Expedia Group, Inc. (EXPE) Fundamental Analysis: Bull vs. Bear Case

EXPE

Expedia Group, Inc.

Fundamental data last updated:May 12, 2026

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company profile

SECTOR

Consumer Cyclical

industry

Travel Services

Exchange

NASDAQ

County of HQ

US

Next Earnings Date

08/06/2026

Business Summary

Expedia Group, Inc. operates as an online travel company in the United States and internationally. The company operates through Retail, B2B, and trivago segments. Its brand portfolio include Brand Expedia, a full-service online travel brand with localized websites; Hotels.com for marketing and distributing lodging accommodations; Vrbo, an online marketplace for the alternative accommodations; Orbitz, Travelocity, and CheapTickets travel websites; ebookers, an online EMEA travel agent for travelers an array of travel options; Hotwire, which offers travel booking services; CarRentals.com, an online car rental booking service; Classic Vacations, a luxury travel specialist; and Expedia Cruise, a provider of advice for travelers booking cruises. The company's brand portfolio also comprise Expedia Partner Solutions, a business-to-business brand that provides travel and non-travel vertical, which includes corporate travel management, airlines, travel agents, online retailers and financial institutions; and Egencia that provides corporate travel management services. In addition, its brand portfolio consists of Trivago, a hotel metasearch website, which send referrals to online travel companies and travel service providers from hotel metasearch websites; and Expedia Group Media solutions. Further, the company provides online travel services through its Wotif.com, lastminute.com.au, travel.com.au, Wotif.co.nz, and lastminute.co.nz brands; loyalty programs; hotel accommodations and alternative accommodations; and advertising and media services. It serves leisure and corporate travelers. The company was formerly known as Expedia, Inc. and changed its name to Expedia Group, Inc. in March 2018. Expedia Group, Inc. was founded in 1996 and is headquartered in Seattle, Washington.

VALUATION

P/E

17.34 Market Cap ($M USD)

$25.91B

Forward P/E

6.60 PEG

0.04 PRICE TO SALES

1.71 PRICE TO BOOK

46.84 EV / EBITDA

6.86 5-Year Average P/E

Free Cash Flow Yield

18.08%

DCF Value

$246.04

Graham Number

$36.86

Price to FCF

5.53 EV to FCF

4.87 Earnings Yield

5.77%

FCF Yield

18.08%

DIVIDEND

Yield

0.76%

Annual Payout

$1.68

Payout Ratio

13.30%

Consecutive Years of Dividend Growth

5-Year Dividend Growth Rate

Financial Health & Profitability

Earnings Per Share

$12.77

Next Year EPS Growth Estimate

$33.57

Next Year Revenue Growth Estimate

$2.05T

Return on Equity (ROE)

154.33%

FREE CASH FLOW

Operating Margin

15.02%

Debt-to-Equity

5.19 Piotroski F-Score

7 Altman Z-Score

1.38 Return on Invested Capital (ROIC)

32.11%

Current Ratio

0.73 Quick Ratio

0.73 Net Debt to EBITDA

-0.93

Interest Coverage

6.47 Gross Profit margin

88.82%

FCF PER SHARE

$38.46

REVENUE PER SHARE

$124.53

Gainseekers Quantitative Analysis

Summary

Expedia Group’s valuation presents a compelling narrative for value investors. The stock has traded below its DCF Value, suggesting a potential undervaluation. However, the Price/Book ratio is alarmingly high, indicating market skepticism about asset efficiency. The Forward P/E ratio is attractively low, hinting at expected earnings growth, yet the Altman Z-score raises red flags about financial distress. Despite a robust Earnings Yield, the company’s safety and growth prospects are mixed, demanding cautious optimism.

AI Exposure / Tech Reliance

Operating in the travel services industry, Expedia is uniquely positioned to leverage AI for personalized travel experiences and efficient booking processes. The integration of AI can enhance customer satisfaction and streamline operations, crucial in a tech-driven market. As the industry evolves, Expedia's adaptability to tech shifts will be pivotal for maintaining its competitive edge.

The Bull Case

For the discerning GARP investor, Expedia offers a tantalizing opportunity. With an impressive ROIC of 32.11%, the company demonstrates exceptional capital efficiency, translating into strong shareholder returns. The FCF Yield is robust, indicating healthy cash generation relative to its market cap. A Piotroski F-Score of 7 suggests solid financial health, while a Gross Profit Margin of 88.82% underscores its pricing power and operational prowess.

The Bear Case

Despite its strengths, Expedia faces significant structural risks. The Price/Book ratio is exorbitantly high, raising concerns about overvaluation relative to its tangible assets. The Altman Z-score signals potential financial distress, and the Current Ratio below 1 indicates liquidity challenges. Additionally, the stock's proximity to its 52-week high suggests technical overextension, warranting caution for potential investors.

Market Sentiment & Smart Money

Short Interest %

Analyst Consensus

Hold

Average Analyst Price Target

$271.39

Institutional Ownership %

1-Year Beta

1.30 Insider Buying % (6 Mo)

Distance to 52-Week High

37.18%

Distance to 52-Week Low

29.54%

EARNINGS SURPRISE %

39.01%

50-DAY SMA

$239.80

200-DAY SMA

$237.15

⚠️ Financial Disclaimer:
This content is for informational purposes only and is not financial advice. Information may be delayed or inaccurate. We may earn a commission from partner links.