Expedia Stock To $258?

Expedia (EXPE) stock has jumped 5.1% during the past day, and is currently trading at $198.12. Our multi-factor assessment suggests that it may be time to buy more shares of EXPE stock. We have, overall, a positive view of the stock, and a price of $258 may not be out of reach. We believe there is a near-equal mix of good and bad in EXPE stock given its overall Moderate operating performance and financial condition. Considering stock’s Low valuation we think it is Attractive.

Below is our assessment:

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Let’s get into details of each of the assessed factors but before that, for quick background: With $24 Bil in market cap, Expedia operates as an online travel company offering retail, B2B, and trivago services with a portfolio including full-service and localized booking brands like Hotels.com and Vrbo.

[1] Valuation Looks Low

This table highlights how EXPE is valued vs broader market. For more details see: EXPE Valuation Ratios

[2] Growth Is Moderate

• Expedia has seen its top line grow at an average rate of 8.1% over the last 3 years
• Its revenues have grown 7.6% from $14 Bil to $15 Bil in the last 12 months
• Also, its quarterly revenues grew 11.4% to $3.5 Bil in the most recent quarter from $3.2 Bil a year ago.

This table highlights how EXPE is growing vs broader market. For more details see: EXPE Revenue Comparison

[3] Profitability Appears Moderate

• EXPE last 12 month operating income was $2.2 Bil representing operating margin of 14.7%
• With cash flow margin of 26.3%, it generated nearly $3.9 Bil in operating cash flow over this period
• For the same period, EXPE generated nearly $1.3 Bil in net income, suggesting net margin of about 8.8%

This table highlights how EXPE profitability vs broader market. For more details see: EXPE Operating Income Comparison

[4] Financial Stability Looks Strong

• EXPE Debt was $6.4 Bil at the end of the most recent quarter, while its current Market Cap is $24 Bil. This implies Debt-to-Equity Ratio of 26.4%
• EXPE Cash (including cash equivalents) makes up $5.7 Bil of $24 Bil in total Assets. This yields a Cash-to-Assets Ratio of 23.4%

[5] Downturn Resilience Is Very Weak

EXPE has fared much worse than the S&P 500 index during various economic downturns. We assess this based on both (a) how much the stock fell and, (b) how quickly it recovered.

2022 Inflation Shock

• EXPE stock fell 60.9% from a high of $213.80 on 16 February 2022 to $83.69 on 28 December 2022 vs. a peak-to-trough decline of 25.4% for the S&P 500.
• However, the stock fully recovered to its pre-Crisis peak by 22 August 2025
• Since then, the stock increased to a high of $301.31 on 8 January 2026 , and currently trades at $198.12

 
2020 Covid Pandemic

• EXPE stock fell 62.8% from a high of $122.80 on 14 February 2020 to $45.65 on 18 March 2020 vs. a peak-to-trough decline of 33.9% for the S&P 500.
• However, the stock fully recovered to its pre-Crisis peak by 9 November 2020

 
2008 Global Financial Crisis

• EXPE stock fell 82.7% from a high of $70.08 on 5 October 2007 to $12.10 on 20 November 2008 vs. a peak-to-trough decline of 56.8% for the S&P 500.
• However, the stock fully recovered to its pre-Crisis peak by 7 January 2014

But the risk is not limited to major market crashes. Stocks fall even when markets are good – think events like earnings, business updates, outlook changes. Read EXPE Dip Buyer Analyses to see how the stock has recovered from sharp dips in the past.

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