EXPE

Expedia Group Inc

TMT, Consumer


Presented:06/13/2024
Price:$123.42
Cap:$16.35B
Current Price:$151.20
Cap:$19.68B

Presented

Date06/13/2024
Price$123.42
Market Cap$16.35B
Ent Value$18.82B
P/E Ratio23.16x
Book Value$6.67
Div Yield0%
Shares O/S132.47M
Ave Daily Vol2,389,851
Short IntN/A

Current

Price$151.20
Market Cap$19.68B
Expedia Group, Inc. is an online travel company, which engages in the provision of travel products and services to leisure and corporate travelers. It operates through the following segments: B2C, B2B, and Trivago. The B2C segment offers a full range of travel and advertising services to worldwide customers through a variety of consumer brands. The B2B segment refers to a wide range of travel and non-travel companies including airlines, offline travel agents, online retailers, corporate travel management, and financial institutions. The Trivago segment generates advertising revenue primarily from sending referrals to online travel companies and travel service providers from hotel metasearch websites. The company was founded in 1994 and is headquartered in Seattle, WA.

Publicly traded companies mentioned herein: Booking Holdings Inc (BKNG), Expedia Group Inc (EXPE)

Highlights

The presenter is long shares of Expedia Group Inc (EXPE), noting that the company’s EV is roughly flat from 2015 despite its revenue more than doubling from $6.5B to $14B and EBITDA almost tripling from $1.1B to $2.8B over that period. The stock is down significantly YTD, driven by major drops on Q4’23 earnings in February and Q1’24 earnings in May that included disappointing B2C results and the announcement of a CEO change. Yet, he thinks highly of new CEO Ariane Gorin and feels the market is misunderstanding the B2C trend. The stock currently trades at an abnormally wide discount to BKNG, and the current 6.5x valuation on his 2025 EBITDA represents a unique opportunity for a company with a strong balance sheet and aggressive buyback activity that is growing revenue MSD%, EBITDA LDD%, and EPS 20%+.

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Idea Discussion

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