Airbnb, Inc. (ABNB) Fair Value & PE Analysis
Travel Services · NASDAQ
Current Price
$187.30
PE Ratio (TTM)
42.4x
Intrinsic Value
$215.67
+13.2% margin of safety
What Is Airbnb, Inc.'s Fair Value?
As of 2026-08-21, applying a 41.2x earnings multiple to Airbnb, Inc.'s (ABNB) earnings per share of $4.55 yields a fair value estimate of $215.67 per share, versus a market price of $187.3.
Fair value from earnings multiples is sensitive to the multiple you choose. Across the sensitivity grid the estimate spans $184.84 to $250.35. 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 the PE model works · Recalculate in PE mode · ABNB intrinsic value (DCF view)
Is Airbnb, Inc. (ABNB) Overvalued?
At $187.3, ABNB trades about 13.2% below its PE-based fair value estimate, a modest discount to its earnings power, though not enough to call it cheap outright.
COMPETITIVE MOAT
↑Powerful Network Effects
A vast number of hosts attract more travelers, and a large traveler base incentivizes more hosts. This creates a virtuous cycle that is difficult for competitors to replicate.
↑Brand Recognition and Trust
Airbnb has established itself as a trusted global brand for unique accommodations. This brand equity reduces customer acquisition costs and fosters loyalty.
↑Data and Scale Advantage
Extensive data on user preferences and booking patterns allows for personalized recommendations and operational efficiencies. This scale is a significant barrier to entry.
INVESTMENT RISKS
↓Intensifying Competition
While Airbnb has a strong network effect, other platforms and traditional hospitality providers are innovating and could capture market share.
↓Dependence on Host Supply
The company's success hinges on attracting and retaining a sufficient number of hosts. Any significant decline in host participation could negatively impact the platform.
↓AI Integration Challenges
While AI integration offers opportunities, the successful and ethical deployment of AI across operations presents technical and user adoption challenges.
Base case
ABNB base case PE valuation
Intrinsic Value
$215.67
Margin of safety
+13.2%
Expected annual return
+2.9%
Base case assumptions: 10.6% annual earnings growth, 41.16x target PE, 10% discount rate, 5 year projection. Data as of 2026-08-21.
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)
42.4x
PEG Ratio
8.09
Earnings Yield
2.43%
ROE (TTM)
33.4%
Revenue/Share (TTM)
$22.23
Debt/Equity
0.32x
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 42.4x combined with a PEG ratio of 8.09 provides a growth-adjusted perspective. A PEG above 2.0 means the P/E is high 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 ABNB stock using PE ratio?
To value Airbnb, Inc. using PE: (1) Compare the current PE (42.4x) against the Travel Services median to assess relative pricing, (2) check the PEG ratio (8.09) 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 8.09, calculated by dividing the PE ratio (42.4x) by the expected earnings growth rate. A PEG above 2.0 means the P/E is high 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 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 33.4%, 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 2026-08-21. Financial data from Financial Modeling Prep (trailing twelve months) · Valuation methodology by Charlie Wang.
This is an estimate, not investment advice.