Booking Holdings Inc. (NASDAQ:BKNG)

The analysis of the financial ratios over the reported quarters reveals several notable trends and fluctuations.

Price to Earnings (P/E) Ratio

The P/E ratio shows significant volatility starting from the first available data in March 2020. Initially, there is a very high peak at 1696.44, which then sharply declines through 2021, fluctuating between approximately 23 and 87 in 2021 and early 2022. From mid-2022 onwards, the ratio stabilizes in a range between approximately 18 and 31, suggesting a moderation in market valuation relative to earnings. This stabilization indicates a possible normalization in earnings expectations or stock price adjustments over time.

Price to Operating Profit (P/OP) Ratio

The P/OP ratio data begins later than P/E, with values available from the last quarters of 2020. There is a clear downward trend from a very high 66.89 at the end of 2020 to around 14.98 in early 2022, indicating improved operating profitability or adjustments in stock price reflecting better operational performance. Post early 2022, the ratio fluctuates but remains relatively stable around a mid-teens range, ending near 20.41 by the first quarter of 2025. The initial sharp decline may represent operational recovery or increased efficiency.

Price to Sales (P/S) Ratio

The P/S ratio shows an overall decreasing trend from 14.73 in the earliest report in 2020 to a low near 4.3 by the end of 2022. After this low point, the ratio experiences moderate increases, fluctuating between roughly 5 and 7 up to early 2025. This pattern could indicate increasing sales performance surpassing price growth initially, with subsequent price adjustments or revenue fluctuations causing the minor upticks. The long-term decline followed by stabilization suggests evolving market perception of revenue value in relation to stock price.

Price to Book Value (P/BV) Ratio

The P/BV ratio data is partial but shows initial increases, from 15.43 in early 2020 to a peak of 32.84 by late 2022. A very high value of 89.53 is recorded after this peak, indicating a possible one-time event or market revaluation impacting book value perception. Subsequent data is missing, preventing further trend analysis. The sharp spike seen might reflect extraordinary market optimism or significant book value changes in that period.

In summary, the data suggest the company's market valuation relative to earnings and operating profits experienced initial high valuations and volatility which gradually moderate over time. The valuation relative to sales shows a downward trend early on, followed by minor recovery, indicating adjustments in revenue expectations against market price. The price to book value shows a notable spike likely representing extraordinary market conditions or accounting changes, though data is incomplete for full analysis. Overall, the financial ratios depict a movement from extreme valuation levels toward more stabilized, sustainable measures over the observed periods.

The share price exhibited considerable volatility over the observed periods, starting from about $1,444 in the first quarter of 2020 and reaching a peak close to $5,018 by the first quarter of 2025. There were notable increases particularly towards the end of 2023 and throughout 2024, indicating strong market confidence or positive developments influencing valuation. Despite some dips, such as in early 2022, the overall trend is upward.

Earnings per share (EPS) showed a significant upward trajectory, beginning with missing data in early 2020, then registering an EPS of 1.44 in March 2021 and consistently increasing to reach approximately 167.15 by March 2025. This progressive increase in earnings per share reflects improving profitability and operational performance over the years, with substantial growth phases notably from 2021 onwards.

The price-to-earnings (P/E) ratio initially appeared inflated in early 2021, peaking as high as 1696.44 in March 2021, which may suggest the market's unexpected positive sentiment or an earnings data anomaly. Subsequently, the P/E ratio stabilized and generally decreased, fluctuating mostly between 18 and 31 in the later periods, reflecting a normalization and possibly the market adjusting the share price relative to actual earnings growth. This decline in P/E ratio despite rising share price and EPS could indicate that earnings increased at a faster rate than the share price.

Overall, the data reflects a period of growth in both market valuation and profitability. The share price appreciation alongside a strong rise in EPS suggests effective business expansion or improved financial results. The more stabilized P/E ratio in the later periods indicates maturation in valuation metrics aligning more closely with earnings performance. The initial extreme P/E values may point to extraordinary market conditions or delayed earnings recognition during the early part of the data series.

The analyzed data reveals a dynamic progression in both the share price and operating profit per share over the given periods, with notable fluctuations and trends indicating varying market and operational conditions.

Share Price Trends

The share price exhibited a generally upward trajectory despite intermittent declines. Starting at $1443.91 in March 2020, it increased significantly to a peak of $3901.99 in December 2023. This growth suggests strong market confidence or improved company prospects during this interval.

However, some periods showed reductions; for instance, the price dipped from $2469.83 in December 2021 to $1778.18 by September 2022. This interval indicates some volatility possibly related to external market factors or company-specific developments.

Starting in December 2023, the share price again rose sharply to reach over $5000 by March 2025, reflecting a strong bullish sentiment or successful operational performance in the trailing periods.

Operating Profit Per Share Dynamics

Operating profit per share began with negative values in 2020, with figures of approximately -15.4 US$ in the last two quarters of that year. This denotes initial operational challenges or losses during this early phase.

Subsequently, operating profit per share recovered sharply, turning positive by June 2021 and demonstrating a consistent upward trend through March 2025. The value rose from 36.41 US$ in June 2021 to 240.5 US$ in March 2025, indicating improving operational efficiency and profitability.

Price to Operating Profit Ratio (P/OP)

The P/OP ratio presents significant variation, starting high at 66.89 around the middle of 2021 and falling to a low point near 14.98 in March 2023. Lower ratios suggest that share prices were becoming more justified by the underlying profitability.

Thereafter, the ratio experienced an increase and oscillated between approximately 15 and 23 through to March 2025. This fluctuation may reflect changing market valuations relative to operating profit, potentially driven by investor sentiment, growth expectations, or risk assessments.

Overall Insights

The initial negative operating profits alongside a rising share price could indicate a market anticipation of turnaround or growth potential, rather than current earnings being the primary driver of value.

From mid-2021 onward, a strong alignment appears between increasing operating profit per share and a rising share price, although the P/OP ratio’s variability highlights that market valuation relative to profitability was influenced by additional factors beyond operational results alone.

The strong increase in both share price and operating profit per share in the later periods suggests robust operational performance and positive market sentiment, reinforcing confidence in future earnings potential.

The analysis of the quarterly financial data reveals several distinct trends in the share price, sales per share, and price-to-sales (P/S) ratio over the observed periods.

Share Price

The share price exhibited a general upward trajectory from March 2020 through December 2025, with some fluctuations. Starting at $1,443.91 in March 2020, the price increased notably to a peak of $2,469.83 by December 2021. Following this peak, a decline occurs throughout 2022, reaching a low near $1,778.18 in September 2022. Subsequently, the share price resumed growth, culminating in a substantial peak of $5,018.23 by December 2024. The price at March 2025 remains high at $4,909.23, indicating sustained investor confidence and overall positive market sentiment despite interim volatility.

Sales Per Share

Sales per share started with missing data prior to March 2021. From March 2021 onwards, there is a consistent increase quarterly. Beginning at $165.91 in March 2021, sales per share rose steadily to $740.19 by March 2025. This significant growth suggests improving operational performance and possibly expanding revenue generation on a per-share basis over this four-year period.

Price-to-Sales (P/S) Ratio

The P/S ratio displayed a declining trend in the early periods, dropping from 14.73 in March 2021 to a low of 4.3 by December 2021. This decline could signify that the share price growth was slower relative to sales growth during this timeframe or a market reassessment of valuation. After December 2021, the P/S ratio fluctuated moderately between approximately 4.8 and 6.94, indicating stabilization of the pricing multiples, despite continued growth in sales per share and share price. This stabilization after an initial decline reflects a market adjusting to improved sales while balancing valuation expectations.

In summary, the data demonstrates strong growth in both share price and sales per share over the longer term, accompanied by an initial compression and later stabilization of valuation multiples as measured by the P/S ratio. The increase in sales per share directly supports the sustained share price appreciation, while fluctuations in the P/S ratio suggest periods of market recalibration regarding valuation relative to the company’s sales growth trajectory.

The share price exhibited a generally upward trend over the observed periods, beginning at $1443.91 in March 2020 and reaching a peak of $5018.23 by March 2025. Despite some fluctuations, including a notable dip between March 2022 and September 2022, the overall trajectory demonstrates significant growth and recovery, particularly in the latter part of the timeline, with the highest values observed in the last two quarters.

Conversely, the book value per share (BVPS) showed a declining trend over the same timeframe. Initially, BVPS rose from $93.6 in March 2020 to a high of approximately $151.1 in December 2021. Following this peak, a consistent decrease set in, leading to negative values starting from June 2023, and deepening substantially through to March 2025, where BVPS reached -$187.83. This shift from positive to negative book value per share is indicative of significant changes in the company's equity or asset base over these periods.

The price-to-book value ratio (P/BV) varied widely, influenced by both the share price and BVPS movements. Early periods saw ratios fluctuating between approximately 14.74 and 20.46, reflecting moderate valuation levels relative to book value. However, there was a marked spike to 32.84 in December 2022 and an extreme increase to 89.53 by March 2023. The last recorded data for P/BV was incomplete, but the trend suggests an escalating P/B ratio driven primarily by the rapidly declining and negative book values combined with fluctuating share prices.

These trends collectively suggest that while the market valuation of the company, as reflected by share price, has increased markedly, the underlying book value per share has deteriorated significantly. The expanding P/B ratios in the context of declining book values may imply heightened market expectations or speculative valuation rather than improvements in fundamental net asset value. This divergence warrants careful consideration in evaluating company performance and market perceptions.

Share Price

Increased from $1443.91 to a peak exceeding $5000, with occasional declines, particularly in mid-2022, followed by a strong upward momentum into 2025.

Book Value per Share (BVPS)

Rose initially to over $150 by late 2021, then declined sharply, turning negative from mid-2023 onward and declining further to nearly -$188 by early 2025.

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

Maintained a range between approximately 14 and 20 early on, spiked significantly starting late 2022, reaching nearly 90 by early 2023, reflecting increasing disparity between share price and book value.