One-glance verdict
Overvalued
$3.82 our estimate vs market $9.47
Wall Street consensus: $9.75 (155.5% higher than our fair-value estimate)
148% above our estimate, beyond the bull case
Fundamentals snapshot
Global Business Travel Group, Inc.
GBTG · NYQ · Consumer Cyclical · Travel Services
Current price
$9.47
52-week range
$4.96 - $9.56
Market cap
$4.95B
Balance sheet
Stretched
1.92x Concerning
Net debt $1.11B. Interest coverage shows how many times profit covers the interest bill.
What stands out
3 Rewards
2 Risks
3 rewards · 2 risks
- Reward Revenue grew 16.9% last year.
- Reward Returns 6.3% on equity, ahead of 33% of its peers.
- Risk Stock trades 70.2% above its 5-year average P/E.
- Risk Net debt grew 7.5% over 3 years.
What this company does
Global Business Travel Group, Inc.
Global Business Travel Group provides online tools and services that act like a specialized travel agency for big companies, helping them book and manage all their employee travel. The company earns money by charging fees on these bookings, meaning its financial health often reflects how much businesses are spending on travel around the world.
How the company got here
Global Business Travel Group (GBTG) started as the corporate travel division of American Express. In 2014, American Express sold a 50% stake to an investor group, creating a separate, joint-venture company focused specifically on business travel. This new entity, Amex GBT, has since grown significantly by acquiring several other travel management companies, including Hogg Robinson Group, Ovation, and in a major move, Egencia from Expedia Group in 2021. The company became publicly traded on the New York Stock Exchange in 2022, solidifying its position as a standalone leader in the corporate travel industry.
What it actually does
Think of GBTG as a one-stop shop for companies to manage all aspects of their employees' business travel. It provides software and services that help businesses book flights and hotels, manage travel expenses, and organize meetings and events. Instead of employees booking trips on their own, they use GBTG's platforms, which ensures that the travel complies with company policies on spending and safety. The company serves businesses of all sizes, from small companies to large global corporations, as well as government agencies.
Travel Services
This is the core of GBTG's business, where it helps companies manage their employees' travel from start to finish. Businesses pay GBTG fees to access its booking platforms, which offer a wide selection of flights, hotels, and ground transportation. These platforms are more than just booking websites; they help enforce company travel policies, track spending, and provide support to travelers if their plans are disrupted. This segment generates the majority of the company's revenue (the money it brings in from sales) through transaction fees and subscriptions.
Meetings & Events
Beyond individual business trips, GBTG also organizes corporate meetings and events. Companies hire GBTG to handle the logistics for everything from a small team meeting to a large international conference. This includes services like finding and booking venues, managing budgets, and coordinating all the details for the event. This is a significant service that complements its main travel business by helping companies manage all their travel-related needs in one place.
Consulting and Data Analytics
GBTG offers expert advice to help companies make their travel programs more efficient and cost-effective. Through its consulting services, GBTG analyzes a company's travel spending and patterns to identify opportunities for savings and to improve the travel experience for employees. It also provides data and insights that help businesses track their travel expenses, ensure employees are following company travel policies, and monitor their carbon footprint from travel. This part of the business is about providing expertise and information to help clients make smarter decisions about their travel.
What management is betting on now
GBTG is heavily focused on using technology, especially artificial intelligence (AI), to make booking and managing travel even easier for its clients. The company is also dedicated to expanding its services for small and medium-sized businesses, a growing market for corporate travel. A key part of their strategy is to continue integrating the companies they have acquired, like Egencia and CWT, to operate more efficiently and offer a wider range of services. Management believes that by providing a single, integrated platform for all travel and expense needs, they can become an indispensable partner to their clients.
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
$59.00M
FY2024 Q4
$33.00M
FY2025 Q1
$26.00M
FY2025 Q2
$27.00M
FY2025 Q3
$38.00M
FY2025 Q4
$13.00M
FY2026 Q1
$-52.00M
FY2026 Q2
$103.00M
Revenue
$870.00M
Net income
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Diluted EPS
0.03
Operating cash flow
$142.00M
Free cash flow
$103.00M
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Sources
Revenue
$840.00M
Net income
—
Diluted EPS
0.10
Operating cash flow
$-15.00M
Free cash flow
$-52.00M
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Sources
Revenue
$792.00M
Net income
—
Diluted EPS
0.16
Operating cash flow
$52.00M
Free cash flow
$13.00M
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Sources
Revenue
$674.00M
Net income
—
Diluted EPS
-0.13
Operating cash flow
$71.00M
Free cash flow
$38.00M
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Sources
Revenue
$631.00M
Net income
—
Diluted EPS
0.03
Operating cash flow
$57.00M
Free cash flow
$27.00M
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Sources
Revenue
$621.00M
Net income
—
Diluted EPS
0.16
Operating cash flow
$53.00M
Free cash flow
$26.00M
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Sources
Revenue
$591.00M
Net income
—
Diluted EPS
-0.04
Operating cash flow
$65.00M
Free cash flow
$33.00M
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Sources
Revenue
$597.00M
Net income
—
Diluted EPS
-0.28
Operating cash flow
$85.00M
Free cash flow
$59.00M
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Sources
Is it cheap or expensive?
Fair value $3.82 vs current price $9.47
Wall Street consensus is the average analyst price target: $9.75 (155.5% higher than our fair-value estimate).
Our most-likely fair value is $3.82 a share — about 59.7% below today's price of $9.47, so the stock currently looks expensive (overvalued).
Is it drowning in debt?
Stretched
Net debt $1.1B. Interest coverage 1.9x.
Net debt
$1.11B
Interest coverage
1.92x
Global Business Travel Group, Inc.'s profit covers its interest bill about 1.9 times over. which is stronger than most peers shown here and 2 peers sit below 1x, which is the danger zone where profit does not fully cover the interest bill.
Stretched
Worse cushion
Baseline
Better cushion
GBTG
BASELINE
Global Business Travel Group, Inc.
Total debt $1.63B Interest coverage 1.92x This is the baseline the peer rows are being compared against.
Total debt $23.88M Interest coverage 0.49x -75% vs GBTG Carries about 3.9x less debt cushion than GBTG.
Total debt $878.96M Interest coverage 3.17x +65% vs GBTG Carries about 1.7x more debt cushion than GBTG.
Total debt $5.87B Interest coverage 2.51x +31% vs GBTG Carries about 1.3x more debt cushion than GBTG.
Total debt $4.32B Interest coverage 0.66x -66% vs GBTG Carries about 2.9x less debt cushion than GBTG.
What you should know
The case for and against GBTG
3 Rewards
2 Risks
Rewards
-
Revenue grew 16.9% last year.
-
Returns 6.3% on equity, ahead of 33% of its peers.
-
Free cash flow was positive in 3/10 years.
Risks
-
Stock trades 70.2% above its 5-year average P/E.
-
Net debt grew 7.5% over 3 years.
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)
59.19x
Forward P/E
20.02x
P/B
3.02x
P/S
1.56x
EV/EBITDA
15.83x
PEG ratio
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Profitability
How much profit each dollar creates
Gross margin
58.5%
Operating margin
11.4%
Net margin
2.8%
ROE
6.3%
ROA
3.7%
Health
Liquidity and balance-sheet strength
Debt / equity
0.96x
Current ratio
1.20x
Quick ratio
1.04x
Total debt
$1.63B
Total cash
$518.00M
Growth
How the business has been compounding
Revenue TTM
$3.18B
Revenue 5Y CAGR
37.4%
EPS TTM
0.16
EPS 5Y CAGR
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Cash flow
How much cash the business throws off
Operating CF TTM
$250.00M
Free CF TTM
$104.00M
FCF margin
3.3%
Dividend
Shareholder payout
Yield
—
Payout ratio
0.0%
Last ex-div date
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