Stock Analysis on Net

Booking Holdings Inc. (NASDAQ:BKNG)

$24.99

Price to Earnings (P/E)
since 2005

Microsoft Excel

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Calculation

Booking Holdings Inc., P/E, long-term trends, calculation

Microsoft Excel

Based on: 10-K (reporting date: 2025-12-31), 10-K (reporting date: 2024-12-31), 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31), 10-K (reporting date: 2018-12-31), 10-K (reporting date: 2017-12-31), 10-K (reporting date: 2016-12-31), 10-K (reporting date: 2015-12-31), 10-K (reporting date: 2014-12-31), 10-K (reporting date: 2013-12-31), 10-K (reporting date: 2012-12-31), 10-K (reporting date: 2011-12-31), 10-K (reporting date: 2010-12-31), 10-K (reporting date: 2009-12-31), 10-K (reporting date: 2008-12-31), 10-K (reporting date: 2007-12-31), 10-K (reporting date: 2006-12-31), 10-K (reporting date: 2005-12-31).

1 US$

2 Data adjusted for splits and stock dividends.

3 Closing price as at the filing date of Booking Holdings Inc. Annual Report.


The price-to-earnings (P/E) ratio for the observed period exhibits considerable fluctuation. Initially, the ratio demonstrates an increase from 4.89 in 2006 to a peak of 42.86 in 2011. Following this peak, the ratio generally decreased, reaching a low of 14.16 in 2020. A significant outlier occurred in 2021, with a P/E ratio of 1,696.44, before returning to more moderate levels in subsequent years.

Early Growth (2006-2011)
From 2006 to 2011, the P/E ratio increased substantially. This suggests a growing investor confidence in the company’s earnings potential, or potentially, an overvaluation of the share price relative to earnings. The increase was not consistent year-over-year, but the overall trend is clearly upward.
Period of Moderation (2011-2020)
Between 2011 and 2020, the P/E ratio experienced a general decline, with fluctuations. This could indicate a stabilization of investor expectations, a more realistic valuation of the company, or slower earnings growth relative to the share price. The ratio remained within a range of approximately 14 to 38 during this period.
2021 Anomaly
The year 2021 presents a dramatic increase in the P/E ratio. This is primarily attributable to a significant decrease in earnings per share (EPS) while the share price remained relatively high. This resulted in a highly inflated P/E ratio, suggesting a substantial disconnect between market price and reported earnings for that year.
Recent Trends (2022-2026)
Following the 2021 outlier, the P/E ratio decreased to 29.87 in 2022, then increased to 31.09 in 2023, and settled at 28.00 in 2024. The projected ratio for 2025 is 25.03, indicating a continued moderation. These recent values suggest a return to a more typical valuation range, though still higher than the levels observed in the 2014-2020 timeframe.

Overall, the P/E ratio demonstrates a dynamic relationship with both share price and earnings per share. The substantial variation observed, particularly the 2021 anomaly, highlights the importance of considering underlying earnings when interpreting the P/E ratio. The recent trend suggests a stabilization, but continued monitoring is warranted to assess the long-term valuation of the company.


Comparison to Competitors

Booking Holdings Inc., P/E, long-term trends, comparison to competitors

Microsoft Excel

Based on: 10-K (reporting date: 2025-12-31), 10-K (reporting date: 2024-12-31), 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31), 10-K (reporting date: 2018-12-31), 10-K (reporting date: 2017-12-31), 10-K (reporting date: 2016-12-31), 10-K (reporting date: 2015-12-31), 10-K (reporting date: 2014-12-31), 10-K (reporting date: 2013-12-31), 10-K (reporting date: 2012-12-31), 10-K (reporting date: 2011-12-31), 10-K (reporting date: 2010-12-31), 10-K (reporting date: 2009-12-31), 10-K (reporting date: 2008-12-31), 10-K (reporting date: 2007-12-31), 10-K (reporting date: 2006-12-31), 10-K (reporting date: 2005-12-31).


Comparison to Sector (Consumer Services)


Comparison to Industry (Consumer Discretionary)