Expedia Group, Inc. (EXPE) stock analysis

P/E below its 5-year median

Expedia's P/E of 15.1 is below its own 5-year median of 25.3.

P/E below the industry

Expedia's P/E of 15.1 is below the Transportation Services median of 19.1.

EV/EBITDA below its 5-year median

Expedia's EV/EBITDA of 8.3 is below its 5-year median of 9.2.

P/B above the industry

Expedia's price-to-book of 18.74 is above the Transportation Services median of 1.92.

Trading below fair value

The share price of $257.97 is below our fair value estimate of $324.19.

Margin of safety over 20%

The price is 20.4% below fair value, more than the 20% cushion we look for.

Revenue growing under 10% a year

Revenue grew 8.1% a year over the last three fiscal years, short of the 10% we look for.

EPS growing 10%+ a year

Diluted EPS grew 65.3% a year over the last three fiscal years.

Earnings acceleration

Needs positive net income now, a year ago and five years ago.

Growing faster than the industry

Revenue grew 12.9% over the last twelve months; the Transportation Services median is 9.5%.

Guidance raised

Expedia raised its Full Year 2026 Gross Bookings outlook on Aug 5, 2026.

Gross margin improving

Gross margin was 90.5% over the last twelve months, against 89.9% a year earlier.

Return on equity over 15%

Return on equity was 141% over the last twelve months and averaged 45.9% over five years.

Return on capital over 10%

Return on invested capital was 304%, above the 10% that usually covers the cost of capital.

Return on equity above the industry

Expedia's return on equity of 141% is above the Transportation Services median of 3.8%.

Earnings over 5 years

Needs positive net income five years ago and in the latest year.

Net margin above its 5-year average

Net margin was 13.0% over the last twelve months, against a 5-year average of 5.4%.

Net margin above the industry

Expedia's net margin of 13.0% is above the Transportation Services median of 1.0%.

High debt

Debt is 331% of shareholders' equity, above the 40% we consider low.

Debt falling against equity

Debt to equity fell from 544% five years ago to 331%.

Debt covered by cash flow

Operating cash flow over the last twelve months equals 83.4% of total debt.

Interest well covered

Operating income covers interest expense 7.9 times.

Short-term assets don't cover short-term debts

Current assets are 0.77 times current liabilities.

Elevated bankruptcy risk

The Altman Z-score is 1.72; above 3 is the safe zone and below 1.8 the distress zone.

Pays a dividend

Expedia paid dividends worth 0.7% of the share price over the last twelve months.

Yield below Treasuries

The 0.7% yield is below the 4.7% on a 1-year Treasury.

Yield below the top quarter

The top quarter of US dividend payers yield 3.8% or more; Expedia yields 0.7%.

Dividend was cut

The dividend per share fell by more than 10% at least once in the last 6 fiscal years.

Covered by earnings

Dividends take 10.5% of net income.

Covered by free cash flow

Dividends take 5.9% of free cash flow.