BKNG - Embedded Expectations Analysis - 2018 08 27
Booking Holdings Inc. (BKNG:USA) currently trades above recent averages relative to UAFRS-based (Uniform) Earnings, with a 19.0x UAFRS-based P/E. However, even at these levels, the market has bearish expectations for the firm, and management is concerned about their strategies and investments, particularly in international marketsSpecifically, management may lack confidence in their ability to execute long-term strategies, and in their new positioning as a holistic travel experience company. Moreover, they may lack confidence in their ability to realize a favorable return from their investment in DiDi technology, and in their ability to manage inventory with their Chinese partners. Additionally, they may be exaggerating their confidence that their growth opportunities are better than average in Europe. Also, they may lack confidence in their ability to develop certain categories in the non-hotel accommodation (NHA) market, and they may lack confidence in their ability to use brand advertising to build a larger direct business.
Booking Holdings provides travel and restaurant online reservation and related services. The company's brands include: Booking.com and Rentalcars.com, in which Booking.com provides booking online accommodation reservations, based on room nights booked, and Rentalcars.com provides online rental car reservation services; KAYAK, which provides an online price comparison service; Priceline, which provides consumers hotel, rental car and airline ticket reservation services, and vacation packages and cruises; Agoda, which is an online accommodation reservation service; and OpenTable, which provides online restaurant reservation services to consumers and reservation management services to restaurants.
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