Expedia Story

<div class='circular--portrait' style='background:#169D0B;color: #E6E6FA;font-size:3em;'>EXP</div>
EXPE -- USA Stock  

USD 97.40  1.63  1.65%

In this story I am going to address all ongoing Expedia shareholders. I will look into why despite ongoing dip, the longer-term fundamental drivers of the firm are still sound. Expedia Group shows prevailing Real Value of $138.89 per share. The current price of the firm is $130.55. At this time the firm appears to be undervalued. This module computes value of Expedia Group from reviewing the firm fundamentals such as Profit Margin of 5.36%, Shares Outstanding of 141M and Current Valuation of 20.63B as well as analyzing its technical indicators and Probability Of Bankruptcy. In general, we advise to go long with undervalued instruments and to sell out overvalued instruments since at some point assets prices and their ongoing real values will submerge.
Published over a year ago
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Is Expedia getting uncontrollable?
The firm shows Beta (market volatility) of -0.0706 which denotes to the fact that as returns on market increase, returns on owning Expedia are expected to decrease at a much smaller rate. During bear market, Expedia is likely to outperform the market. Even though it is essential to pay attention to Expedia Group historical returns, it is always good to be careful when utilizing equity current trending patterns. Macroaxis philosophy towards predicting future performance of any stock is to check both, its past performance charts as well as the business as a whole, including all available technical indicators. Expedia Group exposes twenty-one different technical indicators which can help you to evaluate its performance. Expedia Group has expected return of -0.0621%. Please be advised to confirm Expedia Group Treynor Ratio as well as the relationship between Downside Variance and Kurtosis to decide if Expedia Group past performance will be repeated at some point in the near future. The company has Profit Margin (PM) of 5.36 % which can be a sign that it executes well on its competitive strategies and has a good control over its expenditures. This is normal as compared to the sector avarege. Similarly, it shows Operating Margin (OM) of 11.99 % which suggests for every 100 dollars of sales it generated a net operating income of 0.12.
What is the right price you would pay to acquire a share of Expedia? For most investors, it would be the price that gives them a wide margin of safety to have minimal downside risk. In other words, most investors are always looking for undervalued stocks. Even if the future performance is not entirely as expected, the loss of holding it is minimized, and the downside risk is negated. Please read more on our stock advisor page.

What is happening with Expedia Group this year

Annual and quarterly reports issued by Expedia Group are formal financial statements that are published yearly and quarterly and sent to Expedia stockholders. The reports show and break down the current year's ongoing operations and discuss plans for the upcoming year. Annual reports have been a requirement from the Securities and Exchange Commission (SEC) for businesses owned by the public since 1934. Companies such as Expedia often view their annual report as an effective marketing tool to disseminate their perspective on company future earnings or innovations. With this in mind, many companies devote large sums of money to making their reports attractive and informative. In such instances, the annual report becomes a forum through which a company can communicate to the general public any number of topics that may or may not be directly related to the actual data published in the reports.

How Expedia utilizes its cash?

To perform a cash flow analysis of Expedia, investors first need to understand how to read the cash flow statement. A cash flow statement shows the amount of cash Expedia is receiving and how much cash it distributes out in a given period. The Expedia cash flow statement breaks down these inflows and outflows into different buckets, including operating activities, investing activities, and financing activities. Expedia Net Cash Flow from Operations is projected to increase significantly based on the last few years of reporting. The past year's Net Cash Flow from Operations was at 2.77 Billion

Is Expedia valued correctly by the market?

This firm currently holds 4.29B in liabilities with Debt to Equity (D/E) ratio of 72.2 indicating Expedia may have difficulties to generate enough cash to satisfy its financial obligations. The company has Current Ratio of 0.74 indicating that it has a negative working capital and may not be able to pay financial obligations when they are due. The small decline in market price for the last few months could raise concerns from investors as the firm closed today at a share price of 128.95 on 1202638.000 in volume. The company management did not add much value to Expedia investors in August. However, diversifying your holdings with Expedia Group or similar stocks can still protect your portfolio during high-volatility market scenarios. The stock standard deviation of daily returns for 30 days (very short) investing horizon is currently 1.184. The below-average Stock volatility is a good sign for a longer term investment options and for buy-and-hold investors. Expedia preserves 2.4 of z score. Expedia is trading at 130.55. This is 0.29 percent up. Today highest was 130.61. Expedia Debt Current is decreasing over the last 4 years. Also, Expedia Net Income Common Stock is decreasing over the last 4 years.

 2018 2019 (projected)
Expedia Consolidated Income 88,219,950  129,041,859 
Expedia Direct Expenses 1,965,000,000  1,531,257,347 

To conclude, our research shows that Expedia is very steady with below average probability of distress in the next two years. Our current buy vs. sell advice on the firm is Cautious Hold.

About Contributor

This story should be regarded as informational only and should not be considered a solicitation to sell or buy any financial products. Macroaxis does not express any opinion as to the present or future value of any investments referred to in this post. This post may not be reproduced without the consent of Macroaxis LLC. Macroaxis LLC and Vlad Skutelnik do not own shares of Expedia Group. Please refer to our Terms of Use for any information regarding our disclosure principles.

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