Airbnb may be overvalued with poor growth indicators, but the 31 analysts following the company give it an average rating of buy. The analysts have set target prices ranging from $98.0 to $185.0 per share, for an average of $138.74. At today's price of $113.24, Airbnb is trading -18.38% away from its average target price, suggesting there is an analyst consensus of some upside potential.
Airbnb, Inc., together with its subsidiaries, operates a platform that enables hosts to offer stays and experiences to guests worldwide. Based in San Francisco, CA, the large-cap Consumer Discretionary company has 6,811 full time employees. Airbnb has not offered a dividend during the last year.
Airbnb has a trailing twelve month P/E ratio of 40.9, compared to an average of 22.33 for the Consumer Discretionary sector. Based on its EPS guidance of 4.0, the company has a forward P/E ratio of 28.3.
Furthermore, Airbnb is likely overvalued compared to its book value, since its P/B ratio of 12.9 is higher than the sector average of 3.12. The company's shares are currently trading 383.2% above their Graham number, implying that they are overvalued in terms of earnings and book value.
If analysts are giving the the company a decent rating despite its hefty price point, it could be related to its strong cash flows. You can see for yourself in the financial summary table below:
| 2019-12-31 | 2020-12-31 | 2021-12-31 | 2022-12-31 | |
|---|---|---|---|---|
| Revenue (MM) | $4,805 | $3,378 | $5,992 | $8,399 |
| Revenue Growth | n/a | -29.7% | 77.37% | 40.18% |
| Gross Margins | 75.1% | 74.1% | 80.7% | 82.2% |
| Gross Margins Growth | n/a | -1.33% | 8.91% | 1.86% |
| Operating Margins | -10.4% | -101.8% | 9.0% | 22.5% |
| Operating Margins Growth | n/a | -878.85% | 108.84% | 150.0% |
| Net Margins | -14.03% | -135.71% | -5.88% | 22.54% |
| Net Margins Growth | n/a | -867.28% | 95.67% | 483.33% |
| Earnings Per Share | -$1.29 | -$16.12 | -$0.57 | $2.77 |
| EPS Growth | n/a | -1149.61% | 96.46% | 585.96% |
| Diluted Shares (MM) | 522 | 284 | 616 | 409 |
| Free Cash Flow (MM) | $97 | -$667 | $2,164 | $3,405 |
| FCF Growth | n/a | -785.79% | 424.44% | 57.32% |
| Capital Expenditures (MM) | -$125 | -$37 | -$25 | -$25 |
| Net Debt / EBITDA | nan | 0.85 | -10.35 | -2.44 |
