Should you buy Expedia stock? (September 2023)

Описание: Expedia stock analysis. Ticker: EXPE
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The Big Short investor Michael Burry just picked up 100,000 shares of this travel stock.

Expedia, ticker symbol EXPE, has a current market cap of 15.5 billion dollars. It’s got 7.5 billion of cash and investments and 6.2 billion of long term debt, so the enterprise value is 14.2 billion.

Expedia has made 12.3 billion dollars of revenue over the last 12 months, 900 million in net income and 2.3 billion of free cash flow. So the company is valued at 1.2 times revenue, 18 times earnings and just 6 times free cash flow. That’s cheap and the company also has excellent gross margins of 86%.

If you look at a chart, you can see that Expedia’s revenue has now fully recovered from the pandemic. Earnings has also hit a new high, but the stock price hasn’t recovered.

That’s partly because Expedia has taken on a lot of debt. This debt was used to buy a number of brands including Airbnb clone vrbo, Trivago and hotels.com.

Right now Expedia owns more than 20 brands and 200 websites connecting travellers across the world. And healthy free cash flow means it was able to pay down some debt putting the company in a more stable position.

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