We think Booking Holdings Inc ($BKNG) is a Cautious Buy or Hold and it currently should be priced at $1732. It has a Confident Investor Rating of Fair
| Company name | Booking Holdings Inc |
| Stock ticker | BKNG |
| Live stock price | [stckqut]BKNG[/stckqut] |
| P/E compared to competitors | Good |
MANAGEMENT EXECUTION
| Employee productivity | Poor |
| Sales growth | Fair |
| EPS growth | Good |
| P/E growth | Poor |
| EBIT growth | Good |
| Price growth | Fair |
| R&D growth | Good |
| Income growth | Good |
| Assets growth | Good |
| Return on Assets growth | Good |
| Income / Rev growth | Fair |
| TWCA Plus | Good |
| Standard TWCA | Fair |
| Weighted ann. stock price increase | Poor |
ANALYSIS
| Confident Investor Rating | Fair |
| Target stock price (TWCA growth scenario) | $2225.37 |
| Target stock price (averages with growth) | $1634.94 |
| Target stock price (averages with no growth) | $1814.14 |
| Target stock price (manual assumptions) | $1732.53 |
The following company description is from Reuters: https://finance.yahoo.com/quote/bkng/profile?p=bkng
Booking Holdings Inc. provides travel and restaurant online reservation and related services worldwide. The company operates Booking.com, which connects travellers with a selection of places to stay, including apartments, vacation homes, family-run B&Bs, 5-star luxury resorts, tree houses, and igloos; and KAYAK that searches other sites to show travellers the information they need to find the right flights, hotels, rental cars, and vacation packages. It also operates Priceline, an online travel deal service, which provides travellers to save on hotel rooms, airline tickets, rental cars, vacation packages, and cruises; Agoda, which provides online accommodation reservation services. In addition, the company operates Rentalcars.com that offers online rental car reservation services; and OpenTable, an online provider of restaurant reservation services to consumers and restaurant reservation management services to restaurants. Further, it offers travel-related insurance products. The company was formerly known as The Priceline Group Inc. and changed its name to Booking Holdings Inc. in February 2018. Booking Holdings Inc. was founded in 1997 and is headquartered in Norwalk, Connecticut.
Confident Investor comments: At this time, I think that a Confident Investor can cautiously invest in Booking Holdings Inc as long as the price is correct and the indicators that I describe in my book The Confident Investor are favorable. Most of the fundamentals of this company are good but there are some concerns. Because of Booking’s relatively poor performance and the outlook for travel and entertainment in the next 12 months, I am taking the stock off of my Watch List to make room for other companies.
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 Booking Holdings 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: $1742.64
- Growth: 0.120202036147264
- Current EPS (TTM): $80.1883333333334
- P/E: 19.7265007512436
- Future EPS Calc: $141.44
- Future Stock Price Calc: $2790.24
- Target stock price: $1732.52
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I hope that this makes you a Confident Investor.