Booking Holdings Inc. (NASDAQ:BKNG)

The financial ratios over the quarterly periods exhibit significant variability and reveal certain trends in valuation and operational performance metrics.

Price to Earnings (P/E) Ratio

The P/E ratio was initially unavailable but appeared at extremely high levels above 1000 in early 2021, signaling possibly anomalous earnings data or market expectations. Subsequently, it declined steadily to a range between approximately 18 and 38 from late 2022 through mid-2025. This downward trend after the peak suggests stabilization in earnings or a correction in market valuation relative to earnings. The ratio's fluctuations within this range indicate varying investor sentiment or earnings performance across quarters.

Price to Operating Profit (P/OP) Ratio

The P/OP ratio data begins from late 2020, with a high initial ratio of nearly 67, which decreased markedly over time to values mostly between 14 and 23. This decline points to an improvement in operating profitability relative to the share price or a market revaluation to more moderate multiples. The ratio demonstrates some volatility but the overall trend is downward, suggesting enhanced operational efficiency or better profitability recognition by the market.

Price to Sales (P/S) Ratio

The P/S ratio shows a decreasing trend from its higher points above 14-17 in early to mid-2021, falling to a band roughly between 4.3 and 7.2 in the later periods through mid-2025. The reduction in this ratio implies that the market valuation relative to sales has contracted, possibly due to improved revenue generation or a more conservative market valuation approach. Noticeable minor fluctuations occur but the long-term pattern is a gradual decline followed by relative stabilization.

Price to Book Value (P/BV) Ratio

Data for the P/BV ratio is available only up to the first quarter of 2023, showing values generally between 15 and 20, except for a spike to nearly 90 at the end of 2022 and start of 2023. Such a spike may reflect significant market re-rating or accounting adjustments during that period. Earlier quarters show moderate fluctuations without a clear directional trend, indicative of steady book value relative to market price until the late 2022 anomaly.

Overall, the valuation multiples suggest a market that experienced heightened volatility and elevated valuations around 2020-2021, followed by a period of normalization. Improvements in operating profitability are reflected in the declining P/OP ratio, while reductions in P/E and P/S ratios point to more tempered market expectations relative to earnings and sales. The P/BV ratio’s late large spike warrants further investigation as it deviates markedly from previous patterns.

Share Price Trends

The share price exhibits significant fluctuations with an overall upward trajectory from March 2020 to June 2025. Initially, the price increased from approximately 1,444 USD in March 2020 to a peak around 2,470 USD by December 2021. A subsequent decline occurred during 2022, reaching a low near 1,778 USD in September 2022, followed by a strong recovery and steady rise throughout 2023 and into 2024. The price surpassed 5,000 USD by March 2025, representing substantial growth over the five-year period.

Earnings per Share (EPS) Analysis

The EPS data begins reporting in March 2020 with a value of 1.44 USD, then shows a marked increase through subsequent quarters. EPS rose notably to 17.12 USD in June 2021 and displayed strong growth trends with peaks reaching above 150 USD by early 2025. The pattern indicates increasing profitability with some variability quarter-to-quarter but maintaining an overall growth trend in earnings per share.

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

The P/E ratio presented high initial values, with an extreme outlier of nearly 1,700 in mid-2020, followed by a sharp decline to more moderate levels ranging mostly between approximately 20 and 40 in later periods. The trend suggests early elevated valuation relative to earnings, which normalized as EPS increased substantially. The P/E fluctuations correspond with share price variations and EPS growth, reflecting evolving market expectations and earnings performance.

Overall Financial Performance Observations

The company demonstrated strong growth potential with increasing EPS and recovering share price after a dip in 2022. The significant increase in share price and earnings indicates effective operational or market factors driving performance. The reduction and stabilization of the P/E ratio imply improved valuation metrics as earnings growth better supports the share price level. The data suggests resilience and positive investor sentiment during the observed period.

The share price exhibited significant fluctuations over the observed periods. Initially, there was a consistent upward trend from March 2020 through December 2020, with the price rising from 1443.91 US$ to 2443.5 US$. A notable volatility followed, with share prices declining in mid-2022 to a low near 1778.18 US$ in September 2022, before rebounding sharply in late 2022 and throughout 2023, reaching a peak of 3901.99 US$ by December 2023. The price continued its upward trajectory into 2024 and early 2025, peaking at 5590.77 US$ in June 2025, despite some volatility in intermediate quarters.

Operating profit per share (OP) data, although missing in early 2020, show a clear improvement trend beginning in late 2020. The figure started from negative values in December 2020 (-15.4 US$) and progressively rose over subsequent periods, turning positive by the middle of 2021. The growth in OP continued steadily, reaching 188.34 US$ in December 2023. This positive momentum persisted into 2024 and early 2025, with OP rising to 253.63 US$ by June 2025, indicating improved profitability per share over time.

The Price-to-Operating Profit (P/OP) ratio reflects changes in market valuation relative to operating profit. The ratio was high in late 2020 and early 2021, peaking at 66.89, indicative of the share price being valued very highly relative to operating earnings, possibly due to initial losses or investor expectations of recovery. As operating profit rose and stabilized, the ratio generally declined, reaching a low near 14.98 in March 2023. However, the ratio increased again in mid-2023, fluctuating in the range of 17 to 23 through 2024 and early 2025. This suggests varying market sentiment and valuation adjustments in response to operating performance and other potential factors.

Overall, the data show a recovery and growth phase starting from late 2020, characterized by rising operating profit per share and a generally ascending share price, albeit with periods of volatility. The fluctuating P/OP ratio indicates changing investor valuations relative to earnings, with some phases of premium pricing and others suggesting more conservative valuations. The increasing operating profit per share alongside the significant rise in share price toward the end of the period points to enhanced financial performance and market confidence.

Share Price Trend

The share price demonstrates notable volatility combined with a general upward trajectory over the observed periods. Initially, the share price rose from $1443.91 in March 2020 to a peak of $2469.83 by December 2021, reflecting significant growth. This was followed by a decline to $1778.18 in September 2022, indicating a temporary downturn. Subsequently, another upward trend is observed, culminating in a peak of $5590.77 projected for June 2025. Overall, the share price more than tripled from the earliest to the latest period, implying strong market valuation growth despite interim fluctuations.

Sales Per Share Trend

Sales per share information begins recording from March 2021, starting at $165.91 and increasing consistently in subsequent periods. The values show steady quarter-over-quarter growth from $165.91 to an estimated $772.14 by June 2025, representing an approximate 4.7-fold increase. This persistent rise signals improving revenue-generating capability per share over time, highlighting positive operational performance.

Price-to-Sales (P/S) Ratio Analysis

The P/S ratio exhibits a declining trend from March 2021, where it starts at 14.73 and notably decreases to a low of 4.3 in December 2022. This decline suggests that the share price was growing at a slower pace relative to sales per share during this period or sales growth outpaced price appreciation. Post-December 2022, the P/S ratio increases again, reaching 7.24 by June 2025, but remains below the initial high levels. The fluctuation in the P/S ratio indicates changing market valuation relative to sales, reflecting periods of reevaluation of growth prospects and possible market sentiment adjustments.

Overall Insights

The company’s financial metrics indicate robust sales growth coupled with significant share price appreciation over the long term. The initial reduction in the P/S ratio points to accelerating sales outpacing share price increases, which can be interpreted as improving fundamentals. Later recovery in the P/S ratio suggests investors regained confidence and were willing to assign a higher valuation multiple. The data portrays a company experiencing strong operational improvements and gradually recovering market sentiment, resulting in sustained increases in both share price and sales per share.

Share Price Trends

The share price exhibits a general upward trend over the analyzed periods, starting at $1443.91 in the first quarter of 2020 and reaching $5590.77 by the second quarter of 2025. There are notable increases during the latter half of 2023 and throughout 2024. Despite some fluctuations, share price levels demonstrated strong growth, particularly from late 2023 onwards, where values surged past the $4000 mark and continued rising steadily.

Book Value Per Share (BVPS) Trends

The book value per share shows significant variability and a marked decline over time. Initial BVPS started at $93.6 in early 2020, increased modestly through 2021 to a peak of $151.1 in the final quarter of 2021, and then declined sharply from 2022 onward. By the first quarter of 2023, BVPS had drastically fallen to $29.08 and subsequently turned negative, continuing to deepen into negative territory through mid-2025, reaching as low as approximately -$205.4. This negative trend reflects a deterioration in net asset value per share over the latter periods.

Price to Book Value Ratio (P/BV)

The P/BV ratio fluctuated significantly, starting at 15.43 in Q1 2020 and generally maintaining a range between approximately 14.7 and 20.5 through 2021. A sharp spike occurred in the first quarter of 2023, when the ratio jumped to 89.53. Data following this spike are missing. The surge corresponds with the simultaneous decrease and eventual negative values of BVPS, indicating that the market value of shares far exceeded book value during this period, which may point to market optimism or divergence between market and accounting valuations.

Overall Observations

The divergence between the soaring share price and the sharply declining, eventually negative, BVPS suggests increasing market valuation that is not supported by the book value on the balance sheet. This disparity is illustrated by the volatile and highly elevated P/BV ratio during the early part of 2023. The negative BVPS values highlight potential issues with the company's net asset base, which could be a result of increased liabilities, asset write-downs, or other balance sheet deteriorations. Meanwhile, the persistent increase in share price implies continuing investor confidence or growth expectations despite underlying book value weaknesses.