Common Stock Valuation Ratios (Price Multiples)
Valuation ratios measure the quantity of an asset or flaw (e.g., earnings) associated with ownership of a specified claim (e.g., a share of ownership of the enterprise).
Current Valuation Ratios
Booking Holdings Inc., current price multiples
| Booking Holdings Inc. | Airbnb Inc. | Chipotle Mexican Grill Inc. | DoorDash, Inc. | McDonald’s Corp. | Starbucks Corp. | Consumer Services | Consumer Discretionary | ||||
|---|---|---|---|---|---|---|---|---|---|---|---|
| Selected Financial Data | |||||||||||
| Current share price (P) | $4,381.39 | ||||||||||
| No. shares of common stock outstanding | 31,673,346 | ||||||||||
| Growth rate (g) | 83.75% | ||||||||||
| Earnings per share (EPS) | $170.62 | ||||||||||
| Next year expected EPS | $313.50 | ||||||||||
| Operating profit per share | $278.63 | ||||||||||
| Sales per share | $849.83 | ||||||||||
| Book value per share (BVPS) | $-176.11 | ||||||||||
| Valuation Ratios (Price Multiples) | |||||||||||
| Price to earnings (P/E) | 25.68 | 31.79 | 27.68 | 76.66 | 26.19 | 56.87 | 31.85 | 40.57 | |||
| Price to next year expected earnings | 13.98 | 24.50 | 19.71 | 82.38 | — | — | 8.78 | 33.06 | |||
| Price-earnings-growth (PEG) | 0.31 | 1.07 | 0.68 | — | — | — | 0.12 | 1.79 | |||
| Price to operating profit (P/OP) | 15.73 | 31.38 | 21.96 | 99.14 | 18.10 | 35.95 | 22.57 | 34.43 | |||
| Price to sales (P/S) | 5.16 | 6.52 | 3.56 | 5.23 | 8.34 | 2.84 | 5.14 | 3.19 | |||
Based on: 10-K (reporting date: 2025-12-31).
If the company price multiple is lower then the price multiple of benchmark then company stock is relatively undervalued.
Otherwise, if the company price multiple is higher then the price multiple of benchmark then company stock is relatively overvalued.
Historical Valuation Ratios (Summary)
Booking Holdings Inc., historical price multiples
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).
The valuation ratios demonstrate considerable fluctuation over the five-year period. A general trend toward lower multiples is apparent, though not consistent across all metrics. Significant shifts occurred between 2021 and 2022, followed by more moderate changes in subsequent years.
- Price to Earnings (P/E)
- The Price to Earnings ratio experienced a substantial decrease from 86.68 in 2021 to 29.87 in 2022. Following this decline, the ratio exhibited relative stability, fluctuating between 31.09 and 28.00 for 2022 through 2024, before decreasing further to 25.03 in 2025. This suggests a diminishing premium investors were willing to pay for each dollar of earnings.
- Price to Operating Profit (P/OP)
- Similar to the P/E ratio, Price to Operating Profit decreased significantly from 40.46 in 2021 to 17.91 in 2022. The ratio then increased to 22.85 in 2023, followed by a slight decrease to 21.80 in 2024, and a more pronounced decrease to 15.33 in 2025. This pattern indicates a changing relationship between market valuation and the company’s operating profitability.
- Price to Sales (P/S)
- The Price to Sales ratio also decreased substantially from 9.22 in 2021 to 5.35 in 2022. It then increased to 6.24 in 2023 and 6.94 in 2024, before declining again to 5.02 in 2025. This suggests that the market’s valuation relative to revenue has been volatile, but generally lower in later periods compared to 2021.
- Price to Book Value (P/BV)
- The Price to Book Value ratio increased from 16.35 in 2021 to 32.84 in 2022. Values for 2023, 2024, and 2025 are not available, preventing assessment of any subsequent trends. The initial increase suggests a heightened investor perception of the company’s asset value relative to its book value in 2022.
Overall, the observed trends indicate a decrease in valuation multiples from 2021 to 2025, particularly for earnings and operating profit. The Price to Sales ratio shows more fluctuation, while the Price to Book Value ratio lacks sufficient information for a complete trend analysis.
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Price to Earnings (P/E)
Booking Holdings Inc., historical P/E calculation, comparison to benchmarks
| Dec 31, 2025 | Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | ||
|---|---|---|---|---|---|---|
| No. shares of common stock outstanding1 | 31,673,346 | 32,815,201 | 34,171,027 | 37,648,373 | 40,887,702 | |
| Selected Financial Data (US$) | ||||||
| Net income (in millions) | 5,404) | 5,882) | 4,289) | 3,058) | 1,165) | |
| Earnings per share (EPS)2 | 170.62 | 179.25 | 125.52 | 81.23 | 28.49 | |
| Share price1, 3 | 4,269.99 | 5,018.23 | 3,901.99 | 2,426.49 | 2,469.83 | |
| Valuation Ratio | ||||||
| P/E ratio4 | 25.03 | 28.00 | 31.09 | 29.87 | 86.68 | |
| Benchmarks | ||||||
| P/E Ratio, Competitors5 | ||||||
| Airbnb Inc. | 28.11 | 33.58 | 20.59 | 44.53 | — | |
| Chipotle Mexican Grill Inc. | 33.86 | 50.81 | 58.48 | 49.37 | 67.03 | |
| DoorDash, Inc. | 80.56 | 728.78 | — | — | — | |
| McDonald’s Corp. | 27.63 | 27.00 | 25.23 | 31.22 | 24.15 | |
| Starbucks Corp. | 51.93 | 29.62 | 29.09 | 34.26 | 30.95 | |
| P/E Ratio, Sector | ||||||
| Consumer Services | 32.02 | 34.04 | 30.62 | 39.20 | 46.48 | |
| P/E Ratio, Industry | ||||||
| Consumer Discretionary | 96.58 | 39.33 | 33.63 | 46.01 | 39.27 | |
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).
1 Data adjusted for splits and stock dividends.
2 2025 Calculation
EPS = Net income ÷ No. shares of common stock outstanding
= 5,404,000,000 ÷ 31,673,346 = 170.62
3 Closing price as at the filing date of Booking Holdings Inc. Annual Report.
4 2025 Calculation
P/E ratio = Share price ÷ EPS
= 4,269.99 ÷ 170.62 = 25.03
5 Click competitor name to see calculations.
The price to earnings (P/E) ratio exhibited considerable fluctuation over the five-year period. Initially high, the ratio decreased substantially before stabilizing and then declining modestly. This movement correlates with significant changes in both share price and earnings per share.
- P/E Ratio Trend
- The P/E ratio began at 86.68 in 2021. A marked decrease was observed in 2022, falling to 29.87. This decline continued into 2023, reaching 31.09, before stabilizing at 28.00 in 2024. A slight downward trend resumed in 2025, with the ratio closing at 25.03.
- Share Price Behavior
- The share price experienced a minor decrease from US$2,469.83 in 2021 to US$2,426.49 in 2022. A substantial increase occurred in 2023, rising to US$3,901.99. Further growth was seen in 2024, reaching US$5,018.23, followed by a decrease to US$4,269.99 in 2025.
- Earnings Per Share (EPS) Progression
- Earnings per share demonstrated a significant increase throughout the period. From US$28.49 in 2021, EPS rose dramatically to US$81.23 in 2022. Continued growth was evident in 2023 (US$125.52) and 2024 (US$179.25). While still high, EPS experienced a modest decline in 2025, settling at US$170.62.
The initial high P/E ratio in 2021 suggests investors were willing to pay a substantial premium for each dollar of earnings. The subsequent decrease in the P/E ratio in 2022 and 2023, despite rising share price, indicates that earnings growth began to catch up with investor expectations. The stabilization and slight decline in the P/E ratio in 2024 and 2025, coupled with continued high EPS, may suggest a more balanced valuation as of the end of the period.
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Price to Operating Profit (P/OP)
Booking Holdings Inc., historical P/OP calculation, comparison to benchmarks
| Dec 31, 2025 | Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | ||
|---|---|---|---|---|---|---|
| No. shares of common stock outstanding1 | 31,673,346 | 32,815,201 | 34,171,027 | 37,648,373 | 40,887,702 | |
| Selected Financial Data (US$) | ||||||
| Operating income (in millions) | 8,825) | 7,555) | 5,835) | 5,102) | 2,496) | |
| Operating profit per share2 | 278.63 | 230.23 | 170.76 | 135.52 | 61.05 | |
| Share price1, 3 | 4,269.99 | 5,018.23 | 3,901.99 | 2,426.49 | 2,469.83 | |
| Valuation Ratio | ||||||
| P/OP ratio4 | 15.33 | 21.80 | 22.85 | 17.91 | 40.46 | |
| Benchmarks | ||||||
| P/OP Ratio, Competitors5 | ||||||
| Airbnb Inc. | 27.75 | 34.83 | 65.01 | 46.78 | 232.24 | |
| Chipotle Mexican Grill Inc. | 26.87 | 40.67 | 46.13 | 38.25 | 54.38 | |
| DoorDash, Inc. | 104.18 | — | — | — | — | |
| McDonald’s Corp. | 19.09 | 18.95 | 18.35 | 20.58 | 17.59 | |
| Starbucks Corp. | 32.83 | 20.60 | 20.44 | 24.35 | 26.68 | |
| P/OP Ratio, Sector | ||||||
| Consumer Services | 22.69 | 25.92 | 26.47 | 26.12 | 32.01 | |
| P/OP Ratio, Industry | ||||||
| Consumer Discretionary | 81.96 | 31.45 | 29.18 | 27.24 | 41.03 | |
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).
1 Data adjusted for splits and stock dividends.
2 2025 Calculation
Operating profit per share = Operating income ÷ No. shares of common stock outstanding
= 8,825,000,000 ÷ 31,673,346 = 278.63
3 Closing price as at the filing date of Booking Holdings Inc. Annual Report.
4 2025 Calculation
P/OP ratio = Share price ÷ Operating profit per share
= 4,269.99 ÷ 278.63 = 15.33
5 Click competitor name to see calculations.
The Price to Operating Profit (P/OP) ratio exhibited considerable fluctuation over the five-year period. Initially, the ratio was high, then decreased substantially before stabilizing and decreasing again. This movement correlates with changes in both share price and operating profit per share.
- Overall Trend
- The P/OP ratio began at 40.46 in 2021, decreased significantly to 17.91 in 2022, then increased to 22.85 in 2023. A slight decrease to 21.80 was observed in 2024, followed by a more pronounced decrease to 15.33 in 2025. This suggests a decreasing valuation relative to operating profit in the most recent year.
- Share Price Influence
- The share price increased from US$2,469.83 in 2021 to US$3,901.99 in 2023, contributing to the initial decrease in the P/OP ratio in 2022 as operating profit per share increased more rapidly. The subsequent increase in share price to US$5,018.23 in 2024, coupled with continued growth in operating profit per share, resulted in a slight decrease in the P/OP ratio. The decrease in share price to US$4,269.99 in 2025, alongside further growth in operating profit per share, drove the P/OP ratio lower.
- Operating Profit per Share Influence
- Operating profit per share demonstrated consistent growth throughout the period, increasing from US$61.05 in 2021 to US$278.63 in 2025. This growth partially offset the impact of share price increases on the P/OP ratio, particularly in 2022 and 2023. The substantial growth in operating profit per share contributed to the overall downward trend in the P/OP ratio, especially in the later years.
The combined effect of share price and operating profit per share movements resulted in a notable shift in the P/OP ratio. The ratio’s decline suggests that the market valuation, relative to operating profitability, has decreased over the observed timeframe.
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Price to Sales (P/S)
Booking Holdings Inc., historical P/S calculation, comparison to benchmarks
| Dec 31, 2025 | Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | ||
|---|---|---|---|---|---|---|
| No. shares of common stock outstanding1 | 31,673,346 | 32,815,201 | 34,171,027 | 37,648,373 | 40,887,702 | |
| Selected Financial Data (US$) | ||||||
| Revenues (in millions) | 26,917) | 23,739) | 21,365) | 17,090) | 10,958) | |
| Sales per share2 | 849.83 | 723.41 | 625.24 | 453.94 | 268.00 | |
| Share price1, 3 | 4,269.99 | 5,018.23 | 3,901.99 | 2,426.49 | 2,469.83 | |
| Valuation Ratio | ||||||
| P/S ratio4 | 5.02 | 6.94 | 6.24 | 5.35 | 9.22 | |
| Benchmarks | ||||||
| P/S Ratio, Competitors5 | ||||||
| Airbnb Inc. | 5.77 | 8.01 | 9.95 | 10.04 | 16.64 | |
| Chipotle Mexican Grill Inc. | 4.36 | 6.89 | 7.28 | 5.14 | 5.80 | |
| DoorDash, Inc. | 5.49 | 8.36 | 5.40 | 3.23 | 7.30 | |
| McDonald’s Corp. | 8.80 | 8.56 | 8.38 | 8.32 | 7.85 | |
| Starbucks Corp. | 2.59 | 3.08 | 3.34 | 3.49 | 4.47 | |
| P/S Ratio, Sector | ||||||
| Consumer Services | 5.17 | 6.34 | 6.15 | 5.69 | 7.25 | |
| P/S Ratio, Industry | ||||||
| Consumer Discretionary | 7.60 | 3.45 | 2.63 | 2.27 | 3.57 | |
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).
1 Data adjusted for splits and stock dividends.
2 2025 Calculation
Sales per share = Revenues ÷ No. shares of common stock outstanding
= 26,917,000,000 ÷ 31,673,346 = 849.83
3 Closing price as at the filing date of Booking Holdings Inc. Annual Report.
4 2025 Calculation
P/S ratio = Share price ÷ Sales per share
= 4,269.99 ÷ 849.83 = 5.02
5 Click competitor name to see calculations.
The price to sales ratio exhibited considerable fluctuation over the five-year period. Initially, a decrease in the ratio was observed, followed by a period of relative stability and then another decline.
- Price to Sales Ratio - Overall Trend
- The price to sales ratio began at 9.22 in 2021. A substantial decrease was recorded in 2022, falling to 5.35. The ratio then increased moderately to 6.24 in 2023 and further to 6.94 in 2024. Finally, the ratio decreased to 5.02 in 2025.
- Price to Sales Ratio - 2021-2022
- The most significant change occurred between 2021 and 2022, with the price to sales ratio declining by approximately 42%. This decrease coincided with a substantial increase in sales per share, suggesting that while the share price decreased slightly, sales growth outpaced it, resulting in a lower ratio.
- Price to Sales Ratio - 2024-2025
- A decrease in the price to sales ratio was observed between 2024 and 2025, moving from 6.94 to 5.02. This decline occurred despite continued growth in sales per share, indicating a more pronounced decrease in share price during this period.
- Relationship to Share Price and Sales per Share
- The price to sales ratio’s movements appear to be influenced by the interplay between share price and sales per share. The increase in the ratio from 2022 to 2024 suggests share price growth exceeded the growth in sales per share. Conversely, the decrease in 2025 indicates share price declined at a faster rate than sales per share.
In summary, the price to sales ratio demonstrates a dynamic relationship with both share price and sales per share, experiencing a notable initial decline followed by fluctuations and a final decrease. These changes suggest shifts in investor sentiment or market conditions impacting the valuation of the company relative to its sales.
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Price to Book Value (P/BV)
Booking Holdings Inc., historical P/BV calculation, comparison to benchmarks
| Dec 31, 2025 | Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | ||
|---|---|---|---|---|---|---|
| No. shares of common stock outstanding1 | 31,673,346 | 32,815,201 | 34,171,027 | 37,648,373 | 40,887,702 | |
| Selected Financial Data (US$) | ||||||
| Stockholders’ equity (deficit) (in millions) | (5,578) | (4,020) | (2,744) | 2,782) | 6,178) | |
| Book value per share (BVPS)2 | -176.11 | -122.50 | -80.30 | 73.89 | 151.10 | |
| Share price1, 3 | 4,269.99 | 5,018.23 | 3,901.99 | 2,426.49 | 2,469.83 | |
| Valuation Ratio | ||||||
| P/BV ratio4 | — | — | — | 32.84 | 16.35 | |
| Benchmarks | ||||||
| P/BV Ratio, Competitors5 | ||||||
| Airbnb Inc. | 8.61 | 10.57 | 12.09 | 15.16 | 20.88 | |
| Chipotle Mexican Grill Inc. | 18.37 | 21.32 | 23.47 | 18.74 | 19.05 | |
| DoorDash, Inc. | 7.51 | 11.49 | 6.85 | 3.15 | 7.65 | |
| McDonald’s Corp. | — | — | — | — | — | |
| Starbucks Corp. | — | — | — | — | — | |
| P/BV Ratio, Sector | ||||||
| Consumer Services | 119.02 | 163.88 | 264.40 | 198.47 | 74.08 | |
| P/BV Ratio, Industry | ||||||
| Consumer Discretionary | 20.27 | 11.08 | 10.06 | 9.41 | 13.21 | |
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).
1 Data adjusted for splits and stock dividends.
2 2025 Calculation
BVPS = Stockholders’ equity (deficit) ÷ No. shares of common stock outstanding
= -5,578,000,000 ÷ 31,673,346 = -176.11
3 Closing price as at the filing date of Booking Holdings Inc. Annual Report.
4 2025 Calculation
P/BV ratio = Share price ÷ BVPS
= 4,269.99 ÷ -176.11 = —
5 Click competitor name to see calculations.
The price to book value ratio exhibits a volatile pattern over the observed period. Initially, the ratio increased significantly before becoming undefined due to negative book values per share.
- Price to Book Value (P/BV)
- In 2021, the P/BV ratio stood at 16.35. This increased substantially to 32.84 in 2022. However, subsequent years demonstrate a concerning trend: the book value per share became negative, resulting in an undefined P/BV ratio for 2023, 2024, and 2025. This indicates that the market capitalization increasingly diverges from the net asset value of the company, and the traditional interpretation of this ratio is no longer applicable.
The share price demonstrated an initial decline from 2021 to 2022, followed by a significant increase in 2023 and 2024. However, the share price decreased in 2025. This price movement occurred concurrently with the dramatic shift in book value per share.
- Book Value Per Share (BVPS)
- The BVPS experienced a substantial decrease from US$151.10 in 2021 to US$73.89 in 2022. This decline continued into negative territory, reaching -US$80.30 in 2023, -US$122.50 in 2024, and further deteriorating to -US$176.11 in 2025. The consistent negative book value per share is a critical observation, signaling potential issues with asset valuation or significant accumulated losses.
The combination of increasing share price and decreasing, ultimately negative, book value per share suggests a growing disconnect between market perception and the company’s net asset position. The P/BV ratio, while initially increasing, lost its analytical relevance as the book value per share became negative.
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