Using the industry peer median P/E multiple (trailing + forward), Booking Holdings Inc. (BKNG) has a fair value of $4,891.91 based on 6 comparable companies in the Travel Services industry.
USD in millions except Fair Price. Subject company highlighted.
| Mkt Cap ($M) | Trailing P/E | Forward P/E | |
|---|---|---|---|
| Booking Holdings Inc.BKNG | 136,895 | 25.3x | 15.6x |
| McDonald's CorporationMCD | 221,367 | 26.0x | 23.5x |
| The TJX Companies, Inc.TJX | 176,434 | 32.5x | 33.8x |
| Lowe's Companies, Inc.LOW | 132,177 | 19.9x | 18.7x |
| Airbnb, Inc.ABNB | 78,321 | 32.4x | 26.3x |
| Royal Caribbean Cruises Ltd.RCL | 74,789 | 17.6x | 15.2x |
| Expedia Group, Inc.EXPE | 27,371 | 23.8x | 12.2x |
| Industry Median | 24.9x | 21.1x | |
| (*) Profit after tax | 5,404 | 8,767 | |
| Equity Value | 134,569 | 184,765 | |
| (/) Outstanding shares | 33 | 33 | |
| Fair Price | $4123 | $5661 | |
This P/E relative valuation uses the industry peer median Price-to-Earnings ratio to estimate fair value. Both trailing (last 12 months) and forward (next fiscal year analyst estimates) P/E multiples are computed independently.
The industry median trailing P/E is applied to the company's TTM net income, and the forward P/E to analyst-estimated net income. Each produces an equity value divided by shares outstanding to yield a fair price per share. The selected fair value is the average of the trailing and forward legs.