One-glance verdict
Undervalued
$40.43 our estimate vs market $8.94
Wall Street consensus: $13.21 (-67.3% lower than our fair-value estimate)
78% below our estimate, below the bear case
Fundamentals snapshot
Tripadvisor, Inc.
TRIP · NMS · Consumer Cyclical · Travel Services
Current price
$8.94
52-week range
$8.02 - $17.53
Market cap
$1.04B
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 is like an online travel guide that helps people plan trips by offering reviews and booking options for hotels, restaurants, and activities. Most of their money comes from advertising, where hotels and restaurants pay to be more visible on their site. This matters because it shows how well Tripadvisor can attract travelers looking for places to stay and eat, which helps them make money.
How the company got here
Tripadvisor was founded in 2000 by Stephen Kaufer and Langley Steinert, who were inspired to create a platform where travelers could find and share honest reviews and opinions about destinations, accommodations, and restaurants. [2, 8] The company quickly grew, and by 2004, it was acquired by IAC/InterActiveCorp. [3, 5] In 2005, IAC spun off its travel brands, including Tripadvisor, into Expedia, Inc. [3, 5] Tripadvisor then became an independent public company in 2011 after being spun off from Expedia. [2, 5] Over the years, Tripadvisor has expanded its offerings through strategic acquisitions, including Viator (for tours and activities) and TheFork (for restaurant reservations), aiming to become a more comprehensive travel planning and booking ecosystem. [1, 2, 3]
What it actually does
Tripadvisor operates as a global online travel company that helps people plan and book their trips. [7] It provides a platform where travelers can find a vast amount of user-generated content, such as reviews, ratings, and opinions, about hotels, restaurants, attractions, and experiences worldwide. [2, 7] The company also offers tools for comparing prices, planning itineraries, and directly booking various travel services. [4, 8] Essentially, Tripadvisor acts as a one-stop shop for travelers, from the initial research phase to making reservations.
Brand Tripadvisor
This is the core of Tripadvisor's business and is what most people recognize. It's a website and app filled with reviews, ratings, and opinions from travelers about hotels, restaurants, and things to do in destinations all over the world. [1, 2] Think of it as a massive digital travel guide created by millions of people. Businesses like hotels and restaurants pay Tripadvisor for advertising and to have their listings appear more prominently, helping them attract customers who are actively searching for travel options. [1, 4] This segment is crucial because it builds trust and attracts a large audience of travelers.
Viator
Viator is Tripadvisor's marketplace for tours, activities, and attractions. [1, 7] If you're looking for a guided city tour, a cooking class, or tickets to a popular attraction, Viator is where you'd go to find and book them. [1, 8] Travelers pay Viator to book these experiences, and Tripadvisor takes a commission on these bookings. [4, 8] This part of the business is growing and is a key focus for Tripadvisor as it moves towards more transaction-based revenue.
TheFork
TheFork is an online platform primarily focused on restaurant reservations, mainly operating in Europe and Australia. [1, 7] It allows diners to discover restaurants, read reviews, and make online reservations. [1, 8] Restaurants pay TheFork for tools that help them manage reservations and attract customers. [1, 4] While it's a significant part of Tripadvisor's portfolio, the company is exploring strategic options for this business, as it has fewer synergies with their focus on experiences. [9]
What management is betting on now
Tripadvisor's current strategy is to focus heavily on its "Experiences" business, which includes tours and activities booked through Viator and the core Tripadvisor platform. [9, 14] Management sees this as a major growth area and aims to become the global leader in this segment. [9] They are also looking to leverage technology, including artificial intelligence (AI), to personalize travel planning and improve the user experience. [10] While simplifying some of its older offerings, Tripadvisor is also evaluating strategic options for other parts of its business, like TheFork, to potentially unlock more value for shareholders and reinvest in growth areas. [9]
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 $40.43 vs current price $8.94
Wall Street consensus is the average analyst price target: $13.21 (-67.3% lower than our fair-value estimate).
Our most-likely fair value is $40.43 a share — about 352.2% above today's price of $8.94, 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 $4.05B Interest coverage 20.16x +936% vs TRIP Carries about 10.4x more debt cushion than TRIP.
Total debt $39.57M 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)
89.40x
Forward P/E
8.36x
P/B
1.57x
P/S
0.57x
EV/EBITDA
10.04x
PEG ratio
1.21x
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
0.10
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
0.0%
Payout ratio
0.0%
Last ex-div date
2019-11-19