One-glance verdict
Undervalued
$604.21 our estimate vs market $259.24
Wall Street consensus: $337.12 (-44.2% lower than our fair-value estimate)
57% below our estimate, below the bear case
Fundamentals snapshot
Expedia Group, Inc.
EXPE · NMS · Consumer Cyclical · Travel Services
Current price
$259.24
52-week range
$185.34 - $342.00
Market cap
$30.76B
Balance sheet
Watch
7.23x Adequate
Net debt $119.00M. 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 10.1% last year.
- Reward Returns 76.7% on equity, ahead of 75% of its peers.
- Reward Free cash flow was positive in 9/10 years.
- Risk Insider ownership is only 0.6% (peer median: 1.4%).
What this company does
Expedia Group, Inc.
Expedia Group makes money by connecting travelers with places to stay and things to do online, similar to how a travel agent does but through websites and apps. Their main income comes from commissions on bookings made through their various travel brands like Hotels.com and Vrbo, and also from providing travel technology to other businesses. This is important because their success reflects how many people are traveling and choosing to book through Expedia's platforms.
How the company got here
Expedia Group started in 1996 as a division of Microsoft, aiming to make travel booking easier through technology. It became a public company in 1999 and later was acquired by IAC. In 2005, Expedia spun off as an independent company. Over the years, it grew by acquiring other travel brands like Hotels.com, Orbitz, and Vrbo, and by expanding internationally. In 2018, it officially became Expedia Group, unifying its many brands under one umbrella to power the entire travel industry. The company has since focused on modernizing its technology and building a stronger foundation, especially after the challenges of the pandemic.
What it actually does
Expedia Group is a massive online travel company that acts as a middleman, connecting travelers with all sorts of travel services. Think of it as a giant digital marketplace where you can find and book flights, hotels, vacation rentals, rental cars, cruises, and even activities. They offer these services through a collection of well-known brands, making it convenient for people to plan and book their entire trips in one place. They also provide technology and services to other businesses in the travel industry.
B2C (Business-to-Consumer)
This is the part of Expedia Group that most people are familiar with. It includes all the consumer-facing travel brands like Expedia.com, Hotels.com, and Vrbo. These brands offer a wide range of travel products and services directly to travelers, such as booking hotel rooms, flights, and vacation homes. This segment is the largest part of Expedia's business, generating the majority of its revenue, primarily from lodging and vacation rentals.
B2B (Business-to-Business)
This segment focuses on providing travel technology and services to other companies. Instead of selling directly to travelers, Expedia Group works with airlines, travel agencies, banks, and other businesses. These partners use Expedia's technology and access its vast inventory of travel options to offer booking services to their own customers. This part of the business helps other companies enhance their offerings and reach more travelers.
trivago
Trivago is a travel search engine that Expedia Group has a majority stake in. It works like a comparison website for hotels, allowing travelers to search for and compare prices from various online travel companies and providers. Trivago then sends referrals to these companies, essentially helping travelers find the best deals on accommodations. While it operates somewhat independently, it's a significant part of Expedia Group's overall business.
What management is betting on now
Expedia Group's current strategy revolves around several key areas. They are focused on unifying their technology onto a single platform to create a more seamless experience for both travelers and partners. A major initiative is strengthening their loyalty program, called 'One Key,' to encourage repeat bookings and reduce reliance on paid advertising. They are also investing heavily in artificial intelligence (AI) to personalize travel offerings, improve internal operations, and make their platforms more intuitive and efficient. Expanding their business-to-business offerings and enhancing their consumer brands like Vrbo are also priorities.
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 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
FY2026 Q3
$-1.40B
Revenue
$4.94B
Net income
$1.03B
Diluted EPS
8.42
Operating cash flow
$-1.16B
Free cash flow
$-1.40B
Fetching…
Sources
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
Fetching…
Sources
Is it cheap or expensive?
Fair value $604.21 vs current price $259.24
Wall Street consensus is the average analyst price target: $337.12 (-44.2% lower than our fair-value estimate).
Our most-likely fair value is $604.21 a share — about 133.1% above today's price of $259.24, so the stock currently looks cheap (undervalued).
Is it drowning in debt?
Watch
Net debt $119.0M. Interest coverage 7.2x.
Net debt
$119.00M
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.
Watch
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 $21.32B Interest coverage 5.74x -21% vs EXPE Carries about 1.3x less debt cushion than EXPE.
Total debt $2.37B Interest coverage 30.65x +324% vs EXPE Carries about 4.2x more debt cushion than EXPE.
Total debt $4.05B Interest coverage 20.16x +179% vs EXPE Carries about 2.8x more debt cushion than EXPE.
Total debt $876.60M Interest coverage 1.95x -73% vs EXPE Carries about 3.7x less debt cushion than EXPE.
Total debt $1.47B 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 10.1% last year.
-
Returns 76.7% on equity, ahead of 75% of its peers.
-
Free cash flow was positive in 9/10 years.
Risks
-
Insider ownership is only 0.6% (peer median: 1.4%).
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)
15.20x
Forward P/E
10.47x
P/B
18.81x
P/S
1.90x
EV/EBITDA
10.75x
PEG ratio
0.72x
Profitability
How much profit each dollar creates
Gross margin
90.5%
Operating margin
27.8%
Net margin
13.0%
ROE
76.7%
ROA
7.2%
Health
Liquidity and balance-sheet strength
Debt / equity
1.95x
Current ratio
0.77x
Quick ratio
0.61x
Total debt
$5.69B
Total cash
$5.57B
Growth
How the business has been compounding
Revenue TTM
$16.23B
Revenue 5Y CAGR
14.4%
EPS TTM
17.06
EPS 5Y CAGR
65.3%
Cash flow
How much cash the business throws off
Operating CF TTM
$4.56B
Free CF TTM
$3.11B
FCF margin
19.2%
Dividend
Shareholder payout
Yield
0.7%
Payout ratio
10.8%
Last ex-div date
2026-08-27