BKNG

Booking Holdings Inc

TMT


Presented:02/21/2013
Price:$688.20
Cap:$34.32B
Current Price:$4,307.77
Cap:$144.42B

Presented

Date02/21/2013
Price$688.20
Market Cap$34.32B
Ent Value$31.23B
P/E Ratio26.63x
Book Value$164.96
Div YieldN/A
Shares O/S49.90M
Ave Daily Vol590,000
Short Int5.42%

Current

Price$4,307.77
Market Cap$144.42B
Booking Holdings Inc is an online travel company, which provides consumers accommodation reservations including hotels, bed and breakfasts, hostels, apartments, vacation rentals and other properties through its Booking.com, priceline.com and agoda.com brands. Its priceline.com brand also offers consumers reservations for rental cars, airline tickets, vacation packages and cruises. The company also allows consumers to easily compare airline ticket, hotel reservation and rental car reservation information from hundreds of travel websites at once through KAYAK. It provides services in Europe, North America, South America, the Asia-Pacific region, the Middle East and Africa. The Priceline Group was founded by Jay Scott Walker on July 18, 1997 and is headquartered in Norwalk, CT.

Please note, on 02/23/18 The Priceline Group, Inc. (PCLN) changed it’s company name and ticker to Booking Holdings Inc. (BKNG). The content of this idea will make reference to the original company name and ticker symbol.

Highlights

The presenter outlined his bullish thesis on PCLN, which is centered on the growth of online bookings. With the current rates of penetration at 40% in the US, 30% in Europe, and 20% in Asia, he sees a long runway for PCLN to grow bookings and revenue as the trend toward online bookings continues (despite overall hotel bookings growing roughly in line with GDP, online bookings are growing in the mid-high 20%s). If PCLN can defy the bear case (more on this below) and continue to show growth in operating income in the 20% range, the multiple will not compress and a 13x-14x 2013 EBIT multiple could reasonably expand to 20x (PCLN could be worth $1,000 in the next 12-18 months under this scenario).

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Idea Discussion

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