One-glance verdict
Undervalued
$33.81 our estimate vs market $9.09
Wall Street consensus: $13.87 (-59.0% lower than our fair-value estimate)
73% below our estimate, below the bear case
Fundamentals snapshot
Tripadvisor, Inc.
TRIP · NMS · Consumer Cyclical · Travel Services
Current price
$9.09
52-week range
$8.41 - $20.16
Market cap
$1.06B
Balance sheet
Stretched
1.95x Concerning
Net debt $50.70M. Interest coverage shows how many times profit covers the interest bill.
What stands out
1 Reward
1 Risk
1 rewards · 1 risks
- Reward Free cash flow was positive in 9/10 years.
- Risk Return on equity was -0.2% last year — the company lost money on shareholders' equity.
What this company does
Tripadvisor, Inc.
Tripadvisor runs the popular travel review website and also owns TheFork, a restaurant reservation service. The company makes most of its money by acting as a digital travel agent, earning a fee when users book tours or hotels through its site, and by selling advertising to travel businesses. Its success depends on having a large number of online visitors, because more traffic leads to more potential bookings and higher advertising income.
How the company got here
Tripadvisor was started in 2000 by a founder who was frustrated while planning a family vacation and wanted a better way to get honest opinions. It began as a website for travelers to read and write reviews of hotels and destinations. The company was acquired by IAC/InterActiveCorp in 2004 and then became part of Expedia in 2005, before being spun off as its own publicly traded company in 2011. Over the years, it grew by acquiring other travel and restaurant websites, like Viator and TheFork, to expand beyond just reviews. This transformed it from a simple review site into a larger travel platform where people can also book hotels, tours, and restaurant reservations.
What it actually does
Tripadvisor is an online travel company that acts like a massive digital travel guide and booking service. Everyday people use its website and app to plan trips by reading millions of reviews and opinions on hotels, restaurants, tours, and attractions written by other travelers. Besides offering reviews, the company also allows you to compare prices for hotels and flights and book things directly, like tours, activities, and restaurant reservations. It's a two-sided platform: travelers get free information and booking tools, while travel businesses like hotels and tour operators pay Tripadvisor to reach this large audience of potential customers.
Experiences
This is Tripadvisor's largest and fastest-growing business, operated mainly through its brand Viator. It acts as a marketplace where travelers can discover and book tours, activities, and attractions, like a cooking class in Italy or a city bus tour. The company makes money by taking a commission (a percentage of the booking price) from the local tour operators for each booking made through its platform. This segment has become the company's main focus and now makes up the largest share of its revenue.
Hotels and Other
This is the original and most well-known part of Tripadvisor, centered around its flagship website with hotel reviews. It primarily makes money from advertising. When you search for a hotel and see prices from different booking sites, those sites pay Tripadvisor a fee, often on a cost-per-click (a small fee paid every time a user clicks on a link) basis. Hotels and other businesses also pay to place display ads or have special listings on the site to attract customers. While still a significant part of the business, its share of the company's total revenue has been declining as the Experiences segment grows.
TheFork
TheFork is an online restaurant reservation platform, mostly popular in Europe. It allows diners to discover restaurants and book tables directly through its app and website. TheFork makes money by charging restaurants a fee for each diner that books through its service and also by selling subscription-based software that helps restaurants manage their reservations and marketing. In mid-2026, Tripadvisor announced it had entered into an agreement to sell TheFork to American Express, indicating a strategic shift to focus more on its core Experiences and Hotels businesses.
What management is betting on now
Management is heavily focused on growing the Experiences segment, aiming for it to be the central part of the company's future. They are also investing in artificial intelligence (AI) to create a more personalized and seamless trip-planning experience for users. A key part of their strategy is to simplify the company by focusing on its most profitable areas, which includes selling off businesses like TheFork to better fund growth in the experiences marketplace. The goal is to transform Tripadvisor from just a review site into a comprehensive travel platform where users can plan and book their entire trip in one place.
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
$-63.00M
FY2024 Q4
$-26.00M
FY2025 Q1
$83.00M
FY2025 Q2
$177.00M
FY2025 Q3
$25.00M
FY2025 Q4
$-122.00M
FY2026 Q1
$101.30M
FY2026 Q2
$137.70M
Revenue
$441.90M
Net income
$22.40M
Diluted EPS
0.19
Operating cash flow
$143.70M
Free cash flow
$137.70M
Fetching…
Sources
Revenue
$382.40M
Net income
$-32.40M
Diluted EPS
-0.28
Operating cash flow
$117.80M
Free cash flow
$101.30M
Fetching…
Sources
Revenue
$411.00M
Net income
$-38.00M
Diluted EPS
-0.32
Operating cash flow
$-103.00M
Free cash flow
$-122.00M
Fetching…
Sources
Revenue
$553.00M
Net income
$53.00M
Diluted EPS
0.43
Operating cash flow
$44.00M
Free cash flow
$25.00M
Fetching…
Sources
Revenue
$529.00M
Net income
$36.00M
Diluted EPS
0.28
Operating cash flow
$202.00M
Free cash flow
$177.00M
Fetching…
Sources
Revenue
$398.00M
Net income
$-11.00M
Diluted EPS
-0.08
Operating cash flow
$102.00M
Free cash flow
$83.00M
Fetching…
Sources
Revenue
$411.00M
Net income
$1.00M
Diluted EPS
0.03
Operating cash flow
$-3.00M
Free cash flow
$-26.00M
Fetching…
Sources
Revenue
$532.00M
Net income
$39.00M
Diluted EPS
0.27
Operating cash flow
$-43.00M
Free cash flow
$-63.00M
Fetching…
Sources
Is it cheap or expensive?
Fair value $33.81 vs current price $9.09
Wall Street consensus is the average analyst price target: $13.87 (-59.0% lower than our fair-value estimate).
Our most-likely fair value is $33.81 a share — about 272.0% above today's price of $9.09, so the stock currently looks cheap (undervalued).
Is it drowning in debt?
Stretched
Net debt $50.7M. Interest coverage 1.9x.
Net debt
$50.70M
Interest coverage
1.95x
Tripadvisor, Inc.'s profit covers its interest bill about 1.9 times over. which is weaker than most peers shown here.
Stretched
Worse cushion
Baseline
Better cushion
TRIP
BASELINE
Tripadvisor, Inc.
Total debt $893.90M Interest coverage 1.95x This is the baseline the peer rows are being compared against.
Total debt $123.30M Interest coverage 13.37x +587% vs TRIP Carries about 6.9x more debt cushion than TRIP.
Total debt $5.69B Interest coverage 7.23x +272% vs TRIP Carries about 3.7x more debt cushion than TRIP.
Total debt $20.92B Interest coverage 5.74x +195% vs TRIP Carries about 2.9x more debt cushion than TRIP.
Total debt $4.68B Interest coverage 20.16x +936% vs TRIP Carries about 10.4x more debt cushion than TRIP.
Total debt $41.13M Interest coverage 37.32x +1,818% vs TRIP Carries about 19.2x more debt cushion than TRIP.
What you should know
The case for and against TRIP
1 Reward
1 Risk
Rewards
-
Free cash flow was positive in 9/10 years.
Risks
-
Return on equity was -0.2% last year — the company lost money on shareholders' equity.
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)
—
Forward P/E
8.46x
P/B
1.59x
P/S
0.58x
EV/EBITDA
10.15x
PEG ratio
0.47x
Profitability
How much profit each dollar creates
Gross margin
64.0%
Operating margin
9.4%
Net margin
0.3%
ROE
-0.2%
ROA
1.9%
Health
Liquidity and balance-sheet strength
Debt / equity
1.35x
Current ratio
1.56x
Quick ratio
1.20x
Total debt
$893.90M
Total cash
$843.20M
Growth
How the business has been compounding
Revenue TTM
$1.79B
Revenue 5Y CAGR
20.3%
EPS TTM
0.00
EPS 5Y CAGR
30.3%
Cash flow
How much cash the business throws off
Operating CF TTM
$202.50M
Free CF TTM
$163.00M
FCF margin
9.1%
Dividend
Shareholder payout
Yield
—
Payout ratio
0.0%
Last ex-div date
2019-11-19