Priceline Group Inc ($PCLN) Possible Buy to $1400 Confident Investor Rating: Good

Company name Priceline Group Inc
Stock ticker PCLN
Live stock price [stckqut]PCLN[/stckqut]
P/E compared to competitors Good

MANAGEMENT EXECUTION

Employee productivity Good
Sales growth Good
EPS growth Good
P/E growth Good
EBIT growth Good

ANALYSIS

Confident Investor Rating Good
Target stock price (TWCA growth scenario) $1790.33
Target stock price (averages with growth) $2362.88
Target stock price (averages with no growth) $1561.02
Target stock price (manual assumptions) $1531.5

The following company description is from Google Finance: http://www.google.com/finance?q=pcln

Priceline Group Inc, formerly Priceline Com Incorporated, incorporated on July 30, 1998, is an online travel company that offers its customers hotel room reservations at over 295,000 hotels worldwide through the Booking.com, priceline.com and Agoda brands. In the United States, the Company also offers its customers reservations for car rentals, airline tickets, vacation packages, destination services and cruises through the priceline.com brand. It offers car rental reservations worldwide through rentalcars.com. During the year ended December 31, 2012, its international business (the majority of which is generated by Booking.com) represented approximately 82% of its gross bookings (an operating and statistical metric referring to the total dollar value, generally inclusive of all taxes and fees, of all travel services purchased by its customers), and approximately 92% of its consolidated operating income.

 

Confident Investor comments: At this price and at this time, I think that a Confident Investor can confidently invest in Priceline Group Inc.

If you would like to understand how to evaluate companies like I do on this site, please read my book, The Confident Investor. You can review the best companies that I have found (and I probably invest my own money in most of these companies) in my Watch List.

How was this analysis of Priceline Group Inc calculated?

For owners of my book, “The Confident Investor” I offer the following analysis (you must be logged in to this site as a book owner in order to see the following analysis). If you have registered and cannot see the balance of this article, make sure you are logged in and refresh your browser.
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In order to assist you in using the techniques of this book, the values that I used when calculating the Manual pricing above were:

Stock price at the time of the calculation: $1158.79

Growth: 0.17

Current EPS (TTM): $37.5

P/E: 30

Future EPS Calc: $82.21

Future Stock Price Calc: $2466.5

Target stock price: $1531.5

I hope that this makes you a better investor. [/s2If]

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