MMarketMath

BKNG

Fast growerQuality: Medium (69/100)

Booking Holdings · Consumer Discretionary · Hotels, Resorts & Cruise Lines

$213.36

52w 150.14 – 230.98

20y monthly, adjusted

Mkt cap

$160.3B

P/E

29.7

P/FCF

17.6

FCF yield

5.7%

ROE

-96.9%

Shldr yield

4.8%

div 0.8% + bb 4.0%

What today's price assumes

At $160.3B, the market is pricing in 6.0% annual free-cash-flow growth for the next decade (10% discount rate, 2.5% terminal growth). Over the last ten years, FCF actually grew 11.6% per year — expectations look undemanding relative to history.

Simple DCF per-share range: $184 · $322 · $402 (4% / base / optimistic growth). An estimate, not a target.

Adjust the assumptions yourself →

Historical multiple lens

At its own median P/OCF of 0.8× across 18 years, BKNG would trade near $9/share (25th–75th percentile: $8–$10); it trades at 17.0× today.

Assumes the historical multiple regime persists — re-ratings can be permanent.

Growth record

Compound annual growth rates from as-filed 10-K data, split-adjusted

Rev 3y

+16.3%

Rev 5y

+31.7%

Rev 10y

+11.3%

EPS 5y

+158.3%

EPS 10y

+12.8%

FCF 5y

FCF 10y

+11.6%

Fundamentals

Fiscal 2008–2025, from SEC filings

Revenue

2008: $1.9B
2009: $2.3B
2010: $3.1B
2011: $4.4B
2012: $5.3B
2013: $6.8B
2014: $8.4B
2015: $9.2B
2016: $10.7B
2017: $12.7B
2018: $14.5B
2019: $15.1B
2020: $6.8B
2021: $11.0B
2022: $17.1B
2023: $21.4B
2024: $23.7B
2025: $26.9B
$0$10.0B$20.0B
08
11
14
17
20
23

Net income

2008: $182.2M
2009: $489.5M
2010: $527.5M
2011: $1.1B
2012: $1.4B
2013: $1.9B
2014: $2.4B
2015: $2.6B
2016: $2.1B
2017: $2.3B
2018: $4.0B
2019: $4.9B
2020: $59.0M
2021: $1.2B
2022: $3.1B
2023: $4.3B
2024: $5.9B
2025: $5.4B
$0$2.0B$4.0B
08
11
14
17
20
23

Free cash flow

2008: $297.2M
2009: $494.6M
2010: $754.7M
2011: $1.3B
2012: $1.7B
2013: $2.2B
2014: $2.8B
2015: $3.0B
2016: $3.8B
2017: $4.4B
2018: $4.9B
2019: $4.5B
2020: −$201.0M
2021: $2.5B
2022: $6.2B
2023: $7.0B
2024: $7.9B
2025: $9.1B
$0$2.5B$5.0B$7.5B
08
11
14
17
20
23

Diluted shares (lower is better)

2008: 48.7M
2009: 49.5M
2010: 51.0M
2011: 51.2M
2012: 51.3M
2013: 52.4M
2014: 53.0M
2015: 51.6M
2016: 50.1M
2017: 50.0M
2018: 48.0M
2019: 43.5M
2020: 41.2M
2021: 41.4M
2022: 40.1M
2023: 36.5M
2024: 34.1M
2025: 32.6M
020.0M40.0M
08
11
14
17
20
23

Margins

0%50%100%081114172023
Net marginFCF marginGross margin

Capital returned (dividends + buybacks)

2008: $4.4M
2009: $17.4M
2010: $129.4M
2011: $163.2M
2012: $257.0M
2013: $883.5M
2014: $750.4M
2015: $3.1B
2016: $1.0B
2017: $1.8B
2018: $6.0B
2019: $8.2B
2020: $1.3B
2021: $163.0M
2022: $6.6B
2023: $10.4B
2024: $7.7B
2025: $7.7B
$0$5.0B$10.0B
08
11
14
17
20
23

Cash vs long-term debt

$0$5.0B$10.0B$15.0B081114172023
CashLT debt

Quarterly

Discrete quarters from 10-Q filings; Q4 derived as fiscal year minus Q1–Q3. OCF is unwound from the year-to-date figures 10-Qs report. Compare to the same quarter a year ago — most businesses are seasonal.

Revenue by quarter

Q2'23: $5.5B
Q3'23: $7.3B
Q4'23: $4.8B
Q1'24: $4.4B
Q2'24: $5.9B
Q3'24: $8.0B
Q4'24: $5.5B
Q1'25: $4.8B
Q2'25: $6.8B
Q3'25: $9.0B
Q4'25: $6.3B
Q1'26: $5.5B
Q2'26: $7.4B
$0$2.5B$5.0B$7.5B
23
24
24
25
26

Net income by quarter

Q2'23: $1.3B
Q3'23: $2.5B
Q4'23: $222.0M
Q1'24: $776.0M
Q2'24: $1.5B
Q3'24: $2.5B
Q4'24: $1.1B
Q1'25: $333.0M
Q2'25: $895.0M
Q3'25: $2.7B
Q4'25: $1.4B
Q1'26: $1.1B
Q2'26: $1.9B
$0$1.0B$2.0B
23
24
24
25
26
QuarterRevenueYoYNet incomeYoYEPSOCF
Q2'26$7.4B+8.1%$1.9B+117.9%2.53$3.7B
Q1'26$5.5B+16.2%$1.1B+225.2%1.36$3.2B
Q4'25 *$6.3B+16.0%$1.4B+33.7%79.66$1.5B
Q3'25$9.0B+12.7%$2.7B+9.2%84.41$1.4B
Q2'25$6.8B+16.0%$895.0M−41.2%1.10$3.2B
Q1'25$4.8B+7.9%$333.0M−57.1%0.40$3.3B
Q4'24 *$5.5B+14.4%$1.1B+381.1%31.60$721.0M
Q3'24$8.0B+8.9%$2.5B+0.2%74.34$2.4B
Q2'24$5.9B+7.3%$1.5B+17.9%44.38$2.5B
Q1'24$4.4B+16.9%$776.0M+191.7%22.37$2.7B
Q4'23 *$4.8B+18.2%$222.0M−82.0%5.71$1.3B
Q3'23$7.3B+21.3%$2.5B+50.7%69.80$1.4B
Q2'23$5.5B+27.2%$1.3B+50.5%34.89$1.7B

Track record

Compound annual growth by period. For debt and share count, negative is the good direction.

Series3y5y10y15y
Revenue+16.3%+31.7%+11.3%+15.5%
Operating cash flow+12.8%+156.3%+11.4%+18.1%
Free cash flow+13.7%+12.4%+11.6%+18.0%
EPS (diluted)+29.4%+158.3%+12.8%+20.3%
Equity−22.3%−24.4%−3.3%
LT debt+12.0%+8.9%+10.6%
Diluted shares−6.6%−4.5%−4.5%−2.9%
Stock price+20.6%+18.8%+14.4%+16.7%

$100, 3 years ago

$175vs $176 in SPY

20.6% vs 20.7%/yr

$100, 5 years ago

$237vs $181 in SPY

18.8% vs 12.6%/yr

$100, 10 years ago

$384vs $412 in SPY

14.4% vs 15.2%/yr

$100, 15 years ago

$1,014vs $813 in SPY

16.7% vs 15.0%/yr

The $1 test — market value created per $1 of earnings retained (Buffett's hurdle: at least $1)

Last 5 years

$0.19

$3.4B created / $17.4B retained

Last 10 years

$0.14

$4.3B created / $30.8B retained

Quality & capital discipline

Cash-based returns and how management deploys capital

Cash ROIC

83.4%

OCF ÷ (equity + debt)

OCF / EV yield

5.9%

MC vs 10× OCF

1.70

≤1 = priced under 10× OCF

Debt / FCF

1.9y

SBC / FCF

6.7%

Owner earnings

$8.5B

OCF − capex − SBC

OE yield

5.3%

Share count 5y

−2.3%

per year; negative = buybacks

Capital intensity

3.0%

net PP&E ÷ revenue

Sales efficiency

$0.00

new PP&E per $1 new revenue, 5y

Checklist

21 of 25 checks pass · 84%. Checks with structurally missing inputs are excluded.

Growth & Consistency

6/6

  • Revenue growth

    31.7% · 5y CAGR ≥ 5%

    pass
  • EPS growth

    158.3% · 5y CAGR ≥ 5%

    pass
  • FCF growth

    · 5y CAGR ≥ 5%

    na
  • Revenue rises consistently

    8 of 9 · up in ≥ 7 of last 10 years

    pass
  • FCF consistently positive

    9 of 10 · positive in ≥ 8 of last 10 years

    pass
  • Profitable every year

    10 of 10 · net income > 0 in ≥ 8 of last 10

    pass
  • Cash flow keeps up with sales

    156.3% vs 31.7% · OCF CAGR ≥ 0.9× revenue CAGR

    pass

Profitability

5/6

  • Net margin

    20.1% · ≥ 8%

    pass
  • Operating margin

    32.8% · ≥ 10%

    pass
  • Gross margin stable or rising

    · no drop > 2 pts over 3y

    na
  • Return on equity

    -96.9% · ≥ 12%

    fail
  • Cash ROIC

    83.4% · ≥ 12%

    pass
  • FCF margin

    33.8% · ≥ 5%

    pass
  • Earnings back their cash

    OCF $9.4B vs NI $5.4B · OCF ≥ net income (latest FY)

    pass

Balance Sheet

3/5

  • Debt payable from cash flow

    1.9y · LT debt ≤ 3× FCF

    pass
  • Cash cushion

    102% · cash ≥ 50% of LT debt

    pass
  • Leverage

    -3.02 · LT debt ≤ 1.5× equity

    pass
  • Equity positive and compounding

    −$5.6B · equity > 0 and grew over ~5y

    fail
  • Interest burden

    18% · interest ≤ 15% of operating income

    fail

Capital Allocation

4/4

  • Share count flat or shrinking

    -2.3% · ≤ +0.5%/yr over ~5y

    pass
  • Stock comp restrained

    7% · SBC ≤ 15% of FCF

    pass
  • Distributions funded by FCF

    85% · dividends + buybacks ≤ 100% of FCF

    pass
  • Repurchases are a habit

    10 of 10 · buybacks in ≥ 5 of last 10 years

    pass

Valuation Discipline

3/4

  • FCF yield

    5.7% · ≥ 3%

    pass
  • Earnings multiple

    29.7 · P/E ≤ 25

    fail
  • Price asks less than history delivered

    6.0% vs 11.6% · implied FCF growth ≤ historical FCF CAGR

    pass
  • Shareholder yield

    4.8% · dividends + buybacks ≥ 2% of market cap

    pass

Financial data

As filed in 10-Ks; per-share figures split-adjusted. $ in millions.

FYRevenueGross profitOp incomeNet incomeEPSOCFCapExFCFDividendsBuybacksSBCCashLT debtEquityShares
202526,9178,8255,404165.579,4093229,0871,2486,44061317,20316,856-5,57833
202423,7397,5555,882172.698,3234297,8941,1746,50959916,16414,853-4,02034
202321,3655,8354,289117.407,3443456,999010,37753012,10712,223-2,74437
202217,0905,1023,05876.356,5543686,18606,62140412,22111,9852,78240
202110,9582,4961,16528.172,8203042,51616337011,1278,9376,17841
20206,796-631591.4485286-2011,30323310,56211,0294,89341
201915,0665,3454,865111.824,8653684,4978,1873086,3127,6405,93344
201814,5275,3413,99883.265,3384424,8965,9713172,6248,6498,78548
201712,68112,4394,5382,34146.864,6622884,3741,8282612,5428,81011,26150
201610,74310,3282,9062,13542.653,9842203,7641,0122502,0816,1719,82050
20159,2248,5923,2592,55149.453,2041743,0303,0892471,4776,1588,79552
20148,4427,5843,0732,42245.672,9141322,7837501863,1493,8248,56753
20136,7935,7162,4121,89336.112,301842,2178841411,2901,7426,91052
20125,2614,0841,8301,42427.661,786551,731257721,5363,89751
20114,3563,0801,3991,05920.631,342471,295163666332,57451
20103,0851,90978752810.3577723755129683591,81351
20092,3381,2614714899.885101549517412021,32250
20081,8859562891823.743161829744136569949

Some concepts are structurally absent for certain industries (banks report no gross profit or capex). Missing ≠ zero.