Booking Holdings Inc. (NASDAQ:BKNG)

Price to Earnings (P/E) Ratio

The P/E ratio exhibits notable volatility over the observed periods. Initially, the ratio increased sharply from 136.53 to a peak of 261.79 in late 2021, indicating elevated market expectations or higher stock prices relative to earnings. Subsequently, it declined significantly to around 18.68 by late 2023, signaling a possible improvement in earnings or adjustment in valuation. In recent quarters, the ratio stabilized in the range of approximately 24 to 37, suggesting moderate market optimism with some fluctuations.

Price to Operating Profit (P/OP) Ratio

This ratio, available from late 2021 onwards, shows a marked downward trend from 66.89 to roughly 15.07 by late 2023. This decline reflects either increasing operating profitability or a relative decrease in market valuation per unit of operating profit. Post-2023, the ratio fluctuates between 19 and 23, suggesting some stabilization with moderate market valuation relative to operating profit.

Price to Sales (P/S) Ratio

The P/S ratio depicts a gradual decrease from 16.99 early in 2021 to a low near 4.3 by late 2022. This decline indicates that the company’s valuation became more aligned with its sales, possibly due to revenue growth or market recalibration. Since then, the ratio has experienced minor fluctuations, hovering between 5 and nearly 7, signaling a steady market valuation relative to sales with moderate variability.

Price to Book Value (P/BV) Ratio

The P/BV ratio remains available only through early 2023, and shows substantial variation. Initially declining slightly from 20.15 in early 2021 to 16.35 by late 2021, it then surged to an exceptionally high value of 89.53 by early 2023. This sharp increase suggests a significant revaluation relative to book value, potentially driven by market expectations or accounting changes. Subsequent data is not available to confirm continuation or reversal of this trend.

Overall Insights

Across all valuation metrics, there is a discernible pattern of initial elevated ratios in early periods, followed by corrections and more stable valuations in the recent years. The decreasing trends in P/E, P/OP, and P/S ratios up to late 2023 reflect improvements in earnings, operating profit, and sales relative to price, or a normalization of market prices. The unusual spike in the P/BV ratio warrants further investigation due to its significant departure from historical levels. The data suggests a mature phase with moderate fluctuations in market valuation multiples in recent quarters.

Share Price Trend

The share price exhibited notable fluctuations across the periods analyzed. Initially, there was a decline from approximately $2,338 at the end of Q1 2021 to $1,778 by Q3 2022, indicating a downward trend during this timeframe. Subsequently, a pronounced recovery phase is observed, with the share price ascending sharply to reach over $5,000 by Q2 2025. This reflects a strong bullish momentum in the later periods, suggesting increased investor confidence or improved company prospects.

Earnings Per Share (EPS) Trend

EPS displayed a generally upward trajectory over the time span. The EPS began at $17.12 in Q1 2021, dipped to single digits around mid-2021, and then showed a substantial increase, peaking at $179.25 in Q4 2024. Following this peak, the EPS experienced minor fluctuations but remained elevated above $140 through to mid-2025. This growth in EPS indicates improving profitability and operational performance over the periods assessed.

Price-to-Earnings (P/E) Ratio Trend

The P/E ratio started relatively high at 136.53 in Q1 2021, surged to an even higher 261.79 by Q3 2021, suggesting that the market price was high relative to earnings at this stage. After this peak, the ratio substantially decreased, reaching lows near 18.68 by Q3 2023, indicative of earnings growth outpacing share price increases during this time. Subsequently, the ratio stabilized in a range between roughly 23 and 37 from Q4 2023 through mid-2025, reflecting a more balanced valuation relative to earnings.

Interpretation and Insights

The data reveals a period of initial volatility and valuation correction, characterized by a fall in share price and a very high P/E ratio, likely due to comparatively low earnings. Over time, earnings growth significantly outstripped prior levels, leading to an expansion in EPS and a normalization of P/E ratios to more moderate levels despite rising share prices. The late period sharp increase in share price, coupled with sustained high EPS, signals positive market sentiment and potentially strong underlying business performance. The fluctuations in P/E also suggest that valuation multiples adjusted according to earnings momentum and market conditions, reflecting a maturing phase in the company’s financial metrics.

The financial performance exhibits several noteworthy trends across the examined quarters.

Share Price

The share price demonstrated considerable fluctuations with an overall upward trajectory. Initial values showed a decline from 2337.92 to 1778.18 US$ between March 2021 and September 2022. Subsequently, there was a strong recovery and surge, reaching a peak of 5590.77 US$ by June 2025. This indicates renewed market confidence and potentially improved business prospects or external market conditions favoring price appreciation in later periods.

Operating Profit Per Share (OPPS)

The operating profit per share consistently improved from negative values in the first two quarters (-15.42 and -4.99 US$) to positive and increasing levels thereafter. The figure rose from 36.41 US$ in September 2021 to 264.44 US$ by March 2025. This steady growth signals enhanced operational efficiency, stronger earnings, or a recovery phase following initial losses, suggesting the company has significantly strengthened its profitability over time.

Price to Operating Profit Ratio (P/OP)

Early in the data, P/OP ratios were either absent or extremely high, primarily due to negative or low operating profit per share. As operating profit increased, ratios declined sharply from 66.89 to values fluctuating around 14.98 to 22.96 subsequently. Though the ratio increased slightly in certain periods, it remained relatively stable around the high teens to low twenties. This pattern implies that while the stock became more reasonably valued relative to operating profit, market valuations maintained some premium, potentially reflecting growth expectations or market volatility.

In summary, the data indicates that profitability improved significantly over the quarters, supporting share price appreciation. Despite some volatility in valuation multiples, the general trend points to recovering and strengthening operating performance aligned with positive investor sentiment reflected in rising share prices.

The analysis of the financial metrics over the given periods reveals several noteworthy trends in the company's valuation and performance indicators.

Share Price

The share price demonstrates notable volatility with periods of decline and growth. Initially, it decreases from approximately $2,338 in the first quarter of 2021 to a low near $1,778 by the third quarter of 2022. Subsequently, a marked recovery ensues, peaking at just over $5,018 by the fourth quarter of 2024. This suggests a strong recovery phase accompanied by investor confidence buildup toward the later periods.

Sales per Share

Sales per share consistently increase throughout the entire timeframe. Beginning at around $138 per share in early 2021, sales per share ascend steadily, reaching over $808 by the third quarter of 2025. This upward trend indicates sustained growth in revenue generation on a per-share basis, reflecting improving operational performance or expansion.

Price-to-Sales (P/S) Ratio

The price-to-sales ratio shows a declining trend from a high of approximately 17 at the beginning of 2021 to a trough near 4.3 in the third quarter of 2022. Following this low, the ratio exhibits a moderate upward adjustment, stabilizing around values between 5 and 7 from 2023 onward, with a slight increase toward 7.2 in the third quarter of 2025. This trend indicates that the market initially reduced valuation multiples relative to sales, possibly due to risk reassessment or slowed growth expectations, but valuation multiples increased again amid sales growth and improved market sentiment.

Overall, the company exhibits robust sales growth reflected in rising sales per share, while the share price trends suggest recovery after a period of decline. The price-to-sales ratio movements imply shifting market perceptions regarding the company's sales value, ultimately settling into a moderate valuation range higher than the trough but lower than the initial peak. These patterns collectively suggest enhanced operational performance supported by increased investor confidence in the latter periods.

Share Price Trend

The share price exhibits notable fluctuations over the analyzed periods. Initially, it declined from approximately 2,338 USD at the end of Q1 2021 to about 1,778 USD by Q3 2022, reflecting a downward trend in this timeframe. Subsequently, it reversed course, showing a strong upward momentum from late 2022 through to Q3 2025, reaching a peak above 5,500 USD. This represents a significant appreciation in market valuation in the later periods.

Book Value Per Share (BVPS) Dynamics

BVPS demonstrates a pronounced decline throughout the observed quarters. Starting from around 116 USD in early 2021, the book value per share gradually decreased, turning negative beginning in Q1 2023. The negative values deepen substantially, reaching levels below -180 USD by mid-2025, indicating a deterioration in the company’s net asset value on a per-share basis.

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

The P/BV ratio begins near levels around 20 in early 2021, with minor fluctuations throughout 2021 and 2022. However, by the end of 2022, it spikes sharply to over 32 and reaches an extremely elevated value close to 90 by Q1 2023. Data for this ratio after Q1 2023 is not available. The drastic increase in the P/BV ratio corresponds with the negativity and sharp decline in BVPS, while share prices increased, indicating market valuation is significantly higher than book value during this period.

Overall Financial Position Insight

The divergence observed between soaring share prices and plunging BVPS suggests that the market valuation is heavily influenced by factors beyond the company’s book value, possibly including growth expectations or intangible asset valuations. The sustained negative book value in the most recent periods highlights potential concerns related to the company's asset base or accumulated losses, despite strong price performance.