One-glance verdict
Undervalued
$487.31 our estimate vs market $280.70
Wall Street consensus: $338.83 (-30.5% lower than our fair-value estimate)
42% below our estimate, below the bear case
Fundamentals snapshot
Expedia Group, Inc.
EXPE · NMS · Consumer Cyclical · Travel Services
Current price
$280.70
52-week range
$185.34 - $342.00
Market cap
$33.69B
Balance sheet
Healthy
7.23x Adequate
Net cash $1.44B. Interest coverage shows how many times profit covers the interest bill.
What stands out
3 Rewards
1 Risk
3 rewards · 1 risks
- Reward Revenue grew 6.6% last year.
- Reward Returns 89.5% on equity, ahead of 60% of its peers.
- Reward Free cash flow was positive in 9/10 years.
- Risk Insider ownership is only 0.6% (peer median: 1.3%).
What this company does
Expedia Group, Inc.
Expedia Group is an online travel company that owns well-known booking websites like Expedia.com, Hotels.com, and the vacation rental site Vrbo. The company primarily makes money by taking a commission (a small percentage of the price) whenever someone books a hotel, flight, or car rental through one of its platforms. As a result, its financial success is directly tied to the overall health of the global travel industry and how much people and businesses are spending on trips.
How the company got here
Expedia started in 1996 as a small division within Microsoft with the new idea of letting people book their own travel online. It was spun off as a separate company in 1999 and grew rapidly by acquiring many other well-known travel sites. Over the years, it purchased brands like Hotels.com, Orbitz, Travelocity, and HomeAway (which became Vrbo), turning itself into a global travel powerhouse. This strategy of buying other companies created a huge portfolio of travel services, but also led to complex technology challenges that the company has recently worked to simplify.
What it actually does
Expedia Group is an online travel company that acts like a giant digital travel agent. Through its collection of websites and apps, you can book almost any part of a trip, including flights, hotels, vacation rentals, rental cars, cruises, and activities. The company makes money by taking a commission (a percentage of the booking price) from hotels and airlines, or by buying travel services in bulk and selling them to travelers at a markup (the difference between the wholesale price and the retail price). It serves millions of regular travelers and also provides the technology for other businesses, like airlines or banks, to offer travel booking to their own customers.
B2C (Business-to-Consumer)
This is the largest and most well-known part of Expedia, representing the majority of its revenue. It includes the websites and apps that travelers use directly, such as Brand Expedia, Hotels.com, and Vrbo. When you book a hotel on Hotels.com or a vacation home on Vrbo, you are using the B2C segment. This part of the business makes money primarily from fees and commissions on bookings for lodging, which is its biggest revenue source, as well as flights and other travel products.
B2B (Business-to-Business)
This fast-growing segment provides the engine for other companies' travel businesses. Instead of serving individual travelers, this division offers Expedia's technology and vast inventory of hotels and flights to other companies, such as airlines, hotel chains, and corporate travel agencies. For example, an airline might use Expedia's technology to power the 'hotel' section of its own website. This segment earns money by charging fees for access to its technology and travel supply, often with lower customer acquisition costs (the expense of winning a new customer) than its consumer-facing brands.
trivago
Expedia holds a majority stake in trivago, which operates as a travel metasearch engine. Unlike Expedia's other sites where you book directly, trivago gathers and compares hotel prices from hundreds of different websites, including competitors. Its main job is to send referrals (links that direct users to another site) to these other online travel agencies and hotel providers. trivago makes money not from bookings, but through a cost-per-click model, where it gets paid a small fee each time a user clicks on one of the displayed hotel offers.
What management is betting on now
Expedia's leadership is heavily focused on using artificial intelligence (AI) to make trip planning easier and more personalized for travelers. They are also concentrating on growing their B2B business, which they see as a major opportunity to power the travel industry for other companies. Another key priority is unifying their different brands, such as Expedia, Hotels.com, and Vrbo, through a single technology platform and a shared loyalty program called One Key, to encourage customers to book all their travel within the Expedia ecosystem.
Price history
How the share price has moved
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Earnings history
Last 8 quarters — what happened
Click any quarter to read the call summary and what the numbers say.
FY2024 Q3
$-1.69B
FY2024 Q4
$7.00M
FY2025 Q1
$2.76B
FY2025 Q2
$921.00M
FY2025 Q3
$-686.00M
FY2025 Q4
$119.00M
FY2026 Q1
$3.75B
FY2026 Q2
$1.28B
Revenue
$4.32B
Net income
$878.00M
Diluted EPS
7.16
Operating cash flow
$1.48B
Free cash flow
$1.28B
Fetching…
Sources
Revenue
$3.43B
Net income
$-6.00M
Diluted EPS
-0.05
Operating cash flow
$3.93B
Free cash flow
$3.75B
Fetching…
Sources
Revenue
$3.55B
Net income
$205.00M
Diluted EPS
1.56
Operating cash flow
$304.00M
Free cash flow
$119.00M
Fetching…
Sources
Revenue
$4.41B
Net income
$959.00M
Diluted EPS
7.33
Operating cash flow
$-497.00M
Free cash flow
$-686.00M
Fetching…
Sources
Revenue
$3.79B
Net income
$330.00M
Diluted EPS
2.48
Operating cash flow
$1.12B
Free cash flow
$921.00M
Fetching…
Sources
Revenue
$2.99B
Net income
$-200.00M
Diluted EPS
-1.56
Operating cash flow
$2.95B
Free cash flow
$2.76B
Fetching…
Sources
Revenue
$3.18B
Net income
$299.00M
Diluted EPS
2.10
Operating cash flow
$198.00M
Free cash flow
$7.00M
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Sources
Revenue
$4.06B
Net income
$684.00M
Diluted EPS
5.04
Operating cash flow
$-1.49B
Free cash flow
$-1.69B
Fetching…
Sources
Is it cheap or expensive?
Fair value $487.31 vs current price $280.70
Wall Street consensus is the average analyst price target: $338.83 (-30.5% lower than our fair-value estimate).
Our most-likely fair value is $487.31 a share — about 73.6% above today's price of $280.70, so the stock currently looks cheap (undervalued).
Is it drowning in debt?
Healthy
Net cash $1.4B - more cash than debt. Interest coverage 7.2x.
Net debt
$-1.44B
Interest coverage
7.23x
Expedia Group, Inc.'s profit covers its interest bill about 7.2 times over. which is stronger than most peers shown here.
Healthy
Worse cushion
Baseline
Better cushion
EXPE
BASELINE
Expedia Group, Inc.
Total debt $5.69B Interest coverage 7.23x This is the baseline the peer rows are being compared against.
Total debt $20.92B Interest coverage 5.74x -21% vs EXPE Carries about 1.3x less debt cushion than EXPE.
Total debt $2.50B Interest coverage 30.65x +324% vs EXPE Carries about 4.2x more debt cushion than EXPE.
Total debt $4.03B Interest coverage 20.16x +179% vs EXPE Carries about 2.8x more debt cushion than EXPE.
Total debt $893.90M Interest coverage 1.95x -73% vs EXPE Carries about 3.7x less debt cushion than EXPE.
Total debt $1.44B Interest coverage 1.70x -77% vs EXPE Carries about 4.3x less debt cushion than EXPE.
What you should know
The case for and against EXPE
3 Rewards
1 Risk
Rewards
-
Revenue grew 6.6% last year.
-
Returns 89.5% on equity, ahead of 60% of its peers.
-
Free cash flow was positive in 9/10 years.
Risks
-
Insider ownership is only 0.6% (peer median: 1.3%).
The numbers
All the key metrics, grouped by purpose
Tap any ? icon to learn what it means.
Valuation
How expensive the stock looks
P/E (TTM)
17.65x
Forward P/E
11.47x
P/B
27.86x
P/S
2.15x
EV/EBITDA
11.61x
PEG ratio
0.74x
Profitability
How much profit each dollar creates
Gross margin
90.4%
Operating margin
19.0%
Net margin
13.0%
ROE
89.5%
ROA
6.1%
Health
Liquidity and balance-sheet strength
Debt / equity
2.30x
Current ratio
0.80x
Quick ratio
0.64x
Total debt
$5.69B
Total cash
$7.13B
Growth
How the business has been compounding
Revenue TTM
$15.70B
Revenue 5Y CAGR
14.4%
EPS TTM
15.90
EPS 5Y CAGR
65.3%
Cash flow
How much cash the business throws off
Operating CF TTM
$5.22B
Free CF TTM
$3.11B
FCF margin
19.8%
Dividend
Shareholder payout
Yield
0.7%
Payout ratio
11.1%
Last ex-div date
2026-08-27