Expedia Stock Analysis (NASDAQ:EXPE)
Expedia Analysis Video
View Expedia stock analysis video. This is our EXPE analyst opinion covering the buy and sell arguments for EXPE stock.
Expedia Inc Stock Rating (2.4/5)
Our Expedia stock opinion is based on fundamentals of the company. This Expedia stock analysis is based on latest Q4 earnings for 2016. The stock price analysis takes into account a company's valuation metrics.
Should you buy EXPE stock?
- The Year Over Year (YoY) revenue growth for Expedia was 23.2% in 2016 Q4.
- Long term revenue growth has been strong with a 5 year compounded annual growth of 18.4%.
Should you sell EXPE stock?
- With a debt/equity ratio of 0.56, Expedia is highly leveraged in comparison to Retail-Wholesale peers.
- Cash flow from operations is 0.3 times net income which is a negative signal.
- Trading at a PE ratio of 37.1, EXPE stock is overvalued in comparison to industry average multiple of 18.4.
- The company is trading at a price to sales multiple of 2.2, which is higher in comparison to the Internet Commerce industry average of 0.7, making EXPE stock expensive.
- The TTM ROE (Return On Equity) for Expedia is not so attractive at 5.7%.
- Expedia has a negative FCF (Free Cash Flow) margin of -7.7%.