Airbnb Inc. Analysis
A Comprehensive Look at the Ratings and Predictions for Airbnb, Inc (ABNB)
The global online marketplace company, Airbnb, Inc. (ABNB) operates on a platform that connects hosts and guests for stays and experiences worldwide. Listed on the NSD Exchange and notably recognized in the Travel Services sector, this analysis takes a holistic view of the company, scrutinizing its past performances, profitability ratios, valuation metrics, volatility analysis, and sector performance.
How Does ABNB‘s Stock Performance Compare To The Rest Of The Sector?
Airbnb’s trailing 12-month returns accounted for a capital gain of 49.52%, positioning the company at the 70th percentile in the sector for 1-Year capital gain and total return. Despite no dividend return over the previous year, the substantial capital gain has played a significant role in ABNB‘s overall sector ranking.
Looking at the broader picture, Airbnb’s 5-year growth analysis is impressive. The company has seen a 227.87% revenue growth, earning it the top percentile ranking in the sector for this category. Similarly, its 5-year earnings gain of a whopping 2802.51% also placed the company at the top of the sector’s percentile ranking for this metric.
What Do The Profitability Ratios Suggest About Airbnb?
ABNB‘s Return on Assets (RoA) stands robust at 7.5%, securing the company’s position in the top tenth percentile of the sector. Furthermore, the company’s Return on Equity (RoE) of 74.47% and Return on Invested Capital (RoIC) of 23.85% solidify its standing within the higher percentile rankings in its sector. However, a closer look at the Debt Equity Ratio, found at 35.74%, reveals Airbnb falls short by placing in the lower third of the sector.
Can Airbnb’s Valuation Ratios Justify Its Market Worth?
When analyzing Airbnb’s valuation ratios, the numbers communicate an impulsive narrative. The Price to Earnings Ratio approximates 17.39, echoing the sector’s highest percentile ranking, suggesting a sturdy position. Meanwhile, its Price-to-Book Ratio resides at 9.88, which positions Airbnb around the median of the sector, and the Price-to-Cash Flow Ratio rests at 26.71, with a rather less impressive percentile ranking in the sector.
Is Airbnb’s Stock Volatility A Cause For Concern?
Airbnb’s stock volatility analysis reveals a Beta Coefficient of 1.22, which maintains its position in the top 70% within the sector. This indicates that the stock has moderately higher market-induced volatility than some of its sector counterparts but remains within a reasonable range.
What Do The Analysts Think?
Across a panel of 25 analysts, the consensus for Airbnb’s stock appears as a ‘Hold.’ The average analyst target price tallies to about $138.97 with a high estimate of $174 and a low of $100.
How Does Airbnb Compare Within The Travel Services Sector?
Within the Travel Services sector, the average rating suggests a strong buy, contrasting with the neutral rating endorsed by Stock Target Advisor. The trade-off balances reflect an average of 9.42% in 1-month returns and about 4.69% returns over the last week.
Has Recent News Impacted ABNB‘s Stock?
Despite the general optimism, recent news from Barclays Capital expresses a more cautious approach. They have downgraded Airbnb Inc. to “Underweight” from “Equal Weight,” reducing their 12-month target price from $135 to $100 per share, thus signifying a less optimistic forecast for the company’s performance.
What Does The Stock Target Advisor Recommend For Airbnb?
Furthermore, Stock Target Advisor envisions average analyst target of $138.97 and maintains a “Buy” rating on the stock with a target price of $134.27. The potential percent change is projected to be -6.04% in 12 months, thus keeping the sentiment as slightly bullish. The advisor weighs the signals of low volatility, positive cash flow, superior Return on Assets, and other key indicators.
To Invest or Not Invest: What Should One Do With Airbnb’s Stock?
Based on the analysis, despite Airbnb (ABNB) holding a “Buy” rating from Stock Target Advisor, the cautionary outlook by Barclays Capital and the higher-than-normal cash flow and book-to-value ratios, suggest investors implement a vigilant approach. It becomes essential to acknowledge that despite robust growth, there remain industry headwinds and competitive challenges to confront.
STA Research (StockTargetAdvisor.com) is a independent Investment Research company that specializes in stock forecasting and analysis with integrated AI, based on our platform stocktargetadvisor.com, EST 2007.
