Expedia Group, Inc. (EXPE)

FairStock Score: 55/100 — STEADY

Key Financials

AI Analysis

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

At $283.97 at the 2026-10-26 close, Expedia is a good business asking a mixed price. The franchise is real: it runs Expedia, Hotels.com, Vrbo, Orbitz, Travelocity and trivago, with a B2B arm and 16,000 employees. That brand portfolio is the closest thing to a moat, though online travel remains competitive and cyclical. The recent numbers are strong: in fiscal Q2 2026, the quarter ended 2026-06-30, revenue was $4.3B, net income $878.0M and diluted EPS $7.16, versus $3.8B, $330.0M and $2.48 in fiscal Q2 2025. Fiscal 2025 produced $14.7B of revenue, $1.3B of net income and $9.81 of diluted EPS, up from $13.7B, $1.2B and $8.95 in fiscal 2024. But fiscal Q1 2026 showed a $6.0M net loss, so results are seasonal and lumpy. The balance sheet demands respect: FairStock's D/E is 2.30 and Altman Z-score is 0.99; ROCE is only 6.11%, while the 89.49% ROE is flattered by a thin equity base. On the plus side, Piotroski is 8/9, TTM free cash flow is $4.5B and FCF yield is 12.8%. FairStock's P/E is 17.86 and PEG 0.19, which looks reasonable for the computed FAST GROWER classification—profit growth 222.2% a year over four years, revenue 14.4%. Yet the Graham Number is $60.05 versus a $283.97 price, a -381.28% margin of safety. I see quality and cash, but not a Graham-style bargain; the price already reflects much of the growth.

In plain English: Expedia runs online travel booking brands such as Expedia, Hotels.com and Vrbo, plus a business-to-business travel arm. The business looks strong in recent profit and cash generation, but it carries a lot of debt and quarterly results can swing sharply. At the recent price, the shares look moderate on earnings and attractive on cash generation, but expensive by a very conservative measure of business value.

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Data as of 2026-10-26 close · note generated 2026-10-28 · 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