Is Booking Holdings Inc. (BKNG) Fairly Valued?
Booking Holdings Inc. valuation review using P/E, fair value, revenue growth, EPS growth, net margin, and TGMCharts chart exhibits as of July 27, 2026.
By TGMCharts Research · Data as of · Updated
Booking Holdings Inc. does not get a one-metric verdict. The stock trades at 24.63x trailing earnings and the analyst DCF (FMP) reference is $256, so the valuation read depends on whether growth and margins support that price.
The core evidence is the relationship between price, earnings, fair value, and business support. Five-year revenue CAGR is 37.43%, five-year EPS CAGR is 158.62%, and net margin is 22.23%. Those facts decide whether the multiple is defensible or stretched.
- Booking Holdings Inc. closed at $199 on July 27, 2026.
- Trailing P/E is 24.63x and price-to-sales is 5.36x.
- Analyst DCF (FMP) is $256 with margin of safety at 37.21%.
- Five-year revenue CAGR is 37.43% and five-year EPS CAGR is 158.62%.
- Earnings yield is 4.06% and net margin is 22.23%.
Valuation Setup
The market price, model anchor, growth support, and profitability facts behind the valuation read.
Evaluating Price Against Underlying Business Fundamentals
Assessing the current valuation of Booking Holdings Inc. requires examining the relationship between market price, growth metrics, and underlying profit margins. The equity closed at $199 on July 27, 2026, carrying a trailing earnings multiple of 24.63x. At the same time, the independent analyst-DCF (FMP) model establishes a reference value of $256, indicating a margin of safety of 37.21%.
Rather than relying on a single financial ratio, this analysis evaluates multiple operational data points alongside market pricing. We examine whether the current valuation is backed by actual business expansion or if it reflects elevated investor expectations that could expose holders to downside if performance falters.
Current Market Multiples and Owner Yield Metrics
To understand what investors are paying for each unit of performance, we compare the sales multiple with the cash generation yield. The stock trades at a price-to-sales ratio of 5.36x, which corresponds to an earnings yield of 4.06%. This relationship is illustrated in the accompanying historical charts, showing how pricing has evolved relative to top-line and bottom-line achievements.
BKNG P/E ratio Chart
The trailing earnings multiple is the main valuation exhibit because it connects the market price to reported earnings.
Latest P/E ratio: 24.63x as of July 27, 2026.
A P/E ratio of 24.63x has to be judged against the company's five-year EPS CAGR of 158.62%. If the multiple is high while EPS support is ordinary, the valuation thesis becomes more dependent on investor confidence than on fresh earnings power.
BKNG price-to-sales Chart
Price-to-sales gives a second valuation lens when margins and earnings can move around the cycle.
Latest price-to-sales ratio: 5.36x.
Price-to-sales at 5.36x is most useful beside net margin of 22.23%. A richer sales multiple is easier to defend when margin quality is durable rather than temporarily elevated.
Analyst DCF Benchmark and Estimated Margin of Safety
The third-party analyst DCF (FMP) calculation serves as a useful reference point, indicating a fair value of $256. This places the market price below the estimated intrinsic value, yielding a positive margin of safety of 37.21%. This external calculation should be weighed alongside our interactive modeling tools, which allow for customized growth and discount rate assumptions.
The valuation at a glance
Each input on its own line: what the stock costs against earnings and sales, the model's fair value and how far price sits from it, and the growth and margins behind the business.
BKNG earnings yield Chart
Earnings yield reframes valuation from an owner's-yield perspective rather than a multiple perspective.
Latest earnings yield: 4.06%.
The earnings yield of 4.06% is the counterweight to the P/E ratio. If the yield is thin relative to the quality and growth profile, the valuation case needs more help from future compounding.
Historical Revenue and Earnings Growth Trends
Long-term expansion trends help determine whether the current earnings multiple rests on a solid foundation. Over the past five years, the annualized revenue growth rate reached 37.43%, while the annualized diluted earnings per share growth rate registered at 158.62%. These metrics demonstrate a strong historical trajectory, though recent trailing twelve-month figures show positive revenue expansion alongside a contraction in per-share earnings.
BKNG revenue
Revenue history tests whether the valuation is being supported by real business expansion.
Five-year revenue CAGR: 37.43%. This is endpoint-to-endpoint from the fiscal years shown — a depressed start year can inflate it, so read it against the recent bars.
Revenue growth is the business-expansion evidence behind the valuation read. A five-year revenue CAGR of 37.43% helps show how much of the valuation story is coming from company growth instead of only multiple expansion.
BKNG EPS
EPS history checks whether reported earnings are keeping pace with the market multiple.
Five-year EPS CAGR: 158.62%. This is endpoint-to-endpoint from the fiscal years shown — a depressed or negative start year can inflate it, so read it against the recent bars.
A five-year EPS CAGR of 158.62% is the clearest support figure for a P/E-based conclusion. If EPS growth slows while the multiple remains elevated, the article should become more cautious after refresh.
Profitability Margins and Sales Multiple Alignment
Operating efficiency determines how effectively top-line sales convert into net income. The company reports a net profit margin of 22.23% alongside its price-to-sales ratio of 5.36x. High profit margins generally make premium sales multiples more defensible, but any future margin compression would rapidly increase the effective earnings multiple.
BKNG net margin
Net margin shows whether the company has enough profitability quality to support its valuation.
Net margin (TTM): 22.23%. The bars below are annual fiscal years.
Net margin of 22.23% is a quality signal, not a valuation verdict by itself. It matters because a premium multiple is more defensible when margins are structurally strong and less defensible when margins are peaking.
Key Arguments for and Against the Current Valuation
The supportive case for the current valuation relies on the company's historical compounding, highlighted by a five-year revenue CAGR of 37.43% and a net profit margin of 22.23%. Conversely, the cautious view points out that the trailing P/E of 24.63x leaves little room for operational missteps, particularly given that trailing twelve-month earnings per share have recently trended downward.
Bull and bear case
Valuation support
- Five-year revenue CAGR of 37.43% and five-year EPS CAGR of 158.62% support the business case.
- Net margin of 22.23% is the quality check behind the multiple.
Valuation pressure
- A P/E ratio of 24.63x can become demanding if EPS growth slows.
- The analyst-DCF (FMP) margin of safety at 37.21% should change the valuation read if it deteriorates after refresh.
Key Indicators That Would Alter This Analytical Stance
This valuation assessment would require revision if the third-party DCF model adjustments shift the estimated fair value of $256, or if the market price closes the gap with this target. Additionally, any structural shift in profit margins or a further divergence between revenue growth and net income trends would invalidate the current baseline assumptions.
Synthesis of Fundamental Evidence and Valuation Context
In conclusion, assessing the valuation of Booking Holdings Inc. requires balancing its strong historical growth against its current market multiples and recent earnings pressure. Sustainable returns depend on maintaining high profit margins and stabilizing per-share earnings. The figures presented here are based on historical filings as of July 27, 2026 and are intended for general research purposes rather than personalized financial advice.
FAQ
Is BKNG fairly valued?
Booking Holdings Inc. trades at 24.63x trailing earnings, while the price gap versus the third-party DCF (FMP) estimate is 37.21%. Read those references alongside five-year revenue CAGR of 37.43% and five-year EPS CAGR of 158.62%; none is a standalone verdict.
What valuation metric matters most for BKNG?
This article anchors on P/E, fair value, margin of safety, price-to-sales, earnings yield, revenue growth, and EPS growth. No single metric is treated as a recommendation.
How often should this BKNG valuation view refresh?
We refresh this note after each daily market close, so the price, fair value, and every figure stay current. Numbers here are as of July 27, 2026.
What would change our mind
- A material move away from the analyst-DCF (FMP) reference of $256.
- A break in five-year EPS support, currently 158.62%.
- Margin quality drifting away from the latest net margin of 22.23%.
The bottom line
Booking Holdings Inc. valuation research note from TGMCharts Research, grounded in a dated fundamentals snapshot, chart exhibits, and linked source facts.
Read next: BKNG fundamentalsContinue with Booking Holdings Inc.'s full stock page.How we checked this researchShowHide
Data snapshot · By TGMCharts Research.
Every number in this note comes from data we compute and store ourselves from the company's reported figures, plus verbatim excerpts from its SEC filings. When a value isn't available we say so — we never fill gaps with estimates.
Latest filing excerpt
10-Q · filed 2026-04-28 · period 2026-03-31 · SEC EDGAR source
- “Trends Our global room nights in 2025 increased 8% year-over-year driven primarily by healthy travel demand in Europe and Asia.”
- “Global room nights increased 6% year-over-year in the first quarter of 2026 and increased by 1% in March.”
- “Our total revenues increased by approximately 16% in the first quarter of 2026 as compared to the first quarter of 2025, including a benefit of about 6% from changes in foreign currency exchange rates.”
- “Flight gross bookings increased 25% year-over-year for the three months ended March 31, 2026 due to airline tickets growth, partially offset by lower average airline ticket prices.”
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Every number, checked
Every numeric or dated claim in this note was checked against our stored company data before publishing — each figure below links to the page it comes from.