Evaluating Airbnb Against Peers In Hotels, Restaurants & Leisure Industry
Portfolio Pulse from Benzinga Insights
Airbnb (NASDAQ:ABNB) is evaluated against its peers in the Hotels, Restaurants & Leisure industry. With a P/E ratio of 15.78, P/B ratio of 9.11, and P/S ratio of 9.01, Airbnb is potentially undervalued based on earnings and book value but could be overvalued relative to sales. Its ROE of 12.56% is below the industry average, indicating possible inefficiency. However, Airbnb's EBITDA of $1.69 billion and gross profit of $2.94 billion are significantly above the industry average, showing strong profitability. The company's revenue growth of 18.06% is lower than the industry average. Airbnb's lower debt-to-equity ratio of 0.46 suggests a healthier balance between debt and equity.
November 21, 2023 | 4:00 pm
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Airbnb's mixed financial indicators suggest potential undervaluation based on earnings and book value, but overvaluation based on sales. Strong profitability metrics contrast with lower ROE and revenue growth.
The lower P/E and P/B ratios compared to the industry average suggest that Airbnb might be undervalued, which could attract investors looking for value stocks. However, the high P/S ratio could deter investors who see it as overvalued based on sales. The strong EBITDA and gross profit indicate good profitability, which is positive for the stock. The lower ROE and revenue growth may raise concerns about the company's efficiency and market share expansion, potentially limiting stock appreciation in the short term.
CONFIDENCE 90
IMPORTANCE 80
RELEVANCE 100