Don't Judge Airbnb on Technicals Alone - Check Its Fundamentals!

By Ken Smith • Thursday, October 05 12:56 • Permanent Link

Large-cap Consumer Discretionary company Airbnb has moved -2.6% so far today on a volume of 4,051,711, compared to its average of 6,737,654. In contrast, the S&P 500 index moved -1.0%.

Airbnb trades -13.09% away from its average analyst target price of $142.83 per share. The 30 analysts following the stock have set target prices ranging from $75.0 to $185.0, and on average have given Airbnb a rating of hold.

If you are considering an investment in ABNB, you'll want to know the following:

Airbnb's current price is 397.1% above its Graham number of $24.97, which implies that at its current valuation it does not offer a margin of safety
Airbnb has moved 11.0% over the last year, and the S&P 500 logged a change of 14.0%
Based on its trailing earnings per share of 3.19, Airbnb has a trailing 12 month Price to Earnings (P/E) ratio of 38.9 while the S&P 500 average is 15.97
ABNB has a forward P/E ratio of 29.6 based on its forward 12 month price to earnings (EPS) of $4.2 per share
The company has a price to earnings growth (PEG) ratio of 1.53 — a number near or below 1 signifying that Airbnb is fairly valued compared to its estimated growth potential
Its Price to Book (P/B) ratio is 15.48 compared to its sector average of 3.12
Airbnb, Inc., together with its subsidiaries, operates a platform that enables hosts to offer stays and experiences to guests worldwide.
Based in San Francisco, the company has 6,811 full time employees and a market cap of $79.21 Billion.

The above analysis is intended for educational purposes only and was performed on the basis of publicly available data. It is not to be construed as a recommendation to buy or sell any security. Any buy, sell, or other recommendations mentioned in the article are direct quotations of consensus recommendations from the analysts covering the stock, and do not represent the opinions of Market Inference or its writers. Past performance, accounting data, and inferences about market position and corporate valuation are not reliable indicators of future price movements. Market Inference does not provide financial advice. Investors should conduct their own review and analysis of any company of interest before making an investment decision.