* Note: Prices are in Million (M) USD.
Description:
TripAdvisor, Inc. is an online travel company. The company is headquartered in Needham, Massachusetts.
These criteria used Company's Cash, EBITDA and Debt balance to determines its fair value:
Cash : $1,154 M
Debt : $1,268 M
EBITDA : $191 M
Net Debt (Debt - Cash): $114 M
Since Net Debt is covered by EBITDA within 1 year, 3 points assigned.
This criteria used industry in which company operates:
Sector: Consumer cyclical
Industry: Leisure
Based on industry, 3 points assigned.
This criteria used Company's Price To Earning (P/E) Ratio to determines its fair value:
Forward PE Ratio: 11.51
Since Forward PE Ratio is less than 15, 5 points assigned.
This criteria used Company's ability to convert Sales into free cash flow to determine fair value:
Using last 17 overlapping fiscal years (max 20).Average Free Cash Flow: $186 M
Average Revenue: $1,121 M
Revenue Converted To Free Cash Flow (%): 16.6%
Since Free Cash Flow (FCF) to Revenue percentage is greater than 15, 3 points assigned.
This criteria used company's growth potential to calculate its fair value:
Latest Revenue (2024-12-31): $1,835 M
Revenue 4 Years Ago (2020-12-31): $604 M
Last 5 Years Average Revenue Growth: 41%
Since Revenue Growth is greater than 20, 5 points assigned.
This criteria used Company's ability to buy back its own share:
Latest Share Count (2024-12-31): $145 M
Share Count 5 Years Ago (2020-12-31): $135 M
Company is not buying back its own shares, 0 points assigned.
This criteria used Company's dividend payout ratio to determine its fair value:
Next Year Earnings Per Share (EPS): $1.62
Trailing 12-Month Earnings Per Share (EPS): $1.34
Average Earnings Per Share (EPS): $1.48
Dividend Per Share (DPS): $0
Payout Ratio: 0%
Dividend Yield: 0%
Since Dividend Per Share is less than or equal to 0, 0 point assigned.
Since Dividend Yield is less than 1, 0 point assigned.
This criteria used Company's Return On Equity (ROE%) to determine its fair value:
Using last 16 valid ROE years (max 20).Average ROE: 10.9%
Since Average ROE is between 10 - 20, 3 points assigned.
This criteria used Company's current price to its 52 week low price to determines its fair value:
Current Price: $17
52-Week Low: $10
Threshold Price (15% Above 52-Week Low): $12
Since Current price is not within 15% threshold, 0 point assigned.
This criteria used Company's Market Cap to determines its fair value:
Market Capitalization: $1,914 M
Since Market Cap is less than 10B, 1 point assigned.
% Exposure to Total Portfolio
Based on the market cap, we recommend do not exceed 2% exposure of Total Portfolio.
Value-Trade has assigned 23 points to above TripAdvisor Inc (TRIP) stock.
Heads up: One or more P/E inputs look exaggerated and may skew the blend.
• Growth Based PE
40.00 (>2× median)
Further research is recommended; please use your own due diligence.In such cases, multiplying earnings by the long-run average P/E typically gives a closer, more reliable fair value.
Rule of thumb: Last 11 Years Avg P/E (29.57)
× EPS ($1.48) = $43.76.
Last 11 Years Avg PE 29.57, Fair Value PE 15, Industry Based PE 15, Growth Based PE 40, RCFC Based PE 25.28, ROE Based PE 18.74, Risk-Free Anchored PE (25% MoS) 17.08. Based on these 7 values, average assigned is 22.95. Value-Trades has assined P/E value 22.95. Since an average (Current Year EPS + Next Year EPS) earning per share is $1.48.
The fair value of TripAdvisor Inc (TRIP) stock should be (22.95 x $1.48) = $33.97.
