ABNBABNB
US • —
$143.10
P/E
35.27
PEG
13.57
FCF Yield
—
Rev Growth YoY
+12.6% YoY
Gross Margin
72.2%
Health Score
7/10
D/E Ratio
0.24
Confidence
MEDIUM
Business Snapshot
Airbnb operates a global two-sided marketplace connecting hosts offering short-term rental properties with travelers seeking accommodations. The platform generates revenue primarily through service fees charged to both hosts and guests on each booking transaction. The company is a dominant player in the alternative accommodations market, competing against traditional hotel booking platforms and other short-term rental services. A key defining characteristic is its powerful network effects, where a larger guest base attracts more hosts and a greater inventory of listings attracts more travelers, creating a self-reinforcing competitive advantage.
Financial Health
Airbnb reports a strong gross margin of 72.2%, though comparable prior-year data is unavailable. Net margin stands at a healthy 19.9%, indicating efficient conversion of revenue to profit after all expenses...
Risk Assessment
- VALUATION — P/E of 35.27x is significantly above the sector average of 22x, making the stock expensive relative to its industry peers.
- EARNINGS QUALITY — Only 1 of the last 4 quarters beat earnings estimates, indicating poor management guidance credibility.
- INSIDER ACTIVITY — 6 insider sells versus 0 buys in the last 90 days signals a bearish sentiment from those most familiar with the company.
- TECHNICALS — RSI, MACD, and moving average data unavailable for this period; momentum cannot be independently confirmed....
Airbnb reports a strong gross margin of 72.2%, though comparable prior-year data is unavailable. Net margin stands at a healthy 19.9%, indicating efficient conversion of revenue to profit after all expenses. The balance sheet is conservative, featuring a low debt-to-equity ratio of 0.24x and a current ratio of 1.38x, suggesting ample liquidity and manageable leverage. Return on equity is robust at 31.2%, demonstrating high profitability relative to shareholder equity. Free cash flow data is not provided, preventing a full assessment of cash generation. Overall, the company displays solid operating profitability and a healthy financial structure.
- VALUATION — P/E of 35.27x is significantly above the sector average of 22x, making the stock expensive relative to its industry peers. - EARNINGS QUALITY — Only 1 of the last 4 quarters beat earnings estimates, indicating poor management guidance credibility. - INSIDER ACTIVITY — 6 insider sells versus 0 buys in the last 90 days signals a bearish sentiment from those most familiar with the company. - TECHNICALS — RSI, MACD, and moving average data unavailable for this period; momentum cannot be independently confirmed.
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