Airbnb ABNB shares are overvalued, as suggested by a Value Score of D. ABNB stock is trading at a significant premium with a forward 12-month Price/Sales (P/S) of 6.54X compared with the Zacks Leisure and Recreation Services industry’s 2.11X.
ABNB is trading at a premium compared with traveling service providers like Booking Holdings BKNG, Expedia EXPE and TripAdvisor TRIP. BKNG, EXPE and TRIP shares are currently trading at P/S of 6.1X, 1.55X and 1.1X, respectively.
Image Source: Zacks Investment Research
ABNB’s stretched valuation is a deterrent for investors. Shares have declined 1.2% year to date, outperforming the industry’s drop of 6.2% but lagging the Zacks Consumer Discretionary sector’s fall of 1%.
Image Source: Zacks Investment Research
However, Airbnb is seeing growth in Nights & Experiences Booked, which hit 111 million in fourth-quarter 2024, up 12% year over year….
