Expedia Group, Inc. (EXPE) Stock Valuation — PE Analysis
Travel Services · NASDAQ
Current Price
$224.89
PE Ratio (TTM)
18.4x
Intrinsic Value
$379.02
+40.7% margin of safety
COMPETITIVE MOAT
↑Vast Brand Portfolio
Expedia owns multiple well-known travel brands like Expedia.com, Hotels.com, and Vrbo. This diverse portfolio captures different customer segments and booking preferences.
↑Network Effects in Marketplaces
More travelers attract more suppliers (hotels, airlines), and more suppliers attract more travelers. This creates a virtuous cycle, making it harder for new entrants to compete.
↑Data and AI Capabilities
Expedia leverages vast amounts of traveler data to personalize offerings and improve booking experiences. Recent research highlights traveler demand for full trip planning, an area where AI can provide a competitive edge.
INVESTMENT RISKS
↓Intense Competition
The online travel agency market is highly competitive with players like Booking Holdings and direct bookings from airlines and hotels. This can lead to price wars and margin pressure.
↓Dependence on Third-Party Suppliers
Expedia relies heavily on airlines, hotels, and car rental companies for inventory. Any disruption in these partnerships or changes in their distribution strategies can impact bookings.
↓Economic Sensitivity
Travel spending is discretionary and highly sensitive to economic downturns, inflation, and geopolitical events. Macroeconomic shocks can significantly reduce consumer demand for travel services.
Base case
EXPE base case PE valuation
A base case PE valuation for EXPE estimates a fair value of about $379.02 per share, against a current price of $224.89. The model assumes 17.4% annual earnings growth, a 18x target PE multiple, and a 10% discount rate.
Intrinsic Value
$379.02
Margin of safety
+40.7%
Expected annual return
+11.0%
Base case assumptions: 17.4% annual earnings growth, 18x 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 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)
18.4x
PEG Ratio
0.55
Earnings Yield
5.43%
ROE (TTM)
147.6%
Revenue/Share (TTM)
$124.53
Dividend Yield
0.78%
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 18.4x combined with a PEG ratio of 0.55 provides a growth-adjusted perspective. A PEG below 1.0 suggests EXPE may be undervalued relative to its 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 (18.4x) against the Travel Services median to assess relative pricing, (2) check the PEG ratio (0.55) 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 0.55, calculated by dividing the PE ratio (18.4x) by the expected earnings growth rate. A PEG below 1.0 is traditionally considered a sign of undervaluation — the market may not be fully pricing in the growth potential. 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 2026-06-12. Financial data from Financial Modeling Prep (trailing twelve months) · Valuation methodology by Charlie Wang.
This is an estimate, not investment advice.