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1. Company Snapshot

1.a. Company Description

Booking Holdings Inc.provides travel and restaurant online reservation and related services worldwide.The company operates Booking.com, which offers online accommodation reservations; Rentalcars.com that provides online rental car reservation services; Priceline, which offer online travel reservation services, and consumers hotel, flight, and rental car reservation services, as well as vacation packages, cruises, and hotel distribution services.


It also operates Agoda that provides online accommodation reservation services, as well as flight, ground transportation and activities reservation services.In addition, the company operates KAYAK, an online price comparison service that allows consumers to search and compare travel itineraries and prices, comprising airline ticket, accommodation reservation, and rental car reservation information; and OpenTable for booking online restaurant reservations.Further, it offers travel-related insurance products, and restaurant management services to consumers, travel service providers, and restaurants.


The company was formerly known as The Priceline Group Inc.and changed its name to Booking Holdings Inc.in February 2018.


The company was founded in 1997 and is headquartered in Norwalk, Connecticut.

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1.b. Last Insights on BKNG

Booking Holdings' recent performance was negatively impacted by a challenging outlook for 2026, with certain macro indicators deteriorating, prompting preemptive measures from investors. However, the company's Q4 results, announced on February 19, beat estimates with 16% revenue growth and 285M room nights. A pending 25:1 stock split and robust free cash flow growth also bolstered investor sentiment. Analysts boosted their forecasts following the upbeat Q4 results. Additionally, a significant Power Inflow alert and easing AI-driven disruption fears contributed to a more positive outlook.

1.c. Company Highlights

2. Booking Holdings' Q4 2025 Earnings: Strong Execution and Growth

Booking Holdings' fourth quarter 2025 results demonstrated strong execution, with room nights reaching 285 million, a 9% year-over-year increase, exceeding the high end of expectations. Gross bookings and revenue both grew 16%, with adjusted EBITDA reaching $2.2 billion, up 19% from the prior year quarter. Adjusted earnings per share grew 17% year-over-year to $48.8, beating estimates of $48.69. For the full year, room nights grew 8% to over 1.2 billion, with gross bookings and revenue growth up 12% and 13%, respectively. Adjusted EBITDA was over $9.9 billion, increasing 20% year-over-year, with adjusted margins reaching 36.9%.

Publication Date: Feb -20

📋 Highlights
  • Adjusted EBITDA Growth:: 2025 full-year adjusted EBITDA reached $9.9 billion, a 20% YoY increase, with margins of 36.9%.
  • Genius Loyalty Program Impact:: Levels 2 and 3 members accounted for 30% of active users but 50%+ of Booking.com room nights, driving higher direct bookings.
  • Flights Bookings Surge:: Airline ticket sales climbed 37% YoY to 68 million, contributing to 25% growth in merchant gross bookings ($130 billion, 70% of total).
  • Transformation Program Savings:: Delivered $550 million in annual run-rate savings by 2025, with $250 million in-year savings reinvested into strategic priorities.
  • 2026 Guidance:: Targets gross bookings and revenue growth 100 bps above long-term algorithm (8%), with EBITDA growth outpacing revenue and FX tailwinds.

Operational Highlights

The company made significant progress on its strategic priorities, including its Connected Trip vision, with transactions growing in the high 20% range and representing a low double-digit percentage of Booking.com's total transactions. Flights bookings saw 37% year-over-year growth, with 68 million airline tickets booked across platforms. The Genius loyalty program continues to expand, with Level 2 and 3 Genius travelers representing over 30% of the active base and accounting for a high 50% share of room nights.

Regional Performance

In Asia, room nights grew at a low double-digit rate, driven by Agoda and Booking.com's complementary strengths. The company continues to invest in product improvements, payments, and servicing capabilities to enhance the traveler experience. The alternative accommodations business is still growing, albeit at a slower pace, with an 8% year-over-year increase in listings, now at 8.6 million.

Outlook and Valuation

For 2026, the company targets full-year constant currency top-line growth approximately 100 basis points ahead of its long-term growth algorithm, with bottom-line performance in line with that framework. With a P/E Ratio of 24.07 and an EV/EBITDA of 22.48, the market appears to be pricing in a reasonable growth trajectory. Analysts estimate next year's revenue growth at 8.5%, which is slightly above the company's long-term growth algorithm. The company's focus on generative AI, fintech, and expansion into new verticals is expected to drive future growth.

Dividend and Shareholder Returns

The Board of Directors approved a 9.4% increase to the quarterly cash dividend per share to $10.50 per share and a 25-for-1 stock split. In 2025, the company returned a total of $8.2 billion to shareholders, including $5.9 billion in share repurchases and $1.2 billion through its quarterly cash dividend program, highlighting its commitment to shareholder returns.

3. NewsRoom

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1 Undervalued Stock Investors Can Buy Now in April (2026)

01:42

Source: fool.com

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Carnival and Norwegian Cruise Line Fall 4%: Fuel Costs Are Winning the Battle Against Booking Strength

Apr -02

Source: 247wallst.com

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KAYAK Launches New Airfare Trends Dashboard to Track Flight Prices

Apr -02

Source: globenewswire.com

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Booking Holdings: The Reverse Split Creates Opportunity

Apr -02

Source: seekingalpha.com

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Wall Street's First Blockbuster Stock Split of the Year Has Arrived -- and This Industry Titan Has Soared 31,800% Over the Last 25 Years

Apr -02

Source: fool.com

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Kurt Sievers, Retired CEO of NXP Semiconductors, Appointed to Booking Holdings Board of Directors

Apr -01

Source: prnewswire.com

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Global Travel Concerns Are Driving Down Bookings Holdings' Stock. Is the Travel Giant Still a Good Long-Term Buy?

Apr -01

Source: fool.com

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Booking Holdings (BKNG) Advances But Underperforms Market: Key Facts

Mar -31

Source:

4. Business Breakdown

4.a. Revenues by Country

4.b. Revenues by Segment

5. Expected revenues mid-term growth (10.50%)

6. Segments

Travel Services

Expected Growth: 10.5%

Increase in online travel bookings driven by digitalization and growing demand for leisure travel

7. Detailed Products

Booking.com

Booking.com is a travel e-commerce company that allows users to book accommodations, including hotels, apartments, and vacation rentals.

Priceline

Priceline is a travel website that allows users to book travel arrangements, including hotel rooms, flights, and car rentals, often at discounted prices.

Agoda

Agoda is a travel e-commerce company that specializes in booking accommodations in Asia, with a focus on hotels, resorts, and vacation rentals.

Kayak

Kayak is a travel search engine that allows users to compare prices on travel arrangements, including flights, hotels, and car rentals.

Rentals United

Rentals United is a vacation rental platform that allows users to search and book vacation rentals, including apartments, houses, and villas.

Travel Insurance

Booking Holdings offers travel insurance products to protect users against trip cancellations, interruptions, and delays.

8. Booking Holdings Inc.'s Porter Forces

Forces Ranking

Threat Of Substitutes

The threat of substitutes for Booking Holdings Inc. is moderate, as there are alternative booking platforms and travel agencies available, but the company's strong brand and wide range of accommodations make it a preferred choice for many customers.

Bargaining Power Of Customers

The bargaining power of customers is high, as they have numerous options for booking travel accommodations and can easily compare prices and services across different platforms, allowing them to negotiate better deals.

Bargaining Power Of Suppliers

The bargaining power of suppliers is relatively low, as Booking Holdings Inc. works with a large number of accommodation providers, giving the company significant negotiating power and allowing it to set competitive commission rates.

Threat Of New Entrants

The threat of new entrants is moderate, as while it is possible for new companies to enter the online travel booking market, the high marketing and customer acquisition costs, as well as the established brand recognition of Booking Holdings Inc., create barriers to entry.

Intensity Of Rivalry

The intensity of rivalry in the online travel booking market is high, with several major players, including Expedia and Airbnb, competing for market share, driving innovation, and pushing prices down.

9. SWOT Analysis

Strength

Weaknesses

Opportunities

Threats

10. Capital Structure

10.a. Balance Sheet

10.b. Weighted Average Cost of capital

Value
Debt Weight 130.78%
Debt Cost 9.40%
Equity Weight -30.78%
Equity Cost 10.96%
WACC 8.92%
Leverage -424.90%

11. Quality Control: Booking Holdings Inc. passed 6 out of 9 key points

12.a Historical Valuation

12.b Price/Earnings Ratio

12.c Margin Valuation

12.d Peers Valuation

Peers Group Analysis

Stock-Card
Travel + Leisure

A-Score: 6.5/10

Value: 7.6

Growth: 4.7

Quality: 6.0

Yield: 7.0

Momentum: 7.5

Volatility: 6.0

1-Year Total Return ->

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PulteGroup

A-Score: 5.8/10

Value: 6.0

Growth: 8.8

Quality: 7.7

Yield: 2.0

Momentum: 4.0

Volatility: 6.3

1-Year Total Return ->

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Stock-Card
Booking

A-Score: 5.8/10

Value: 3.6

Growth: 8.7

Quality: 8.0

Yield: 1.0

Momentum: 5.0

Volatility: 8.3

1-Year Total Return ->

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Stock-Card
Airbnb

A-Score: 5.1/10

Value: 2.1

Growth: 9.2

Quality: 8.7

Yield: 0.0

Momentum: 4.0

Volatility: 6.7

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Stock-Card
Royal Caribbean Cruises

A-Score: 4.8/10

Value: 2.5

Growth: 6.8

Quality: 6.3

Yield: 1.0

Momentum: 7.0

Volatility: 5.3

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Stock-Card
Lennar

A-Score: 4.8/10

Value: 6.8

Growth: 4.3

Quality: 5.9

Yield: 3.0

Momentum: 2.5

Volatility: 6.3

1-Year Total Return ->

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Peers Metrics

12.e Scoring Insights

12.f DCF BETA

Parameters

Short Term Growth

Short term Time

Long-Term Growth

WACC

Target Price

4194.31$

Current Price

4194.31$

Potential

-0.00%

Expected Cash-Flows