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Booking Holdings Inc BKNG

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Morningstar’s Analysis

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1-Star Price

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Economic Moat

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Capital Allocation

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Booking Investing Into Its Network Advantage in Front of an Expected Demand Rebound Later in 2021

Dan Wasiolek Senior Equity Analyst

Analyst Note

| Dan Wasiolek |

We see little change to our Booking $2,150 fair value estimate, which assumes 2021 sales rebound strongly to around mid-70% of 2019 levels, with a full recovery by 2023. Booking and many other travel names now more than factor in a strong demand return, aided by optimism around high household savings rates and vaccinations, leaving shares overvalued.

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Company Profile

Business Description

Booking is the world’s largest online travel agency by sales, offering booking services for hotel and vacation rooms, airline tickets, rental cars, restaurant reservations, cruises, experiences, and other vacation packages. The company operates a number of branded travel booking sites, including Priceline.com, Booking.com, Agoda, OpenTable, and Rentalcars.com, and has expanded into travel media with the acquisitions of Kayak and Momondo. Transaction fees for online bookings account for the bulk of revenue and profits.

Contact
800 Connecticut Avenue
Norwalk, CT, 06854
T +1 203 299-8000
Sector Consumer Cyclical
Industry Travel Services
Most Recent Earnings Dec 31, 2020
Fiscal Year End Dec 31, 2020
Stock Type Cyclical
Employees 20,300

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