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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 driven by strong Q1 2025 earnings, beating estimates with revenue growth and record margins. The company's dominant industry position, reliable mid-teens earnings growth, and aggressive buybacks have justified its fair valuation of 25x forward earnings. Additionally, Booking's consistent outperformance and strategic use of AI position it well for future growth, despite facing FX headwinds and fierce competition. The company's recent announcement of presenting at the Bank of America Securities 2025 Global Technology Conference and its integration with China Airlines on Freightos' WebCargo platform further highlight its growth prospects.

1.c. Company Highlights

2. Booking Holdings' Strong Q3 2025 Results Exceed Expectations

Booking Holdings reported robust financial results for the third quarter of 2025, with revenue growing 13% year-over-year to $9 billion, exceeding the high end of guidance by 4 percentage points. Adjusted EBITDA reached $4.2 billion, a 15% increase from the prior year quarter, and adjusted earnings per share grew 19% year-over-year to $99.50 per share, significantly beating estimates of $95.85. The company's gross bookings grew 14% year-over-year, driven by an 8% increase in room nights to 323 million. As Ewout Steenbergen, CFO, noted, the globally diversified portfolio proved its value, with robust growth in certain travel corridors offsetting softer demand in others.

Publication Date: Oct -30

📋 Highlights
  • Strong Financial Outperformance:: Room nights rose 8% YoY to 323 million, gross bookings and revenue grew 14% and 13%, while Adjusted EBITDA hit $4.2 billion (+15%) and adjusted EPS surged 19% to $99.50.
  • Connected Trip Strategy Progress:: Genius loyalty program users in Levels 2–3 now account for 30% of active travelers and mid-50% of room nights (last 4 quarters), with AI-driven enhancements improving search, chatbots, and personalization.
  • Full-Year 2025 Guidance Raised:: Room nights up 7%, gross bookings 11–12%, revenue 12%, adjusted EBITDA 17–18%, and adjusted EPS over 20% growth, driven by $450 million annual savings from transformation initiatives.
  • B2B and Social Media Momentum:: Direct channel growth in the U.S. and B2B contract wins, alongside $100s of millions in social media spend, reflect diversification and performance marketing success, despite disciplined ROI focus.
  • AI and Operational Efficiency Gains:: Early AI adoption with OpenAI improved search/conversion; $70 million Q3 savings from transformation programs, with $225 million in-year savings and $450–$550 million annualized run rate savings targeted.

Segment Performance and Strategic Initiatives

The company's room night growth was broad-based across all major regions, with each region exceeding expectations. The direct mix was in the mid-60% range over the last 4 quarters, up from the low 60% range 1 year ago, indicating progress in strengthening the direct relationship with travelers. The company has also seen tangible progress in its loyalty program, with Genius Levels 2 and 3 making up over 30% of the active base and accounting for a mid-50% range of room nights over the last 4 quarters.

Valuation and Growth Expectations

With a P/E Ratio of 32.59 and an EV/EBITDA of 18.09, the market is pricing in a certain level of growth for Booking Holdings. Analysts estimate next year's revenue growth at 9.0%. Given the company's strong Q3 2025 results and guidance, it remains to be seen whether the company can continue to exceed expectations and justify its current valuation multiples.

Operational Efficiency and AI Initiatives

The company has made significant progress in its Transformation Program, realizing $70 million of in-quarter savings and expecting to deliver $500 million to $550 million in run rate savings. Booking Holdings is also investing in AI initiatives, including AI-powered chatbots and personalized suggestions, which are expected to enhance the traveler and partner experience. The company is participating in the first wave of apps with OpenAI and is seeing early signs of success, including faster search and higher customer satisfaction.

Outlook and Guidance

For the fourth quarter, the company expects room night growth between 4-6%, with gross bookings increasing 11-13% and revenue growing 10-12%. Adjusted EBITDA is expected to be between $2 billion and $2.1 billion, representing 14% growth at the high end. Full-year 2025 guidance has been increased, with room nights up 7%, gross bookings up 11-12%, revenue up 12%, adjusted EBITDA up 17-18%, and adjusted EPS up slightly more than 20%.

3. NewsRoom

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Move over bucket list, here is the UK's ‘Not Hot' destination list

Dec -04

Source: globenewswire.com

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From Tickets to Takeoff: Gig-Tripping Made Seamless with viagogo and Booking.com

Dec -03

Source: businesswire.com

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1832 Asset Management L.P. Raises Stake in Booking Holdings Inc. $BKNG

Dec -03

Source: defenseworld.net

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OpenTable reveals its annual Top 100 Restaurants in Canada for 2025, along with 2026 dining trends

Dec -02

Source: globenewswire.com

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Booking Holdings: Solid Growth, Good Valuation

Dec -02

Source: seekingalpha.com

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AI Pushes Black Friday E-Commerce Sales to a Record-High: 5 Picks

Dec -01

Source: zacks.com

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Bell Asset Management Ltd Sells 1,510 Shares of Booking Holdings Inc. $BKNG

Nov -27

Source: defenseworld.net

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Baltimore Washington Financial Advisors Inc. Buys 415 Shares of Booking Holdings Inc. $BKNG

Nov -27

Source: defenseworld.net

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: 6.6/10

Value: 8.0

Growth: 4.7

Quality: 6.0

Yield: 7.0

Momentum: 8.0

Volatility: 5.7

1-Year Total Return ->

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Stock-Card
Booking

A-Score: 6.3/10

Value: 3.8

Growth: 8.7

Quality: 8.0

Yield: 1.0

Momentum: 7.5

Volatility: 8.7

1-Year Total Return ->

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PulteGroup

A-Score: 5.8/10

Value: 5.9

Growth: 8.8

Quality: 7.6

Yield: 2.0

Momentum: 4.0

Volatility: 6.3

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Lennar

A-Score: 5.4/10

Value: 7.5

Growth: 7.2

Quality: 7.1

Yield: 3.0

Momentum: 1.5

Volatility: 6.3

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Royal Caribbean Cruises

A-Score: 5.1/10

Value: 2.5

Growth: 6.9

Quality: 6.2

Yield: 1.0

Momentum: 8.5

Volatility: 5.3

1-Year Total Return ->

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Stock-Card
Airbnb

A-Score: 5.0/10

Value: 1.9

Growth: 9.2

Quality: 8.4

Yield: 0.0

Momentum: 4.0

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

5197.04$

Current Price

5197.04$

Potential

-0.00%

Expected Cash-Flows