Booking Holdings

Methodology

Booking Holdings' online travel agency model through Booking.com and Priceline generates commission revenue from hotel and travel bookings with minimal asset requirements. The company's dominant European presence and network effects provide competitive advantages, though travel demand cyclicality creates earnings volatility. This calculation works well during stable travel periods but becomes unreliable during disruptions like pandemics that can collapse travel demand suddenly.

Methodology

Booking Holdings' PEG ratio can range from 1.5-3.0 depending on travel recovery expectations and market share assumptions versus Airbnb and direct booking channels. The company's high margins and strong competitive position justify premium valuations during normal times, but travel sensitivity creates risk. Compare to other OTAs and travel platforms to assess whether Booking's scale and European dominance command appropriate premiums despite increasing competition.

Methodology

Booking Holdings does not pay a dividend, instead deploying cash flow into massive share buybacks that have significantly reduced share count over time. The PEGY mirrors the PEG, but the aggressive buyback program effectively returns capital to shareholders in a tax-efficient manner. For Booking, investors focus on market share trends, take rates, and operating leverage rather than seeking traditional income returns.