In the past 12 months, Expedia Group Inc. (NASDAQ:EXPE) has delivered a decent gain of 29%. However, its long-term performance is a bit disappointing. In the past 10 years, it has only returned 90%, or a compounded annual return of 6.60%, which is lower than the S&P 500 at 10.30%.
As such, with the projected business growth going forward, the stock is quite undervalued at the current price.
Business overview
Expedia is a leading online travel company that has a comprehensive global network with more than 3 million lodging properties, including 940,000 hotels, alongside partnerships with over 500 airlines and a wide array of rental car services, cruises, insurance options and experiences. This extensive offering is made accessible through three consumer brands: Expedia, Hotels.com and Vrbo. The company operates across three main segments: Business to Consumer, Business to Business and Trivago.
The business-to-consumer segment, which is the primary source of revenue, generated $9.1…
