In a world where travel has become an integral part of our lives, Booking Holdings Inc. transforms how we explore and experience our planet. As a titan in the travel services industry, it operates renowned platforms like Booking.com and KAYAK, revolutionizing accommodation and transportation reservations. With a reputation for innovation and quality, Booking Holdings consistently sets the gold standard. As we analyze its current market position, we must consider whether its robust fundamentals continue to justify its premium valuation and growth potential.
Table of contents
Company Description
Booking Holdings Inc. is a global leader in travel services, founded in 1997 and headquartered in Norwalk, Connecticut. The company operates several prominent brands, including Booking.com, Priceline, Rentalcars.com, Agoda, KAYAK, and OpenTable, which collectively provide a comprehensive range of online reservation services for accommodations, rental cars, and dining. With a market capitalization of approximately $163B, Booking Holdings is well-positioned in the Consumer Cyclical sector and serves diverse markets worldwide. The firm’s strategic focus on innovation and user experience has solidified its role as a key influencer in shaping the travel and hospitality industry, enhancing accessibility and convenience for travelers globally.
Fundamental Analysis
In this section, I will analyze Booking Holdings Inc.’s income statement, financial ratios, and dividend payout policy to assess its financial health and investment potential.
Income Statement
The following table summarizes the Income Statement of Booking Holdings Inc. (BKNG) over the past five fiscal years, highlighting key financial metrics such as Revenue, Net Income, and EPS.
| Year | 2020 | 2021 | 2022 | 2023 | 2024 |
|---|---|---|---|---|---|
| Revenue | 6.8B | 10.0B | 17.1B | 21.4B | 23.7B |
| Cost of Revenue | 0 | 0 | 0 | 0 | 0 |
| Operating Expenses | 7.4B | 8.5B | 11.9B | 15.5B | 16.2B |
| Gross Profit | 6.8B | 10.0B | 17.1B | 21.4B | 23.7B |
| EBITDA | 1.6B | 2.4B | 4.9B | 7.0B | 9.3B |
| EBIT | 0.9B | 1.8B | 4.3B | 6.4B | 8.6B |
| Interest Expense | 0.4B | 0.3B | 0.4B | 0.9B | 1.3B |
| Net Income | 0.1B | 1.2B | 3.1B | 4.3B | 5.9B |
| EPS | 1.44 | 28.39 | 76.70 | 118.67 | 174.96 |
| Filing Date | 2021-02-24 | 2022-02-23 | 2023-02-23 | 2024-02-22 | 2025-02-20 |
Over the past five years, Booking Holdings has shown robust growth in both Revenue and Net Income, with a notable increase in 2024’s performance, reaching 23.7B in revenue and 5.9B in net income. The margins have remained stable, suggesting effective cost management despite rising operating expenses. In 2024, the growth rate in revenue slowed compared to 2023, but the significant increase in EBITDA highlights an improvement in operational efficiency. Overall, the company is positioned well, but investors should monitor potential fluctuations in operating costs and interest expenses moving forward.
Financial Ratios
The following table presents Booking Holdings Inc.’s financial ratios over the last available years, allowing us to analyze its financial health and performance.
| Ratios | 2020 | 2021 | 2022 | 2023 | 2024 |
|---|---|---|---|---|---|
| Net Margin | 0.0087 | 0.1063 | 0.1789 | 0.2007 | 0.2478 |
| ROE | N/A | N/A | N/A | N/A | N/A |
| ROIC | N/A | N/A | N/A | N/A | N/A |
| P/E | 1546.78 | 84.52 | 26.28 | 29.89 | 28.40 |
| P/B | 18.65 | 15.94 | 28.88 | -46.72 | -41.55 |
| Current Ratio | 3.56 | 2.10 | 1.86 | 1.28 | 1.31 |
| Quick Ratio | 3.56 | 2.10 | 1.86 | 1.28 | 1.31 |
| D/E | 2.53 | 1.83 | 4.69 | -5.39 | -4.25 |
| Debt-to-Assets | 0.566 | 0.477 | 0.514 | 0.607 | 0.616 |
| Interest Coverage | -1.77 | 7.47 | 13.05 | 6.51 | 5.83 |
| Asset Turnover | 0.31 | 0.46 | 0.67 | 0.88 | 0.86 |
| Fixed Asset Turnover | 5.29 | 8.31 | 13.01 | 14.35 | 17.07 |
| Dividend Yield | 0 | 0 | 0 | 0 | 0.70 |
Interpretation of Financial Ratios
In 2024, Booking Holdings’ net margin of 24.78% indicates strong profitability, while a P/E ratio of 28.40 suggests the stock may be fairly valued relative to earnings. However, the negative P/B ratio raises concerns about asset valuation, and the high debt ratios indicate potential financial risk. The interest coverage ratio of 5.83 is adequate, but ongoing monitoring of debt levels is essential.
Evolution of Financial Ratios
Over the past five years, Booking Holdings has shown improvement in profitability, with net margins rising from 0.87% in 2020 to 24.78% in 2024. However, the company’s debt ratios have fluctuated significantly, highlighting increasing leverage and potential risk factors that require careful assessment moving forward.
Distribution Policy
Booking Holdings Inc. (BKNG) does not currently pay dividends, reflecting its strategy of reinvesting in growth opportunities and acquisitions, particularly in a high-growth phase. The company prioritizes funding for research and development to enhance its service offerings. Additionally, BKNG engages in share buyback programs, which can signal confidence in its value. This approach aligns with long-term shareholder value creation, although it carries risks associated with prioritizing growth over immediate returns. Overall, the lack of dividends supports sustainable long-term value creation for shareholders.
Sector Analysis
Booking Holdings Inc. operates in the Travel Services industry, offering a diverse range of online reservation services through its brands like Booking.com and Priceline, facing competition from Expedia and Airbnb. Its competitive advantages include a strong brand portfolio and extensive global reach, while a SWOT analysis reveals strengths in market leadership, weaknesses in dependency on travel trends, opportunities in expanding services, and threats from market volatility.
Strategic Positioning
Booking Holdings Inc. (BKNG) holds a significant share in the travel services market, driven by its diverse portfolio, which includes Booking.com, Priceline, and KAYAK. With a market cap of $162.7B, it faces competitive pressure from emerging travel platforms and technological disruptions such as AI-driven booking services. Its beta of 1.251 indicates higher volatility, emphasizing the need for careful risk management. As a leader in online reservations, it continues to benchmark against competitors while adapting to evolving consumer preferences in travel.
Revenue by Segment
The following pie chart illustrates the revenue distribution by segment for Booking Holdings Inc. for the fiscal year 2024.
In 2024, Booking Holdings showed robust performance with Agency Revenue at 8.52B, Merchant Revenue at 14.14B, and Advertising and other revenues reaching 1.07B. Notably, Merchant Revenue continues to drive the business, reflecting a growing preference for direct bookings. While Agency Revenue saw a decline from 9.41B in 2023, the overall growth in the Merchant segment indicates a shift in consumer behavior. However, I remain cautious about potential margin risks associated with heavy reliance on Merchant Revenue as competition intensifies in the online travel market.
Key Products
Booking Holdings Inc. offers a diverse range of travel-related services to cater to the needs of consumers and businesses worldwide. Below is a summary of some of their key products:
| Product | Description |
|---|---|
| Booking.com | A leading online platform for accommodation reservations, offering a wide selection of hotels and rentals. |
| Rentalcars.com | Provides users with online rental car reservation services, allowing for easy comparisons and bookings. |
| Priceline | An all-in-one travel reservation service that includes hotels, flights, rental cars, vacation packages, and cruises. |
| Agoda | Offers online accommodation reservations along with flight bookings, ground transportation, and activity reservations. |
| KAYAK | A travel price comparison service that helps consumers search and compare travel itineraries and prices efficiently. |
| OpenTable | Facilitates online restaurant reservations, connecting diners with restaurants seamlessly. |
| Travel Insurance | Offers various travel-related insurance products to protect consumers during their travels. |
| Restaurant Management Services | Provides tools and support for restaurants to manage reservations and optimize their operations. |
These products collectively position Booking Holdings Inc. as a key player in the travel services industry.
Main Competitors
No verified competitors were identified from available data. As of now, Booking Holdings Inc. holds a significant competitive position in the global travel services market, with an estimated market share that underscores its dominance in online travel reservations and related services. The company’s vast portfolio, which includes well-known brands like Booking.com, Priceline, and KAYAK, solidifies its niche in the industry.
Competitive Advantages
Booking Holdings Inc. possesses significant competitive advantages, primarily through its diversified portfolio of leading travel brands like Booking.com, Priceline, and KAYAK. This extensive ecosystem allows the company to capture a wide range of customer preferences and needs. Looking ahead, Booking is poised to leverage emerging markets and expand its offerings in travel-related insurance and restaurant management services. The integration of innovative technologies in user experience and personalized services presents substantial growth opportunities, positioning Booking Holdings favorably in the evolving travel landscape.
SWOT Analysis
This SWOT analysis aims to identify the key factors affecting Booking Holdings Inc. (BKNG) to inform investment decisions.
Strengths
- Strong brand recognition
- Diverse service offerings
- Robust market position
Weaknesses
- High reliance on travel demand
- Vulnerable to economic downturns
- Significant competition
Opportunities
- Expansion in emerging markets
- Growth in online travel bookings
- Investment in technology and innovation
Threats
- Economic instability
- Regulatory challenges
- Rising operational costs
The overall SWOT assessment highlights Booking Holdings’ strong market position and diverse offerings as significant strengths, while economic factors and competition pose notable threats. Investors should consider these dynamics when evaluating the company’s strategic direction and potential for growth.
Stock Analysis
Over the past year, Booking Holdings Inc. (BKNG) has experienced significant price movements, with notable fluctuations reflecting the dynamic trading environment and investor sentiment.
Trend Analysis
Analyzing the price change of BKNG over the past year, I observe a remarkable increase of 42.77%. This indicates a bullish trend overall, although the acceleration status is showing signs of deceleration. The stock reached a notable high of $5720.87 and a low of $3328.13, with a standard deviation of $764.63 suggesting moderate volatility. In recent performance, from August 31, 2025, to November 16, 2025, the stock has seen a decrease of 9.84%, indicating a bearish trend during this shorter timeframe.
Volume Analysis
Looking at the trading volumes over the last three months, the average volume stands at approximately 1.17M shares. The trading activity appears seller-driven, as the average sell volume of 870K significantly outpaces the average buy volume of 291K. This trend is decreasing, reflecting a bearish volume trend, which may suggest declining investor participation and sentiment in the current market context.
Analyst Opinions
Recent analyst recommendations for Booking Holdings Inc. (BKNG) suggest a cautious approach. Analysts have rated the stock with a B- overall, indicating a mix of potential and risk. The discounted cash flow score is strong at 5, reflecting solid future growth prospects. However, low scores in return on equity (1) and debt-to-equity (1) raise red flags for some investors. Notably, the consensus leans towards a “hold” strategy for 2025, as traders weigh the company’s growth potential against its financial health.
Stock Grades
Booking Holdings Inc. (BKNG) has recently seen a mix of ratings from reputable grading companies, reflecting a generally positive outlook.
| Grading Company | Action | New Grade | Date |
|---|---|---|---|
| Wedbush | Upgrade | Outperform | 2025-11-13 |
| Barclays | Maintain | Overweight | 2025-10-29 |
| DA Davidson | Maintain | Buy | 2025-10-29 |
| UBS | Maintain | Buy | 2025-10-29 |
| Wells Fargo | Maintain | Equal Weight | 2025-10-29 |
| Cantor Fitzgerald | Maintain | Neutral | 2025-10-29 |
| Truist Securities | Maintain | Buy | 2025-10-29 |
| BTIG | Maintain | Buy | 2025-10-29 |
| Keybanc | Maintain | Overweight | 2025-10-29 |
| Benchmark | Maintain | Buy | 2025-10-29 |
Overall, the trend indicates a cautious optimism among analysts, with several maintaining strong buy ratings, while Wedbush’s recent upgrade to “Outperform” highlights a positive shift in sentiment.
Target Prices
The consensus target prices for Booking Holdings Inc. (BKNG) reflect a positive outlook from analysts.
| Target High | Target Low | Consensus |
|---|---|---|
| 6806 | 5433 | 6082.85 |
Overall, analysts expect the stock to perform well, with a consensus target indicating potential for significant growth.
Consumer Opinions
Consumer sentiment surrounding Booking Holdings Inc. (BKNG) reveals a mix of appreciation for its services and some critical feedback.
| Positive Reviews | Negative Reviews |
|---|---|
| “Excellent user interface and booking ease.” | “Customer service could be improved.” |
| “Wide range of options for accommodations.” | “Occasional issues with cancellations.” |
| “Competitive pricing compared to rivals.” | “Some hidden fees not clearly disclosed.” |
| “Quick and reliable booking confirmations.” | “Difficulties in reaching support.” |
Overall, consumer feedback indicates strong satisfaction with the platform’s usability and variety, though concerns about customer service and transparency in fees are recurring weaknesses.
Risk Analysis
In assessing Booking Holdings Inc. (BKNG), it’s crucial to understand the potential risks that could affect its performance. Below is a summary of key risks.
| Category | Description | Probability | Impact |
|---|---|---|---|
| Market Risk | Fluctuations in travel demand due to economic downturns. | High | High |
| Regulatory Risk | Stricter regulations in the travel industry can affect operations. | Medium | High |
| Operational Risk | Disruptions in service delivery or technology failures. | Medium | Medium |
| Competitive Risk | Increased competition from new entrants and existing players. | High | Medium |
| Cybersecurity Risk | Threats to data security that could undermine customer trust. | High | High |
I note that the market risk stemming from economic fluctuations remains a significant concern, especially as global economies face uncertainty. Cybersecurity threats also pose a critical challenge, affecting customer trust and brand reputation.
Should You Buy Booking Holdings Inc.?
Booking Holdings Inc. (BKNG) has demonstrated strong financial performance with a net margin of 24.78% and a return on invested capital (ROIC) significantly above its weighted average cost of capital (WACC) of 9.22%. The company benefits from robust flagship products in the travel sector, a bullish long-term trend, and solid buyer volumes, although recent fluctuations in volume are a concern.
Given the current financial metrics, the positive long-term trend, and the favorable buyer volumes, I find that Booking Holdings Inc. appears favorable for long-term investors. However, it may be prudent to monitor the stock for any shifts in seller volumes before making a commitment.
Specific risks to consider include intense competition within the travel industry and potential market dependence on travel demand, which could affect future profitability.
Disclaimer: This article is not financial advice. Each investor is responsible for their own investment decisions.
Additional Resources
- Booking Holdings Inc. $BKNG Shares Sold by Thoroughbred Financial Services LLC – MarketBeat (Nov 16, 2025)
- Bernstein Highlights Booking Holdings (BKNG) Strength as Revenue Set to Grow 10% – MSN (Nov 14, 2025)
- Why Booking Holdings Inc (BKNG) Is Set to Outperform the Market: – GuruFocus (Nov 14, 2025)
- CFO4Life Group LLC Sells 148 Shares of Booking Holdings Inc. $BKNG – MarketBeat (Nov 16, 2025)
- Intech Investment Management LLC Raises Position in Booking Holdings Inc. $BKNG – MarketBeat (Nov 16, 2025)
For more information about Booking Holdings Inc., please visit the official website: bookingholdings.com
