ABNBABNB
US • —
$141.10
P/E
34.78
PEG
13.38
FCF Yield
5.4%
Rev Growth YoY
+12.6% YoY
Gross Margin
72.2%
Health Score
8/10
D/E Ratio
0.24
Confidence
LOW
Business Snapshot
Airbnb operates a two-sided marketplace connecting hosts with guests for short-term rentals and experiences, generating revenue primarily through service fees charged to both parties. The company competes in the global online travel and accommodation market as a dominant challenger to traditional hotels and a leader in the alternative accommodations segment. It is a large-cap company with a market capitalisation of $85.04B, supported by $4.56B in free cash flow. The defining characteristic of Airbnb is its powerful network effects — more hosts attract more guests, and more guests incentivise more listings, creating a self-reinforcing competitive moat.
Financial Health
Airbnb's gross margin of 72.2% reflects its asset-light, software-driven business model, while net margin of 19.9% shows strong profitability from operating leverage. The balance sheet is conservative with a low debt-to-equity ratio of 0.24x and a current ratio of 1.38x, indicating ample liquidity to cover near-term obligations...
Risk Assessment
- VALUATION — P/E of 34.78x trades at a 58% premium to the sector average of 22x, implying elevated growth expectations that may not materialise.
- EARNINGS QUALITY — Only 1 of the last 4 quarters beat analyst estimates, suggesting a pattern of earnings misses that undermines management credibility.
- TECHNICALS — RSI, MACD, and moving average data unavailable for this period; momentum cannot be independently confirmed.
- VALUATION DIVERGENCE — The FMP DCF fair value is unavailable, and the Python DCF of $177.46 is a simplified estimate with high sensitivity to the terminal growth rate, creating uncertainty around intrinsic value.
- INSIDER ACTIVITY — 5 insider sells versus 0 buys over the last 90 days signals a lack of confidence in the current share price from those closest to the business....
Airbnb's gross margin of 72.2% reflects its asset-light, software-driven business model, while net margin of 19.9% shows strong profitability from operating leverage. The balance sheet is conservative with a low debt-to-equity ratio of 0.24x and a current ratio of 1.38x, indicating ample liquidity to cover near-term obligations. Free cash flow is an impressive $4.56B, representing a 5.4% free cash flow yield that demonstrates the company's ability to convert revenue into cash. The combination of strong margins, low leverage, and robust cash generation provides financial flexibility for reinvestment in platform growth or potential shareholder returns.
- VALUATION — P/E of 34.78x trades at a 58% premium to the sector average of 22x, implying elevated growth expectations that may not materialise. - EARNINGS QUALITY — Only 1 of the last 4 quarters beat analyst estimates, suggesting a pattern of earnings misses that undermines management credibility. - TECHNICALS — RSI, MACD, and moving average data unavailable for this period; momentum cannot be independently confirmed. - VALUATION DIVERGENCE — The FMP DCF fair value is unavailable, and the Python DCF of $177.46 is a simplified estimate with high sensitivity to the terminal growth rate, creating uncertainty around intrinsic value. - INSIDER ACTIVITY — 5 insider sells versus 0 buys over the last 90 days signals a lack of confidence in the current share price from those closest to the business.
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