ABNB - Embedded Expectations Analysis - 2021 11 09
Airbnb, Inc. (ABNB) currently trades above historical but near corporate averages relative to Uniform earnings, with an 21.3x Uniform P/E (Fwd. V/E').At these levels, markets are pricing in expectations for Uniform ROA to expand to 51%, accompanied by 7% Uniform asset growth.
Similarly, analysts expect Uniform ROA to expand to 37% by 2022, accompanied by 131% Uniform asset growth due to the firm's recent IPO.
If sustained going forward, these levels would imply significant potential equity upside for the firm. That said, it is not uncommon to see substantial asset growth for a firm following an IPO, and does not imply this growth will continue.
Moreover, the firm's most recent earnings call suggests management may have concerns about travel trends, product capabilities, and their long-term business outlook.
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