Expedia (EXPE) AI Stock Analysis

• Market Cap: $25.14B
• Dividend Yield: 0.39%
• Average Volume (3M): 1.76M
• Price to Earnings (P/E): 24.9
• Beta (1Y): 1.52
• Revenue Growth: 5.69%
• EPS Growth: 47.33%
• Country: US
• Employees: 16,500
• Sector: Consumer Cyclical
• Sector Strength: 71
• Industry: Travel Services
• EPS (TTM): 4.24
• Shares Outstanding: 118,192,130
• 10 Day Avg. Volume: 2,482,639
• 30 Day Avg. Volume: 1,757,771
• PEG Ratio: 0.28
• Price to Book (P/B): 15.73
• Price to Sales (P/S): 1.79
• P/FCF Ratio: 10.52
• Enterprise Value/Market Cap: 0.85
• Enterprise Value/Revenue: 1.55
• Enterprise Value/Gross Profit: 1.76
• Enterprise Value/Ebitda: 8.30
• 1Y Price Target: $222.48
• Price Target Upside: 9.49% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 24

• Rating: 78 Outperform
• Price Target: $223.00 ▲(9.75% Upside)

Expedia's strong financial performance and positive earnings call results are the most significant factors driving the score. The company shows robust growth in key segments and strategic use of AI, although high leverage and challenges in the U.S. market present risks. Technical indicators support a positive outlook, but valuation metrics suggest a fair, not overly attractive, investment.

Positive Factors

Financial Performance

Expedia delivered better-than-expected results whereby Gross Bookings and EBITDA came in above consensus.

Market Growth

RN growth reaccelerated to 7% led by international growth, with an uptick in U.S. demand trends.

Strategic Initiatives

Analysts remain constructive in EXPE’s ability to execute on strategic initiatives, execute on Adj. EBITDA margin expansion & return capital to shareholders.

Negative Factors

Booking Challenges

Hotels.com Gross Bookings declined as Vrbo experienced challenges with declining bookings due to lower Average Daily Rates, shorter booking windows, and higher cancellations.

Cynical Market View

The cynical view is that Expedia always overshoots at each quarter, and reverses at the next.

Market Pressure

The US market continues to see pressure on inbound travel, with shorter booking windows and higher cancellation rates.

Expedia Business Overview & Revenue Model

Company Description

Expedia Group, Inc. is a leading online travel company that operates a diverse portfolio of travel brands, including Expedia.com, Hotels.com, Vrbo, and Trivago. The company provides a comprehensive range of travel services, including hotel bookings, vacation rentals, airline tickets, car rentals, and travel packages. With a global reach, Expedia connects travelers with various accommodations and experiences, leveraging technology and data analytics to enhance user experience and streamline the booking process.

How the Company Makes Money

Expedia primarily generates revenue through a variety of channels, including transaction fees, commissions, and advertising revenue. The company's core revenue model involves earning commissions from hotel bookings, airline tickets, and car rentals made through its platforms. Additionally, Expedia offers vacation rental services through Vrbo, which also contributes to its commission-based earnings. The company has established significant partnerships with airlines, hotels, and travel service providers, which enhance its inventory and offerings. Moreover, Expedia earns advertising revenue from travel-related businesses that utilize its sites for promoting their services. The combination of these revenue streams, along with a focus on expanding its brand presence and enhancing user engagement, drives Expedia's financial performance.

Expedia Financial Statement Overview

Summary

Expedia demonstrates a strong financial position with substantial revenue growth and profitability, supported by effective cash flow management. However, high leverage and declining equity levels present potential risks. The company is well-positioned within the travel services industry, but must manage its debt carefully to sustain its growth trajectory.

Income Statement

Expedia's income statement shows a robust performance with strong margins. The gross profit margin for the TTM (Trailing-Twelve-Months) is approximately 88%, and the net profit margin is around 8.5%, indicating efficient cost management. Revenue growth has been consistent, with a notable increase year-over-year from 2020 to 2023. The EBIT and EBITDA margins are also healthy, suggesting operational efficiency. However, there was a decline in net income from the previous annual report, which slightly tempers the overall positive trajectory.

Balance Sheet

The balance sheet reveals a mixed picture with a strong equity ratio of around 4.1% for the TTM. The debt-to-equity ratio is notably high, at approximately 1.87, indicating significant leverage which could pose risks if not managed carefully. However, the company has a considerable amount of cash and cash equivalents, enhancing its liquidity position. Return on equity is a strong 109%, suggesting effective use of shareholder capital, though declining equity levels could be a concern.

Cash Flow

Expedia's cash flow statement shows a solid performance with a significant free cash flow of $3.144 billion for the TTM, reflecting a healthy cash generation capacity. The operating cash flow to net income ratio is robust at about 2.7, indicating strong cash conversion. The free cash flow growth rate has been impressive over the years, although capital expenditures have decreased, which might impact future growth. Overall, the company's cash flow management appears strong, supporting its operational needs and financial flexibility.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	13.79B	13.69B	12.84B	11.67B	8.60B	5.20B
Gross Profit	12.14B	12.25B	11.27B	10.01B	7.08B	3.52B
EBITDA	2.57B	2.63B	2.07B	1.61B	1.13B	-1.90B
Net Income	1.17B	1.23B	797.00M	352.00M	12.00M	-2.61B
Balance Sheet
Total Assets	26.11B	22.39B	21.64B	21.56B	21.55B	18.69B
Cash, Cash Equivalents and Short-Term Investments	6.13B	4.48B	4.25B	4.14B	4.31B	3.39B
Total Debt	6.47B	6.59B	6.57B	6.63B	8.89B	8.86B
Total Liabilities	23.79B	19.59B	18.86B	17.83B	18.00B	14.66B
Stockholders Equity	1.07B	1.56B	1.53B	2.28B	2.06B	2.53B
Cash Flow
Free Cash Flow	3.14B	2.33B	1.84B	2.78B	3.08B	-4.63B
Operating Cash Flow	3.16B	3.08B	2.69B	3.44B	3.75B	-3.83B
Investing Cash Flow	-1.41B	-1.26B	-800.00M	-580.00M	-931.00M	-263.00M
Financing Cash Flow	-1.58B	-1.75B	-2.10B	-2.62B	-973.00M	4.08B

Expedia Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 203.19
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For EXPE, the sentiment is Positive. The current price of 203.19 is above the 20-day moving average (MA) of 186.45, above the 50-day MA of 177.78, and above the 200-day MA of 174.93, indicating a bullish trend. The MACD of 4.53 indicates Negative momentum. The RSI at 69.98 is Neutral, neither overbought nor oversold. The STOCH value of 58.99 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for EXPE.

Expedia Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
EXPE	78 Outperform	$25.14B	24.86	129.04%	0.39%	5.69%	47.33%
TRIP	74 Outperform	$2.09B	37.79	8.76%	―	3.03%	187.03%
ABNB	68 Neutral	$75.57B	29.34	33.26%	―	10.23%	-44.56%
TCOM	67 Neutral	$39.56B	17.39	12.49%	0.47%	16.23%	56.05%
MMYT	65 Neutral	$8.99B	107.24	22.38%	―	18.13%	-55.21%
BKNG	64 Neutral	$173.85B	37.31	-146.32%	0.67%	11.72%	0.51%
Sector *	61 Neutral	$17.22B	11.58	-7.48%	3.16%	1.46%	-15.87%

Expedia Corporate Events

Expedia Announces Quarterly Dividend Amid Strong Q2 Results

On August 7, 2025, Expedia Group announced a quarterly cash dividend of $0.40 per share, payable on September 18, 2025. The company reported its second quarter 2025 financial results, highlighting a 5% growth in bookings and a 6% increase in revenue year-over-year. Despite a decrease in GAAP net income by 14%, adjusted net income grew by 16%, and adjusted EBITDA increased by 16% with margin expansion. Expedia repurchased $627 million worth of shares in the quarter and increased its full-year guidance, indicating strong performance driven by growth in B2B and advertising sectors.

The most recent analyst rating on (EXPE) stock is a Hold with a $150.00 price target. To see the full list of analyst forecasts on Expedia stock, see the EXPE Stock Forecast page.

Expedia Stockholders Approve Key Proposals at Annual Meeting

On June 3, 2025, Expedia Group, Inc. held its 2025 Annual Meeting of Stockholders where three key proposals were voted on. Stockholders elected 11 directors to the Board, approved the compensation of the company’s named executive officers, and ratified the appointment of Ernst & Young LLP as the independent registered public accounting firm for the fiscal year ending December 31, 2025. These decisions reflect the company’s ongoing governance and operational strategies, potentially influencing its market positioning and stakeholder relations.

The most recent analyst rating on (EXPE) stock is a Buy with a $205.00 price target. To see the full list of analyst forecasts on Expedia stock, see the EXPE Stock Forecast page.