Booking Holdings Inc. Common Stock (BKNG)
POSITIVEFundamental
84
Price
$213.33
Market Cap
$160.31B
Part 1 · What the company is worth
Overview
Booking Holdings connects travellers with hotels, rental cars and flights through a family of online brands, the largest being Booking.com, alongside Priceline, Agoda, Kayak and the restaurant-reservation app OpenTable. It owns none of the rooms, cars or planes it lists: it is an intermediary that earns a fee for arranging the reservation, with most of its business coming from hotel and other accommodation bookings rather than from flights or car rentals.
How it makes money
Most revenue is a commission taken when a traveller books a room and pays the hotel directly — 'merchant' revenue, where Booking Holdings increasingly collects the payment itself and passes it on to the property after taking its cut, has grown to be the largest slice. A smaller, shrinking share is a simpler referral fee on bookings paid straight to the hotel, plus a growing advertising business that sells placement to hotels and other travel brands within its own apps and websites.
Revenue by segment
Bookings where Booking Holdings itself collects the traveller's payment and remits it to the hotel or supplier, keeping a commission.
Bookings where the traveller pays the hotel directly and Booking Holdings earns a simple referral commission after the stay.
Sponsored placement sold to hotels and travel brands, plus OpenTable's restaurant-reservation revenue.
Competitive moat
Network effects · WideBooking.com's scale of listed properties gives travellers more choice than a smaller competitor, which in turn makes it the default place hotels list their rooms to reach that traffic — each side of the marketplace reinforces the other. Two decades of accumulated hotel relationships and search-engine spending to acquire traffic make this difficult for a new entrant to replicate quickly.
What drives demand
CyclicalTravel is discretionary spending that households cut first in a downturn, and the industry has shown it can drop to near zero during shocks like a pandemic or major geopolitical disruption. In normal times demand tracks disposable income and consumer confidence closely, making bookings volume one of the more visibly cyclical parts of consumer spending.
Key risks
- Dependence on search-engine traffic acquisition — A significant share of bookings originates from paid search advertising, mainly on Google, so changes to search algorithms or a rise in advertising costs directly affect both traffic and profitability.
- Cyclical, shock-prone travel demand — Travel booking volume can collapse quickly during pandemics, wars, natural disasters or economic downturns, and the business has no way to shield itself from a sudden stop in global travel.
- Regulatory scrutiny in Europe — Booking.com has been designated a gatekeeper platform under EU digital-market rules, which restricts practices like price-parity clauses and can require costly changes to how it operates in its largest market.
- Currency exposure from international operations — Most bookings and much of the company's cost base are outside the United States, so a stronger dollar can reduce reported revenue and profit even when underlying travel activity is unchanged.
The case for
Buyers argue that Booking.com's scale of listed properties creates a self-reinforcing advantage over smaller travel sites, that the shift toward merchant-model bookings and advertising gives the company more control over margins, and that travel demand has historically recovered fully after every past shock.
The case against
Sellers fear that heavy reliance on paid search traffic leaves margins exposed to rising advertising costs largely paid to Google, that European gatekeeper regulation could force changes to practices the business has relied on for years, and that travel demand remains inherently vulnerable to shocks outside the company's control.
Written by the editors, published on August 18, 2026
Direct competitors
Who this company fights with for the same customers
No editorial profile for this company yet
No competitor list for this company yet.
Balance Sheet & Liquidity
Revenue
$28.24B
Trailing 12 months (through 6/30/2026)
Net Income
$7.21B
Trailing 12 months (through 6/30/2026)
Free Cash Flow
$9.09B
Total Equity
$-5.58B
Total Liabilities
$34.84B
Current Ratio
1.09
Interest Coverage
8.42
Debt/EBITDA
2.19
Earnings Per Share
Revenue & Net Income
Free Cash Flow
Income Breakdown
Historical statement
Margins over time
Debt over time
How heavy the debt is
Growth grid
Growth — Revenue
Fair Value Estimation
Fair Value
$437.02
Current Price
$213.33
Margin of Safety
+51.2%
Fair Value Range
$284.07 - $589.98
Estimation Methods
Valuation Metrics
P/E Ratio
1.27
ROE
-96.9%
P/B Ratio
-
P/FCF
16.81
Gross Margin
-
ROIC
85.2%
Profitability Radar
Value Creation (Economic Moat)
ROIC
85.2%
WACC
10.1%
ROIC − WACC
+75.0 pp
ROIC exceeds the cost of capital — the company is creating value for shareholders.
Fundamental Analysis Criteria
Passed (20)
- EPS shows upward trend
- EPS CAGR 24.98%
- Price CAGR 13.59%
- ROIC 85.2%
- P/FCF 16.81
- Operating Margin 32.9%
- Positive Free Cash Flow
- CapEx intensity
- Current Ratio
- Interest Coverage
- Debt/EBITDA
- Return on Tangible Assets
- ROE 139.6%
- Revenue Growth 5Y 31.7%
- Analyst Consensus 83% Buy
- PEG Ratio 0.14
- Earnings Quality (OCF/NI) 1.37
- Share Dilution -4.2%
- Net Margin Trend 25.5% vs 19.2%
- Piotroski F-Score 6/9
Failed (3)
- Low reliance on intangibles
- DCF valuation (Overvalued)
- Earnings Surprise avg 1.5%
Unavailable (5)
- Gross Margin NaN%
- P/B Ratio NaN
- Dividend Payout NaN%
- Debt/Equity ratio
- Price below Graham Number
Piotroski F-Score
Mixed signals: some areas need attention
Earnings Quality
High quality: earnings backed by cash
Share Dilution
Buying back shares. Shareholder friendly
Governance
Executive Team
| Name | Title | Age |
|---|---|---|
| Mr. Glenn D. Fogel | President, CEO & Director | 63 |
| Mr. Ewout Lucien Steenbergen | Executive VP & CFO | 56 |
| Mr. Peter J. Millones Jr. | Executive VP & General Counsel | 55 |
| Mr. Paulo Pisano | Chief Human Resources Officer | 51 |
| Ms. Caroline Dolores Sullivan | Senior VP, Chief Accounting Officer & Controller | 56 |
| Ms. Leslie Cafferty | Head of Communications | - |
| Ms. Debby Soo | Chief Executive Officer of OpenTable | 44 |
| Mr. Vijay S. Iyer | Senior VP, Associate General Counsel & Corporate Secretary | - |
| Mr. Omri Morgenshtern | Chief Executive Officer of Agoda | - |
| Ms. Brigit Zimmerman | Chief Executive Officer of Priceline | - |
Audit Risk
9
Board Risk
2
Compensation Risk
3
Shareholder Rights Risk
2
Part 2 · The price and when to enter
This part won't tell you whether the company is worth owning: it helps you choose when to buy it, once the fundamentals have convinced you. Inside: technical analysis, potential, historical drawdowns, gamma exposure.
Latest News
Recent headlines for BKNG, sourced from Markets Gazette.
- 21d agoNEUTRALBooking Holdings Keeps Full-Year Outlook on Resilient Travel
Booking Holdings Inc. has reaffirmed its full-year financial projections for gross bookings and revenue. This decision comes despite the ongoing geopolitical tensions in the Middle East, which have exerted downward pressure on flight prices and capacity. The company's confidence stems from the sustained resilience observed in global travel demand. Investors will monitor how the company navigates these external pressures while maintaining its growth trajectory.
- 5/12/2026POSITIVEHere's How Much You Would Have Made Owning Booking Holdings Stock In The Last 20 Years
An analysis of Booking Holdings stock reveals a significant long-term growth trajectory, with investors who held the stock over the past 20 years experiencing substantial returns. While specific figures for the 20-year period are not detailed in this summary, the implication is one of consistent outperformance. This historical performance suggests strong business fundamentals and effective management, making Booking Holdings a potentially attractive long-term investment for those seeking exposure to the online travel sector.
- 4/28/2026NEGATIVEBooking’s 2Q Guidance Misses on Middle East, Shares Slide
Booking Holdings Inc. has issued a disappointing second-quarter revenue growth forecast, missing analyst expectations. The company also revised its full-year outlook downwards, citing a significant impact from the ongoing conflict in the Middle East on travel demand. This geopolitical instability is directly affecting booking volumes and traveler confidence, leading to a projected slowdown in revenue expansion. Investors are reacting negatively to the reduced guidance, anticipating a period of subdued performance for the online travel giant.
- 4/6/2026POSITIVEWhy Booking Holdings Shares Are Moving Higher Monday?
Booking Holdings Inc. (NASDAQ: BKNG) saw its shares trade higher on Monday, a move primarily attributed to a significant 25-for-1 stock split. This corporate action, while not altering the company's fundamental valuation, often makes shares more accessible to a broader range of retail investors by lowering the per-share price. For traders, this can lead to increased liquidity and potentially higher trading volumes, which may be interpreted as a positive signal for the stock's short-term performance and accessibility.
- 3/6/2026POSITIVEHere's How Much You Would Have Made Owning Booking Holdings Stock In The Last 15 Years
An analysis of Booking Holdings Inc. stock reveals a significant return for long-term investors over the past 15 years. While specific figures are not detailed in the provided snippet, the title implies substantial capital appreciation and potentially dividend payouts. This historical performance suggests strong underlying business growth and effective management, making it a potentially attractive holding for investors seeking exposure to the online travel sector. The sustained positive trend indicates resilience and adaptability in a dynamic market.
- 3/5/2026POSITIVEBooking Holdings Stock Surges As AI-Checkout Fears Ease Thursday
Booking Holdings Inc. shares are trading higher Thursday afternoon, buoyed by fresh analyst commentary linking the stock's move to shifting expectations around AI-driven disruption in online travel. Easing fears of potential obsolescence for traditional business models due to AI appear to have reassured investors, fostering positive sentiment for the stock. This shift in expectations suggests the market is reassessing Booking's business model resilience against technological advancements.
- 2/27/2026POSITIVEBooking Shares Up Nearly 2% After Key Trading Signal
Markets Gazette reports a significant trading signal for Booking Holdings Inc. (BKNG), which saw its shares climb nearly 2% to an intraday high. This upward movement occurred shortly after a key indicator flashed at a price of $4,164.19. While modest, this rise suggests a positive market reaction to underlying factors or a favorable interpretation of the technical signal. Investors should monitor whether this momentum consolidates or if it's a temporary fluctuation, considering the high volatility typical of the online travel sector. Today's performance could indicate renewed interest or growing confidence in the stock, but it's crucial to analyze the broader context and trading volumes to confirm the trend's strength.
via Markets Gazette