Airbnb Inc. (NASDAQ:ABNB)

The analysis of the financial ratios over the observed periods reveals notable trends and fluctuations in valuation multiples. These ratios provide insight into market perceptions relative to the company's earnings, operating profit, sales, and book value.

Price to Earnings (P/E) Ratio

The P/E ratio demonstrates a general decline from a high of 96.17 in the first quarter of 2022 to lower levels by mid-2023, reaching a trough of 14.19 in the third quarter of 2023. Subsequently, it exhibits volatility, increasing sharply to 50.83 by the third quarter of 2024 before declining again to values around 30 towards mid-2025. This pattern suggests fluctuating investor confidence or earnings variability, with periods of relative undervaluation followed by spikes indicating possible optimism or earnings compression.

Price to Operating Profit (P/OP) Ratio

The P/OP ratio mirrors aspects of the P/E trend but shows distinct differences in magnitude and timing. It reduced sharply from 88.47 in early 2022 to a low near 34.45 in the third quarter of 2023, indicating improved operating profit relative to market price or market adjustment. Thereafter, it surged to a peak of 65.01 in the fourth quarter of 2023 and then gradually declined to stabilize in the low 30s by mid-2025. The wide fluctuations imply variability in operating profitability or market sentiment towards operating results over this timeframe.

Price to Sales (P/S) Ratio

The P/S ratio reflects a smoother declining trend compared to P/E and P/OP, starting at 11.65 in early 2022 and decreasing generally over the observed quarters to approximately 7 by mid-2025. Periodic minor fluctuations occur, including a modest rise in the fourth quarter of 2023, but the overall decline suggests that sales growth may have lagged behind market valuation or that revenue has been de-emphasized by investors relative to earnings or profit metrics.

Price to Book Value (P/BV) Ratio

This ratio also declines from an initial high of 16.27 in early 2022 to values close to 10 by mid-2025, with intermediate oscillations. Notably, a significant dip occurred in the third quarter of 2023 to 8.49 before partial recovery. The decreasing trend indicates a reducing premium of market price over book value, potentially reflecting investor reassessment of net asset worth or risks associated with the company's balance sheet.

Overall, the data depict a market valuation that has trended downward across several fundamental ratios over the three-year span, with pronounced volatility in earnings and operating profit valuations. This suggests changing market dynamics, investor sentiment, and possibly company performance variability. The steady decline in price-to-sales and price-to-book ratios hints at more subdued expectations for growth and asset valuation, while the P/E and P/OP fluctuations signal shifting confidence in profitability and earnings quality.

The analysis of the quarterly financial data reveals several noteworthy trends in the share price, earnings per share (EPS), and price-to-earnings (P/E) ratio over the observed periods.

Share Price

The share price exhibits fluctuations with a general upward momentum in certain intervals. Initially, there was a decline from $119.37 at the end of Q1 2022 to $92.02 by Q3 2022, followed by a recovery reaching a peak of $152.51 in Q4 2023. Subsequently, the price experienced volatility, declining to $130.47 in Q2 2024 before rebounding again towards the end of the observed period, though it remained below the previous peak.

Earnings Per Share (EPS)

EPS shows a rising trend through most of 2022 and early 2023, moving from $1.24 in Q1 2022 to a notable jump at $8.42 in Q3 2023. This spike is an outlier compared to prior steady growth and is followed by a slight decrease, stabilizing around $7.41 to $7.67 for the subsequent quarters. Toward the end of the timeline, EPS exhibits a decline to lower levels such as $2.9 and then somewhat recovers to around $4.22 by mid-2025, indicating variability in profitability per share across quarters.

Price-to-Earnings (P/E) Ratio

The P/E ratio demonstrates significant variability closely related to fluctuations in both share price and EPS. Initially, the ratio decreased from a high of 96.17 in early 2022 to around 14.19 in Q3 2023, correlating with a sharp increase in EPS that outpaced changes in share price. Thereafter, the P/E ratio experiences an increase again, suggesting periods where the share price rose faster than EPS or EPS declined. By mid-2025, the ratio stabilizes in the range of approximately 30, indicating moderate valuation levels relative to earnings.

Overall, the financial data indicates periods of sharp earnings growth and corresponding changes in market valuation, reflected by the P/E ratio adjustments. While share price volatility is evident, underlying earnings show episodes of strong improvement, followed by phase-related declines, which affect valuation metrics. The interplay between share price and EPS trends suggests that market perceptions and company performance contributed to the dynamic valuation environment observed during the timeline.

The analysis of the quarterly financial data reveals several notable trends in the company's performance and market valuation over the examined periods.

Share Price

The share price demonstrates considerable volatility throughout the observed timeframe. Initially, it declined from a high of approximately $119.37 to a low near $92.02 by the third quarter of 2022. Subsequently, there was a significant recovery with a peak reaching approximately $157.9 in the first quarter of 2024. However, this was followed by renewed fluctuations, ending the period under review around $130.5 in the second quarter of 2025. This pattern indicates sensitivity to market conditions or company-specific factors influencing investor sentiment.

Operating Profit Per Share

Operating profit per share shows a generally upward trajectory, increasing markedly from $1.35 in the first quarter of 2022 to a peak of $4.19 by the second quarter of 2025. The growth suggests improved operational efficiency or higher profitability on a per-share basis, with some quarterly variability but a clear positive trend overall.

Price to Operating Profit Ratio (P/OP)

The P/OP ratio displays significant fluctuations that inversely correlate to the movements in operating profit per share and share price. Early in the period, the ratio decreases from a high of 88.47 to levels as low as approximately 31.13 by mid-2025. Periods of lower ratio values coincide with higher operating profits per share, indicating potentially more attractive valuation levels relative to operational earnings. However, spikes in the P/OP ratio, such as near 65.01 at the end of 2023, suggest times when share prices outpaced growth in operating profit, possibly reflecting market exuberance or investor expectations.

Overall, the data reflects a company experiencing growth in operational earnings and fluctuating market valuation, with shares exhibiting volatility but sustained underlying profitability improvements. The shifting P/OP ratio underscores changing market perceptions of value in relation to the company’s earnings performance over time.

Share Price

The share price demonstrates notable volatility over the observed period. It started at 119.37 US$ in March 2022, decreased to a low of 92.02 US$ in September 2022, and then rebounded significantly, peaking at 157.9 US$ in March 2024. Subsequent quarters show fluctuation with a downward tendency, ending at 130.5 US$ in June 2025. This pattern indicates periods of market uncertainty and recovery phases within the timeframe.

Sales per Share

Sales per share exhibit a consistent and steady upward trend throughout the entire period. Starting at 10.24 US$ in March 2022, the metric increases quarter-on-quarter without any reversals, reaching 18.63 US$ by June 2025. This steady growth signals continuous revenue expansion on a per-share basis, reflecting potentially increasing operational efficiency or market demand.

Price-to-Sales (P/S) Ratio

The P/S ratio fluctuates considerably without a clear linear trend. It begins relatively high at 11.65 in March 2022, drops to a low of 6.92 by March 2025, indicating a significant compression in valuation multiples over time. Intermediate fluctuations occur, corresponding inversely to changes in share price and sales per share. This suggests that although sales per share grew steadily, the market's valuation multiple applied to sales decreased, possibly reflecting evolving investor sentiment, competitive dynamics, or expectations about future profitability.

The analysis of the quarterly financial metrics over the examined period reveals several notable trends and fluctuations in key valuation ratios and share price behavior.

Share Price

The share price exhibited considerable volatility, beginning at $119.37 in the first quarter of 2022. It then declined to a low near $92.02 by the third quarter of 2022, followed by a rebound to $152.51 by the fourth quarter of 2023, marking the highest point in the dataset. Notably, after peaking, the share price demonstrated a downward movement, reaching approximately $124.01 by the first quarter of 2025, indicating some retracement but remaining above earlier lows.

Book Value per Share (BVPS)

Bvps showed modest growth with some irregular patterns. Starting at $7.34, it generally increased to peak at $14.07 in the third quarter of 2023. After this peak, BVPS slightly decreased and stabilized near $12.52 by the first quarter of 2025. This increase in BVPS reflects an improvement in the company's net asset value on a per-share basis over the period.

Price-to-Book Value Ratio (P/BV)

The P/BV ratio demonstrated significant fluctuation, reflecting changing market sentiments relative to the company's book value. Starting at a high of 16.27 in early 2022, it dropped sharply to around 8.49 in the third quarter of 2023, coinciding with the BVPS peak. Subsequently, the ratio rose again to levels near 12 in late 2023 and then gradually declined towards approximately 10.42 by the first quarter of 2025. This pattern suggests periods where market valuations became more conservative relative to the company’s book value, particularly when BVPS surged.

Overall, the data indicate a company experiencing dynamic market valuation shifts with significant volatility in share price and valuation multiples. An increase in book value per share over the period signals strengthening underlying asset value, while the P/BV ratio’s fluctuations imply varying investor confidence and market expectations at different intervals.