| 2015 | 2016 | 2017 | 2018 | 2019 (projected) | Booking Holdings Revenues USD | 9,223,987,000 | 10,743,006,000 | 12,681,082,000 | 11,412,973,800 | 7,564,921,958 | Booking Holdings Revenues | 9,223,987,000 | 10,743,006,000 | 12,681,082,000 | 11,412,973,800 | 14,530,000,000 |
Time to exit Booking Holdings is now
 | By Rifka Kats | Macroaxis Story |
The company current daily volatility is 2.16 percent, with beta of 0.11 and alpha of 0.03 over S&P 500. We consider Booking Holdings not too risky. Booking Holdings secures Sharpe Ratio (or Efficiency) of 0.0448 which signifies that the organization had 0.0448% of return per unit of risk over the last 1 month. Our philosophy towards foreseeing volatility of a stock is to use all available market data together with stock specific technical indicators that cannot be diversified away. We have found twenty-eight technical indicators for Booking Holdings which you can use to evaluate future volatility of the firm. Please confirm Booking Holdings Risk Adjusted Performance of 0.0261, Downside Deviation of 3.0 and Mean Deviation of 1.24 to double-check if risk estimate we provide are consistent with the epected return of 0.0969%.
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Reviewed by Michael Smolkin
Booking Holdings currently holds 8.67B in liabilities with Debt to Equity (D/E) ratio of 98.7 indicating the organisation may have difficulties to generate enough cash to satisfy its financial obligations. This firm dividends can provide a clue to current valuation of the stock. Booking Holdings is not expected to issue dividends this year as it trying to preserve or re-invest any of the funds available for distribution to stakeholders. Let me now analyze Booking Holdings Beta. In accordance with recently published financial statements Booking Holdings has Beta of 0.57. This is much higher than that of the Consumer Cyclical sector, and significantly higher than that of Leisure industry, The Beta for all stocks is notably lower than Booking Holdings. Booking Holdings financial leverage ratio helps determine the effect of debt on the overall profitability of the company. It measures the total debt position of Booking Holdings, including all of Booking Holdings's outstanding debt obligations, and compares it with the equity. In simple terms, the high financial leverage means the cost of production, together with running the business day-to-day, is high, whereas, lower financial leverage implies lower fixed cost investment in the business and generally considered by investors to be a good sign. So if creditors own a majority of Booking Holdings assets, the company is considered highly leveraged. Understanding the composition and structure of overall Booking Holdings debt and outstanding corporate bonds gives a good idea of how risky the capital structure of a business is and if it is worth investing in it. Please read more on our technical analysis page.
Understanding Booking Total Liabilities
Booking Holdings liabilities are broken down into two parts on the balance sheet. These are short-term (or current) obligations and long-term debt. Booking Holdings has to fulfill its short-term liabilities in this reporting year and should be no more than 12 months old. Long-term debt, on the other hand, is anything beyond the 12-month payment timeframe. Common short-term liabilities found on Booking Holdings balance sheet include debt obligations and money owed to different Booking Holdings vendors, workers, and loan providers. Below is the chart of Booking short long-term liabilities accounts currently reported on its balance sheet. You can use Booking Holdings financial leverage analysis tool to get a better grip on understanding its financial positionHow important is Booking Holdings's Liquidity
Booking Holdings financial leverage refers to using borrowed capital as a funding source to finance Booking Holdings ongoing operations. It is usually used to expand the firm's asset base and generate returns on borrowed capital. Booking Holdings financial leverage is typically calculated by taking the company's all interest-bearing debt and dividing it by total capital. So the higher the debt-to-capital ratio (i.e., financial leverage), the riskier the company. Financial leverage can amplify the potential profits to Booking Holdings' owners, but it also increases the potential losses and risk of financial distress, including bankruptcy, if the firm cannot cover its debt costs. The degree of Booking Holdings' financial leverage can be measured in several ways, including by ratios such as the debt-to-equity ratio (total debt / total equity), equity multiplier (total assets / total equity), or the debt ratio (total debt / total assets). Please check the breakdown between Booking Holdings's total debt and its cash.
Breaking it down a bit more
The current investor indifference towards the small price fluctuations of Booking Holdings could raise concerns from investors as the firm closed today at a share price of 1741.66 on 378659 in volume. The company directors and management did not add any value to Booking Holdings investors in February. However, most investors can still diversify their portfolios with Booking Holdings to hedge your portfolio against high-volatility market scenarios. The stock standard deviation of daily returns for 30 days (very short) investing horizon is currently 2.1618. The current volatility is consistent with the ongoing market swings in February 2019 as well as with Booking Holdings unsystematic, company specific events. Booking Holdings is selling at 1744.28. That is 1.39 percent decrease. Opened at 1744.28. Booking Holdings Weighted Average Shares is increasing over the last 5 years. The ongoing value of Booking Holdings Weighted Average Shares is 45,010,000. Also, Booking Holdings Accounts Payable Turnover is rather stable at the moment.
To conclude, our actual Buy/Hold/Sell recommendation on the firm is Sell. We believe Booking Holdings is undervalued with below average probability of financial unrest for the next two years.
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