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What do the Fundamentals Predict for Booking Holdings Inc (BKNG) Stock?

Tuesday, March 26, 2024 03:23 PM | InvestorsObserver Analysts

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What do the Fundamentals Predict for Booking Holdings Inc (BKNG) Stock?

Booking Holdings Inc (BKNG) receives a strong valuation ranking of 93 from InvestorsObserver data analysis. The proprietary ranking system focuses on the underlying health of a company through analysis of its stock price, earnings, and growth rate. BKNG has a better value than 93% of stocks based on these valuation analytics. Investors primarily focused on buy-and-hold strategies will find the valuation ranking relevant to their goals when making investment decisions.

Valuation Rank - 93
BKNG gets a 93 Valuation Rank today. Find out what this means to you and get the rest of the rankings on BKNG!

Metrics Analysis

BKNG's trailing-12-month Price to Earnings (PE) ratio of 28.88 puts it above the historical average of roughly 15. BKNG is a poor value at its current trading price as investors are paying more than what its worth in relation to the company's earnings. BKNG's trailing-12-month earnings per share (EPS) of 118.00 does not justify what it is currently trading at in the market. Trailing PE ratios, however, do not factor in a company's projected growth rate, resulting in some firms having high PE ratios due to high growth potentially enticing investors even if current earnings are low.
BKNG has a 12 month forward PE to Growth (PEG) ratio of 1.11. Markets are overvaluing BKNG in relation to its projected growth as its PEG ratio is currently above the fair market value of 1. 118's PEG comes from its forward price to earnings ratio being divided by its growth rate. PEG ratios are one of the most used valuation metrics due to its incorporation of more company fundamentals metrics and a focus on the firm's future rather than its past.

Summary

All together these valuation metrics paint a pretty adequate picture for BKNG at its current price due to a fairly valued PEG ratio despite strong growth. The PE and PEG for BKNG are around the average of the market resulting in a valuation score of 93. Click Here to get the full Report on Booking Holdings Inc (BKNG) stock.

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