Definitive Analysis
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Definitive Analysis

Financial Statements

Ticker

Industry

Sector

Booking Holdings Inc. (BKNG)

Company Dividend Discount ModelIndustry: Travel ServicesSector: Consumer Cyclical

Valuation Snapshot

Stable Growth$2,414.14 - $4,570.34$3,286.09
Multi-Stage$2,128.48 - $2,326.31$2,225.59
Blended Fair Value$2,755.84
Current Price$5,399.27
Upside-48.96%
DecisionDon't Buy

Dividend History & Growth Metrics (10Y)

Metric5Y CAGR10Y CAGR2024202320222021202020192018201720162015
DPS0.00%0.00%35.660.000.000.000.000.000.000.000.000.00
YoY Growth--0.00%0.00%0.00%0.00%0.00%0.00%0.00%0.00%0.00%0.00%
Dividend Yield--0.77%0.00%0.00%0.00%0.00%0.00%0.00%0.00%0.00%0.00%

Stable Growth Model (Adjusted)

(USD in Millions except Per Share Data)
Net Income To Common (M)5,044.00
(-) Cash Dividends Paid (M)1,230.00
(=) Cash Retained (M)3,814.00
MetricLOWBASEHIGH
Required Retention Ratio20.0%12.5%7.5%
(=) Cash Required (M)1,008.80630.50378.30
Cash Retained (M)3,814.003,814.003,814.00
(-) Cash Required (M)-1,008.80-630.50-378.30
(=) Excess Retained (M)2,805.203,183.503,435.70
(/) Shares Outstanding (M)32.9232.9232.92
(=) Excess Retained per Share85.2096.69104.35
LTM Dividend per Share37.3637.3637.36
(+) Excess Retained per Share85.2096.69104.35
(=) Adjusted Dividend122.56134.05141.71
WACC / Discount Rate9.64%9.64%9.64%
Growth Rate4.35%5.35%6.35%
Fair Value$2,414.14$3,286.09$4,570.34
Upside / Downside-55.29%-39.14%-15.35%

Multi-Stage Model: Projections

(USD in Millions)
MetricTTMDec-27Dec-28Dec-29Dec-30Dec-31Terminal
Net Income (M)5,044.005,313.675,597.765,897.046,212.316,544.456,740.78
Payout Ratio24.39%37.51%50.63%63.75%76.88%90.00%92.50%
Projected Dividends (M)1,230.001,993.072,834.223,759.614,775.855,890.006,235.22

Multi-Stage Valuation

MetricLOWBASEHIGH
WACC / Discount Rate9.64%9.64%9.64%
Growth Rate4.35%5.35%6.35%
Year 1 PV (M)1,800.511,817.771,835.02
Year 2 PV (M)2,313.022,357.572,402.54
Year 3 PV (M)2,771.812,852.262,934.26
Year 4 PV (M)3,180.863,304.563,431.83
Year 5 PV (M)3,543.923,717.023,896.82
PV of Terminal Value (M)56,467.9359,226.0862,090.98
Equity Value (M)70,078.0573,275.2676,591.45
Shares Outstanding (M)32.9232.9232.92
Fair Value$2,128.48$2,225.59$2,326.31
Upside / Downside-60.58%-58.78%-56.91%

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