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).
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- Balance Sheet: Assets
- Balance Sheet: Liabilities and Stockholders’ Equity
- Common-Size Balance Sheet: Liabilities and Stockholders’ Equity
- Analysis of Liquidity Ratios
- Analysis of Geographic Areas
- Enterprise Value (EV)
- Capital Asset Pricing Model (CAPM)
- Present Value of Free Cash Flow to Equity (FCFE)
- Price to Book Value (P/BV) since 2005
- Aggregate Accruals
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Current Valuation Ratios
Booking Holdings Inc., current price multiples
| Booking Holdings Inc. | Airbnb Inc. | Chipotle Mexican Grill Inc. | McDonald’s Corp. | Starbucks Corp. | Consumer Services | Consumer Discretionary | ||||
|---|---|---|---|---|---|---|---|---|---|---|
| Selected Financial Data | ||||||||||
| Current share price (P) | ||||||||||
| No. shares of common stock outstanding | ||||||||||
| Growth rate (g) | ||||||||||
| Earnings per share (EPS) | ||||||||||
| Next year expected EPS | ||||||||||
| Operating profit per share | ||||||||||
| Sales per share | ||||||||||
| Book value per share (BVPS) | ||||||||||
| Valuation Ratios (Price Multiples) | ||||||||||
| Price to earnings (P/E) | ||||||||||
| Price to next year expected earnings | ||||||||||
| Price-earnings-growth (PEG) | ||||||||||
| Price to operating profit (P/OP) | ||||||||||
| Price to sales (P/S) | ||||||||||
Based on: 10-K (reporting date: 2024-12-31).
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
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Price to earnings (P/E) | ||||||
| Price to operating profit (P/OP) | ||||||
| Price to sales (P/S) | ||||||
| Price to book value (P/BV) |
Based on: 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).
The financial ratios of the company exhibit distinct trends over the observed periods, reflecting changes in market valuation and operational performance.
- Price to Earnings (P/E) Ratio
- The P/E ratio shows a significant decrease from an exceptionally high value of 1696.44 in 2020 to 86.68 in 2021, indicating a normalization after an unusual spike. Subsequently, the ratio declines steadily to 29.87 in 2022, with minor fluctuations leading to 31.09 in 2023 and a further drop to 28 in 2024. This reflects a consistent stabilization in earnings valuation relative to the stock price, suggesting improving earnings or reduced market optimism.
- Price to Operating Profit (P/OP) Ratio
- Data is unavailable for 2020. The P/OP ratio begins at a high 40.46 in 2021 and then sharply decreases to 17.91 in 2022, indicating improved operating profit relative to the stock price. However, it rises again to 22.85 in 2023 and slightly declines to 21.8 in 2024. This variability suggests some fluctuations in operating profitability or market expectations regarding operating income.
- Price to Sales (P/S) Ratio
- The P/S ratio demonstrates a consistent downward trend from 14.73 in 2020 to 9.22 in 2021 and further down to 5.35 in 2022. After reaching this low, it shows a modest increase, rising to 6.24 in 2023 and 6.94 in 2024. The initial decline represents a reduced stock price relative to sales, possibly due to changing market perceptions of growth or profitability, while the recent slight increase may reflect renewed market confidence or growth expectations.
- Price to Book Value (P/BV) Ratio
- The P/BV ratio decreases from 20.46 in 2020 to 16.35 in 2021 but then surges sharply to 32.84 in 2022, indicating a significant increase in market valuation relative to book value. Data is missing for 2023 and 2024, limiting further analysis. The spike in 2022 may suggest market optimism or expectations of future asset value appreciation during that period.
Overall, the trends indicate a movement towards more normalized valuation multiples after unusual levels in 2020. The fluctuations in operating profit and sales-related ratios reveal some variability in operational performance or market sentiment. The lack of complete data for some ratios in the most recent years limits a comprehensive assessment of the latest valuation dynamics.
Price to Earnings (P/E)
Booking Holdings Inc., historical P/E calculation, comparison to benchmarks
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| No. shares of common stock outstanding1 | ||||||
| Selected Financial Data (US$) | ||||||
| Net income (in millions) | ||||||
| Earnings per share (EPS)2 | ||||||
| Share price1, 3 | ||||||
| Valuation Ratio | ||||||
| P/E ratio4 | ||||||
| Benchmarks | ||||||
| P/E Ratio, Competitors5 | ||||||
| Airbnb Inc. | ||||||
| Chipotle Mexican Grill Inc. | ||||||
| McDonald’s Corp. | ||||||
| Starbucks Corp. | ||||||
| P/E Ratio, Sector | ||||||
| Consumer Services | ||||||
| P/E Ratio, Industry | ||||||
| Consumer Discretionary | ||||||
Based on: 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).
1 Data adjusted for splits and stock dividends.
2 2024 Calculation
EPS = Net income ÷ No. shares of common stock outstanding
= ÷ =
3 Closing price as at the filing date of Booking Holdings Inc. Annual Report.
4 2024 Calculation
P/E ratio = Share price ÷ EPS
= ÷ =
5 Click competitor name to see calculations.
The analysis of the financial data reveals notable growth and fluctuations in key performance indicators over the five-year period.
- Share Price
- The share price exhibited relative stability from 2020 through 2022, fluctuating slightly between approximately $2,426 and $2,470. Starting in 2023, the share price increased markedly, reaching $3,902, and continued this upward trajectory into 2024, where it peaked at $5,018. This sharp rise indicates strong market confidence or positive developments affecting the company’s valuation in the last two years.
- Earnings Per Share (EPS)
- EPS showed significant improvement across the entire period. Beginning at a modest $1.44 in 2020, EPS surged dramatically to $28.49 in 2021, followed by an even larger increase to $81.23 in 2022. The upward trend continued with EPS reaching $125.52 in 2023 and further to $179.25 in 2024. This consistent and substantial growth in EPS reflects improving profitability and enhanced operational performance over the years.
- Price-to-Earnings (P/E) Ratio
- The P/E ratio experienced a pronounced decline from an exceptionally high value of 1696.44 in 2020 down to 86.68 in 2021, indicating that the initially very high valuation relative to earnings adjusted significantly as earnings increased. From 2021 onwards, the P/E ratio stabilized around the high 20s to low 30s range: 29.87 in 2022, 31.09 in 2023, and 28 in 2024. This stabilization suggests that the market valuation became more aligned with the company’s earnings capacity over time.
Price to Operating Profit (P/OP)
Booking Holdings Inc., historical P/OP calculation, comparison to benchmarks
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| No. shares of common stock outstanding1 | ||||||
| Selected Financial Data (US$) | ||||||
| Operating income (loss) (in millions) | ||||||
| Operating profit per share2 | ||||||
| Share price1, 3 | ||||||
| Valuation Ratio | ||||||
| P/OP ratio4 | ||||||
| Benchmarks | ||||||
| P/OP Ratio, Competitors5 | ||||||
| Airbnb Inc. | ||||||
| Chipotle Mexican Grill Inc. | ||||||
| McDonald’s Corp. | ||||||
| Starbucks Corp. | ||||||
| P/OP Ratio, Sector | ||||||
| Consumer Services | ||||||
| P/OP Ratio, Industry | ||||||
| Consumer Discretionary | ||||||
Based on: 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).
1 Data adjusted for splits and stock dividends.
2 2024 Calculation
Operating profit per share = Operating income (loss) ÷ No. shares of common stock outstanding
= ÷ =
3 Closing price as at the filing date of Booking Holdings Inc. Annual Report.
4 2024 Calculation
P/OP ratio = Share price ÷ Operating profit per share
= ÷ =
5 Click competitor name to see calculations.
- Share Price Trend
- The share price showed a relatively stable pattern from 2020 to 2022, fluctuating slightly around the 2400 US$ mark. A significant increase occurred in 2023, with the price rising to approximately 3902 US$, followed by a further substantial rise in 2024 to over 5000 US$. This indicates a strong upward momentum in market valuation during the last two recorded years.
- Operating Profit per Share Trend
- The operating profit per share exhibited a notable recovery and growth over the period. It began with a negative value of -15.4 US$ in 2020, suggesting losses. From 2021 onwards, a consistent and sharp increase is observed, reaching 61.05 US$ in 2021, nearly doubling in 2022 to 135.52 US$, and continuing this upward trajectory to 170.76 US$ in 2023 and 230.23 US$ in 2024. This reflects significant improvement in operational profitability over the five-year span.
- Price to Operating Profit (P/OP) Ratio Analysis
- The P/OP ratio, which is a valuation metric indicating how many times the share price is in relation to the operating profit per share, was not available for 2020. In 2021, it was relatively high at 40.46, suggesting potentially overvalued shares or cautious investor sentiment. The ratio then decreased markedly to 17.91 in 2022, indicating improved valuation relative to earnings. However, it slightly elevated again in 2023 and 2024 to roughly 22.85 and 21.8 respectively, signaling a moderate re-rating but still lower than the 2021 peak. This movement implies that while earnings grew impressively, the market's valuation relative to those earnings has stabilized at a more moderate level in the latest years.
- Overall Insights
- Over the examined period, the data illustrates a company that has transitioned from operating losses to considerable profitability, with operating profit per share increasing substantially. The sharp rise in share price in the most recent two years corresponds with this profitability trend but the P/OP ratio suggests the market valuation has become more balanced after an initial high. This combination suggests improved confidence in operational performance while maintaining reasonable valuation levels from an investor perspective.
Price to Sales (P/S)
Booking Holdings Inc., historical P/S calculation, comparison to benchmarks
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| No. shares of common stock outstanding1 | ||||||
| Selected Financial Data (US$) | ||||||
| Revenues (in millions) | ||||||
| Sales per share2 | ||||||
| Share price1, 3 | ||||||
| Valuation Ratio | ||||||
| P/S ratio4 | ||||||
| Benchmarks | ||||||
| P/S Ratio, Competitors5 | ||||||
| Airbnb Inc. | ||||||
| Chipotle Mexican Grill Inc. | ||||||
| McDonald’s Corp. | ||||||
| Starbucks Corp. | ||||||
| P/S Ratio, Sector | ||||||
| Consumer Services | ||||||
| P/S Ratio, Industry | ||||||
| Consumer Discretionary | ||||||
Based on: 10-K (reporting date: 2024-12-31), 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31).
1 Data adjusted for splits and stock dividends.
2 2024 Calculation
Sales per share = Revenues ÷ No. shares of common stock outstanding
= ÷ =
3 Closing price as at the filing date of Booking Holdings Inc. Annual Report.
4 2024 Calculation
P/S ratio = Share price ÷ Sales per share
= ÷ =
5 Click competitor name to see calculations.
- Share Price
- The share price experienced moderate fluctuations from 2020 to 2022, moving from 2443.5 US$ in 2020 to 2469.83 US$ in 2021, and then slightly decreasing to 2426.49 US$ in 2022. A significant upward trend began in 2023, with the price reaching 3901.99 US$, followed by a continued increase to 5018.23 US$ in 2024.
- Sales per Share
- Sales per share showed a strong and consistent growth across the years. Starting from 165.91 US$ in 2020, there was a substantial increase to 268 US$ in 2021. This upward momentum accelerated in subsequent years, reaching 453.94 US$ in 2022, 625.24 US$ in 2023, and further rising to 723.41 US$ in 2024, indicating steady expansion in revenue on a per-share basis.
- Price-to-Sales (P/S) Ratio
- The P/S ratio declined sharply between 2020 and 2022, dropping from 14.73 to 5.35, suggesting that the share price growth was lagging behind the rapid increase in sales per share during this period. From 2023 onward, the ratio began to rise again, moving to 6.24 in 2023 and 6.94 in 2024. This resurgence indicates renewed investor confidence and a possible revaluation of the shares relative to sales.
- Summary
- The data reveals a robust growth trajectory in sales per share throughout the period, demonstrating strong revenue expansion. The share price initially remained relatively stable before entering a phase of significant upward movement in the last two years. Meanwhile, the P/S ratio trend indicates an initial undervaluation followed by a gradual recovery, reflecting changing market perceptions and evaluation of the company’s sales performance relative to its stock price.
Price to Book Value (P/BV)
Booking Holdings Inc., historical P/BV calculation, comparison to benchmarks
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| No. shares of common stock outstanding1 | ||||||
| Selected Financial Data (US$) | ||||||
| Stockholders’ equity (deficit) (in millions) | ||||||
| Book value per share (BVPS)2 | ||||||
| Share price1, 3 | ||||||
| Valuation Ratio | ||||||
| P/BV ratio4 | ||||||
| Benchmarks | ||||||
| P/BV Ratio, Competitors5 | ||||||
| Airbnb Inc. | ||||||
| Chipotle Mexican Grill Inc. | ||||||
| McDonald’s Corp. | ||||||
| Starbucks Corp. | ||||||
| P/BV Ratio, Sector | ||||||
| Consumer Services | ||||||
| P/BV Ratio, Industry | ||||||
| Consumer Discretionary | ||||||
Based on: 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).
1 Data adjusted for splits and stock dividends.
2 2024 Calculation
BVPS = Stockholders’ equity (deficit) ÷ No. shares of common stock outstanding
= ÷ =
3 Closing price as at the filing date of Booking Holdings Inc. Annual Report.
4 2024 Calculation
P/BV ratio = Share price ÷ BVPS
= ÷ =
5 Click competitor name to see calculations.
The data reveals several notable trends in the financial metrics over the five-year period.
- Share Price
- The share price remained relatively stable from 2020 through 2022, fluctuating slightly between approximately $2,426 and $2,470. However, beginning in 2023, the share price experienced a sharp increase, rising to about $3,902, and this upward trajectory continued into 2024, reaching over $5,018. This indicates a significant appreciation in the market value of the company's shares, particularly in the last two years of the period analyzed.
- Book Value per Share (BVPS)
- The book value per share showed a divergent pattern compared to the share price. It initially increased from $119.45 in 2020 to $151.10 in 2021, indicating an improvement in the company's net asset value on a per-share basis. However, from 2022 onward, the book value per share declined sharply, turning negative at -$80.30 in 2023 and further decreasing to -$122.50 in 2024. This negative BVPS suggests that the company's liabilities exceeded its assets during the last two years, which could be a cause for concern regarding the balance sheet strength.
- Price-to-Book Value Ratio (P/BV)
- The price-to-book value ratio was 20.46 in 2020 and decreased to 16.35 in 2021, reflecting a slight alignment between market price and book value. Nevertheless, this ratio surged significantly to 32.84 in 2022 before the figures for 2023 and 2024 become unavailable or unreported. The sharp increase in P/BV corresponds with the decline in book value per share, signaling that despite deteriorating book value, market prices remained very high. This divergence often indicates market optimism about future earnings or intangible assets not captured in book value.
Overall, while the market valuation of the shares increased remarkably in the later years, the book value per share deteriorated substantially, resulting in a dramatic rise in the price-to-book ratio. This suggests that the market may be pricing in expectations of future growth or other factors beyond the book value, but the negative equity position reflected in the BVPS could have implications for the company's financial stability.