif.com, lastminute.com.au, travel.com.au, Wotif.co.nz, and lastminute.co.nz. Beyond brand-specific offerings, Expedia Group, Inc. delivers loyalty programs, a wide array of hotel and alternative accommodation choices, and advertising and media services. Serving both individual leisure travelers and corporate clients, the company was initially founded as Expedia, Inc. in 1996. It subsequently rebranded to Expedia Group, Inc. in March 2018, and its headquarters are located in Seattle, Washington.
Financial Metrics — EXPE PE Stock Valuation Data
PE Ratio (TTM)
25.4x
PEG Ratio
0.75
Earnings Yield
4.01%
ROE (TTM)
147.6%
Revenue/Share (TTM)
$124.53
Dividend Yield
0.58%
Debt/Equity
8.17x
Frequently Asked Questions
What is the PE ratio of EXPE?
The trailing twelve-month PE ratio of EXPE reflects how much investors pay per dollar of Expedia Group, Inc.'s earnings. This metric is most useful when compared to Travel Services peers and the company's own historical range.
Is EXPE overvalued based on PE ratio?
EXPE's PE of 25.4x combined with a PEG ratio of 0.75 provides a growth-adjusted perspective. A PEG below 1.0 means the P/E is low relative to the earnings growth rate. 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 EXPE stock using PE ratio?
To value Expedia Group, Inc. using PE: (1) Compare the current PE (25.4x) against the Travel Services median to assess relative pricing, (2) check the PEG ratio (0.75) 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 EXPE?
EXPE's PEG ratio is 0.75, calculated by dividing the PE ratio (25.4x) by the expected earnings growth rate. A PEG below 1.0 means the P/E is low relative to the expected earnings growth rate. Note that PEG accuracy depends on the reliability of growth estimates.
Should I use PE ratio or DCF for EXPE stock valuation?
PE ratio gives a quick relative read — how EXPE is priced versus Travel Services peers. DCF provides an absolute value based on projected free cash flows. For EXPE, with a strong ROE of 147.6%, 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 EXPE 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 EXPE with different methods and assumptions, so the two conclusions can differ. Compare the DCF intrinsic value.
Price as of 2026-07-29. Financial data from Financial Modeling Prep (trailing twelve months) · Valuation methodology by Charlie Wang.
This is an estimate, not investment advice.