Booking Holdings Inc. (BKNG) Fair Value & PE Analysis
Travel Services · NASDAQ
Current Price
$150.14
PE Ratio (TTM)
16.6x
Intrinsic Value
$191.53
+21.6% margin of safety
What Is Booking Holdings Inc.'s Fair Value?
As of 2026-10-27, applying a 16.0x earnings multiple to Booking Holdings Inc.'s (BKNG) earnings per share of $9.39 yields a fair value estimate of $191.53 per share, versus a market price of $150.14.
Fair value from earnings multiples is sensitive to the multiple you choose. Across the sensitivity grid the estimate spans $151.36 to $237.79. 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 · BKNG intrinsic value (DCF view)
Is Booking Holdings Inc. (BKNG) Overvalued?
At $150.14, BKNG trades about 21.6% below its PE-based fair value estimate, a modest discount to its earnings power, though not enough to call it cheap outright.
COMPETITIVE MOAT
↑Vast Global Network & Brand Recognition
Booking.com's extensive inventory of hotels and accommodations worldwide creates a powerful network effect. Strong brand recognition drives repeat bookings and customer loyalty.
↑Data Scale and Personalization Engine
Decades of booking data allow for sophisticated personalization and recommendations. This improves user experience and conversion rates, making it harder for competitors to replicate.
↑Supplier Relationships and Scale
Booking Holdings has deep relationships with a vast number of global suppliers. This scale provides preferred inventory and pricing, which is difficult for smaller players to match.
INVESTMENT RISKS
↓Regulatory Scrutiny and Antitrust Concerns
As a dominant player, Booking Holdings faces ongoing scrutiny regarding its market power and potential anti-competitive practices. Fines or mandated changes could impact its business model.
↓Economic Downturns and Travel Volatility
The travel industry is highly sensitive to economic conditions. Recessions or global events can significantly reduce consumer spending on travel, impacting Booking's revenue.
↓Intensifying Competition from Niche Players
While Booking has scale, specialized travel platforms and direct booking channels are gaining traction. These can offer more tailored experiences or better pricing for specific travel segments.
Base case
BKNG base case PE valuation
Intrinsic Value
$191.53
Margin of safety
+21.6%
Expected annual return
+5.0%
Base case assumptions: 9.3% annual earnings growth, 15.99x target PE, 10% discount rate, 5 year projection. Data as of 2026-10-27.
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 BKNG PE valuation
Adjust the target PE, earnings growth, and discount rate to see how the fair value and margin of safety for Booking Holdings Inc. respond.
Open PE Calculator for BKNGCompany Overview
Booking Holdings Inc. is a leading global provider of online travel and dining reservation services. The company manages a portfolio of well-known digital platforms. Among these, Booking.com specializes in online accommodation bookings, while Rentalcars.com is dedicated to facilitating vehicle rentals. Priceline offers a comprehensive range of online travel booking options, encompassing hotels, flights, rental cars, vacation packages, and cruises, alongside hotel distribution services. Agoda also provides online lodging reservations, further expanding into flights, ground transportation, and activity bookings. For travelers seeking the best deals, KAYAK functions as an online price comparison service, enabling users to search and contrast prices for airline tickets, hotels, and car rentals. Additionally, OpenTable allows for convenient online restaurant reservations. Beyond its core booking services, Booking Holdings Inc. also supplies travel-related insurance products and restaurant management solutions to individual consumers, travel service providers, and restaurants. Established in 1997, the company is headquartered in Norwalk, Connecticut. It officially adopted its current name, Booking Holdings Inc., in February 2018, having previously operated as The Priceline Group Inc.
Financial Metrics — BKNG PE Stock Valuation Data
PE Ratio (TTM)
16.6x
PEG Ratio
0.30
Earnings Yield
6.25%
ROE (TTM)
-96.7%
Revenue/Share (TTM)
$36.77
Dividend Yield
1.09%
Debt/Equity
n/m
Frequently Asked Questions
What is the PE ratio of BKNG?
The trailing twelve-month PE ratio of BKNG reflects how much investors pay per dollar of Booking Holdings Inc.'s earnings. This metric is most useful when compared to Travel Services peers and the company's own historical range.
Is BKNG overvalued based on PE ratio?
BKNG's PE of 16.6x combined with a PEG ratio of 0.30 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 BKNG stock using PE ratio?
To value Booking Holdings Inc. using PE: (1) Compare the current PE (16.6x) against the Travel Services median to assess relative pricing, (2) check the PEG ratio (0.30) 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 BKNG?
BKNG's PEG ratio is 0.30, calculated by dividing the PE ratio (16.6x) 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 BKNG stock valuation?
PE ratio gives a quick relative read — how BKNG is priced versus Travel Services peers. DCF provides an absolute value based on projected free cash flows. For the most reliable valuation, use PE as a quick comparability screen and DCF for a deeper fundamental analysis. 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 BKNG 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 BKNG with different methods and assumptions, so the two conclusions can differ. Compare the DCF intrinsic value.
Price as of 2026-10-27. Financial data from Financial Modeling Prep (trailing twelve months) · Valuation methodology by Charlie Wang.
This is an estimate, not investment advice.