Booking Holdings Inc. (BKNG)

FairStock Score: 84/100 — HIGH CONVICTION

Key Financials

AI Analysis

AI-generated, general educational analysis — not personal investment advice.

I look for businesses that earn high returns on capital and turn revenue into cash, and Booking Holdings appears to fit that mold. Its online travel platforms, led by Booking.com and Priceline, benefit from scale: more properties attract more travelers, and more travelers attract more properties. The numbers support quality. FairStock calculates return on capital employed of 20.38%, a Piotroski F-score of 7/9, and an Altman Z-score of 4.39, suggesting financial strength. Free cash flow over the trailing twelve months was $9.5B, an 8.1% FCF yield on the $118.3B market cap. Revenue has grown from $21.4B in FY2023 to $23.7B in FY2024 and $26.9B in FY2025 per filed 10-Ks, while fiscal Q2 2026 revenue of $7.4B was up from $6.8B in fiscal Q2 2025. The latest quarter's margin was 26.52%, which is admirable in a cyclical industry. Valuation looks modest: at the 2026-10-13 close of $157.51, FairStock's P/E is 17.46, EV/EBITDA is 10.97, and PEG is 0.15. The stock sits near the low end of its $150.14-$220.81 52-week range, so expectations may be subdued. Mr. Market may be worried about travel demand, competition, and the incomplete or inconsistent filed EPS data - FY2025 diluted EPS was $165.57 versus $172.69 in FY2024 and $117.40 in FY2023, while net income is often not reported in the supplied filings. I would want to see cash flow persist and revenue keep compounding before calling the price an obvious bargain.

In plain English: Booking Holdings runs online travel reservation sites such as Booking.com and Priceline. The business looks strong: it produces lots of cash, earns good returns on the money it invests, and revenue is growing. The stock price looks cheap compared with those profits and cash flows, but travel demand can change with the economy and the filed earnings numbers are uneven.

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Data as of 2026-10-13 close · note generated 2026-10-15 · model deepseek-flash

Sources (SEC EDGAR): fiscal Q2 2026 10-Q (period ended 2026-06-30) · fiscal Q1 2026 10-Q (period ended 2026-03-31) · fiscal Q3 2025 10-Q (period ended 2025-09-30) · fiscal Q2 2025 10-Q (period ended 2025-06-30) · FY2025 10-K (period ended 2025-12-31) · FY2024 10-K (period ended 2024-12-31) · FY2023 10-K (period ended 2023-12-31)

Fundamentals from company filings and market-data providers; prices are end-of-day, not real-time. AI-generated analysis is general and educational — not personal investment advice. Scoring methodology · Score test · Disclaimer