Booking Holdings Price To Book vs. Current Valuation
| BKNG34 Stock | BRL 176.05 0.52 0.29% |
For Booking Holdings profitability analysis, we use financial ratios and fundamental drivers that measure the ability of Booking Holdings to generate income relative to revenue, assets, operating costs, and current equity. These fundamental indicators attest to how well Booking Holdings utilizes its assets to generate profit and value for its shareholders. The profitability module also shows relationships between Booking Holdings's most relevant fundamental drivers. It provides multiple suggestions of what could affect the performance of Booking Holdings over time as well as its relative position and ranking within its peers.
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Booking Holdings Current Valuation vs. Price To Book Fundamental Analysis
Comparative valuation techniques use various fundamental indicators to help in determining Booking Holdings's current stock value. Our valuation model uses many indicators to compare Booking Holdings value to that of its competitors to determine the firm's financial worth. Booking Holdings is number one stock in price to book category among its peers. It also is the top company in current valuation category among its peers reporting about 19,579,749,014 of Current Valuation per Price To Book. Comparative valuation analysis is a catch-all model that can be used if you cannot value Booking Holdings by discounting back its dividends or cash flows. This model doesn't attempt to find an intrinsic value for Booking Holdings' Stock. Still, instead, it compares the stock's price multiples to a benchmark or nearest competition to determine if the stock is relatively undervalued or overvalued.Booking Current Valuation vs. Price To Book
Price to Book (P/B) ratio is used to relate a company book value to its current market price. A high P/B ratio indicates that investors expect executives to generate more returns on their investments from a given set of assets. Book value is the accounting value of assets minus liabilities.
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| = | 21.14 X |
Price to Book ratio is mostly used in financial services industries where assets and liabilities are typically represented by dollars. Although low Price to Book ratio generally implies that the firm is undervalued, it is often a good indicator that the company may be in financial or managerial distress and should be investigated more carefully.
Enterprise Value is a firm valuation proxy that approximates the current market value of a company. It is typically used to determine the takeover or merger price of a firm. Unlike Market Cap, this measure takes into account the entire liquid asset, outstanding debt, and exotic equity instruments that the company has on its balance sheet. When a takeover occurs, the parent company will have to assume the target company's liabilities but will take possession of all cash and cash equivalents.
Booking Holdings |
| = | 414 B |
Enterprise Value can be a useful tool to compare companies with different capital structures. Long term liability and current cash or cash equivalents can have a huge impact on market valuation of a given company.
Booking Current Valuation vs Competition
Booking Holdings is the top company in current valuation category among its peers. After adjusting for long-term liabilities, total market size of Travel Services industry is currently estimated at about 1.02 Trillion. Booking Holdings totals roughly 414 Billion in current valuation claiming about 41% of equities listed under Travel Services industry.
Booking Holdings Profitability Projections
The most important aspect of a successful company is its ability to generate a profit. For investors in Booking Holdings, profitability is also one of the essential criteria for including it into their portfolios because, without profit, Booking Holdings will eventually generate negative long term returns. The profitability progress is the general direction of Booking Holdings' change in net profit over the period of time. It can combine multiple indicators of Booking Holdings, where stable trends show no significant progress. An accelerating trend is seen as positive, while a decreasing one is unfavorable. A rising trend means that profits are rising, and operational efficiency may be rising as well. A decreasing trend is a sign of poor performance and may indicate upcoming losses.
Booking Holdings Inc. provides travel and restaurant online reservation and related services worldwide. Booking Holdings Inc. was founded in 1997 and is headquartered in Norwalk, Connecticut. BOOKING DRN operates under Travel Services classification in Brazil and is traded on Sao Paolo Stock Exchange. It employs 19500 people.
Booking Profitability Driver Comparison
Profitability drivers are factors that can directly affect your investment outlook on Booking Holdings. Investors often realize that things won't turn out the way they predict. There are maybe way too many unforeseen events and contingencies during the holding period of Booking Holdings position where the market behavior may be hard to predict, tax policy changes, gold or oil price hikes, calamities change, and many others. The question is, are you prepared for these unexpected events? Although some of these situations are obviously beyond your control, you can still follow the important profit indicators to know where you should focus on when things like this occur. Below are some of the Booking Holdings' important profitability drivers and their relationship over time.
Use Booking Holdings in pair-trading
One of the main advantages of trading using pair correlations is that every trade hedges away some risk. Because there are two separate transactions required, even if Booking Holdings position performs unexpectedly, the other equity can make up some of the losses. Pair trading also minimizes risk from directional movements in the market. For example, if an entire industry or sector drops because of unexpected headlines, the short position in Booking Holdings will appreciate offsetting losses from the drop in the long position's value.Booking Holdings Pair Trading
Booking Holdings Pair Trading Analysis
The ability to find closely correlated positions to Booking Holdings could be a great tool in your tax-loss harvesting strategies, allowing investors a quick way to find a similar-enough asset to replace Booking Holdings when you sell it. If you don't do this, your portfolio allocation will be skewed against your target asset allocation. So, investors can't just sell and buy back Booking Holdings - that would be a violation of the tax code under the "wash sale" rule, and this is why you need to find a similar enough asset and use the proceeds from selling Booking Holdings to buy it.
The correlation of Booking Holdings is a statistical measure of how it moves in relation to other instruments. This measure is expressed in what is known as the correlation coefficient, which ranges between -1 and +1. A perfect positive correlation (i.e., a correlation coefficient of +1) implies that as Booking Holdings moves, either up or down, the other security will move in the same direction. Alternatively, perfect negative correlation means that if Booking Holdings moves in either direction, the perfectly negatively correlated security will move in the opposite direction. If the correlation is 0, the equities are not correlated; they are entirely random. A correlation greater than 0.8 is generally described as strong, whereas a correlation less than 0.5 is generally considered weak.
Correlation analysis and pair trading evaluation for Booking Holdings can also be used as hedging techniques within a particular sector or industry or even over random equities to generate a better risk-adjusted return on your portfolios.Use Investing Themes to Complement your Booking Holdings position
In addition to having Booking Holdings in your portfolios, you can quickly add positions using our predefined set of ideas and optimize them against your very unique investing style. A single investing idea is a collection of funds, stocks, ETFs, or cryptocurrencies that are programmatically selected from a pull of investment themes. After you determine your investment opportunity, you can then find an optimal portfolio that will maximize potential returns on the chosen idea or minimize its exposure to market volatility.Did You Try This Idea?
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Compulsion
Companies involved in research, development, and manufacturing of products with compulsion characteristics such as cigarettes, addictive drugs and alcohol. The Compulsion theme has 40 constituents at this time.
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Additional Information and Resources on Investing in Booking Stock
When determining whether Booking Holdings is a strong investment it is important to analyze Booking Holdings' competitive position within its industry, examining market share, product or service uniqueness, and competitive advantages. Beyond financials and market position, potential investors should also consider broader economic conditions, industry trends, and any regulatory or geopolitical factors that may impact Booking Holdings' future performance. For an informed investment choice regarding Booking Stock, refer to the following important reports:Check out Trending Equities. For information on how to trade Booking Stock refer to our How to Trade Booking Stock guide.You can also try the Theme Ratings module to determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance.
To fully project Booking Holdings' future profitability, investors should examine all historical financial statements. These statements provide investors with a comprehensive snapshot of the financial position of Booking Holdings at a specified time, usually calculated after every quarter, six months, or one year. Three primary documents fall into the category of financial statements. These documents include Booking Holdings' income statement, its balance sheet, and the statement of cash flows.