EXPE Stock Analysis — Expedia Group
Sector: Online Travel
AI Verdict
Expedia trades at just 12.4x next year's earnings while analysts expect EPS to more than double, which is cheap for the growth you're getting if the network effect moat keeps competitors at bay.
Competitive Moat
Expedia Group aggregates travel inventory across hotels, airlines, and car rentals, leveraging scale and longstanding supplier relationships to offer broad selection and competitive pricing. Its defensibility comes from entrenched network effects—more listings attract more users, which in turn attract more suppliers, making it hard for new entrants to match breadth or pricing.
Summary
Expedia is notable right now for a projected 102.7% jump in earnings next year, far outpacing its 7.6% trailing revenue growth.
Where It Stands
The stock is up 49.74% over the past year, trades at 25.1x trailing earnings (in line with tech hardware/semis median), but only 12.4x forward earnings, with an RSI of 44.9 signaling cooling momentum.
Key Metrics
- RSI: 44.9 — Neutral
- Trailing P/E: 25.1x
- Forward P/E: 12.4x
- PEG Ratio: 0.24
- Earnings Growth: +1.0%
- Revenue Growth: +0.1%
- Market Cap: $29.6B
- Dividend Yield: 0.01%
- 1-Year Return: 49.74%
- 52-Week High: $303.80
- 52-Week Low: $148.55
Analyst Consensus
21 Buy · 22 Hold · 1 Sell (44 analysts)
Bull Case
A forward P/E of 12.4x for 102.7% expected EPS growth is cheap for the growth on offer, especially given Expedia's network effect moat.
Bear Case
If the forward P/E reverts to the sector median of 20x instead of 12.4x, the stock could see a significant rerating if growth disappoints, and the RSI at 44.9 suggests buyers are not rushing in.
Catalyst to Watch
Watch for quarterly earnings—if EPS growth even approaches the 102.7% consensus, the low forward P/E could quickly look like a bargain.