Key Insights
- The projected fair value for Booking Holdings is US$7,555 based on 2 Stage Free Cash Flow to Equity
- Current share price of US$5,211 suggests Booking Holdings is potentially 31% undervalued
- Analyst price target for BKNG is US$5,045 which is 33% below our fair value estimate
Today we will run through one way of estimating the intrinsic value of Booking Holdings Inc. (NASDAQ:BKNG) by taking the expected future cash flows and discounting them to their present value. One way to achieve this is by employing the Discounted Cash Flow (DCF) model. Believe it or not, it’s not too difficult to follow, as you’ll see from our example!
We generally believe that a company’s value is the present value of all of the cash it will generate in the future. However, a DCF is just one valuation metric among many, and it is not without flaws. For those who are keen learners of equity analysis, the Simply Wall St analysis model here may be something of interest to you.














