Tripadvisor, Inc. (TRIP)
Consumer Cyclical · NMS · US
Fundamentals
Valuation and ratings
Tripadvisor, Inc. trades at USD14.89, which is 60% above the USD5.96 our discounted cash flow model puts on the business. On that measure it screens as expensive, which is not the same as saying it will fall.
Our moat model scores it 34 out of 100, which is little in the way of a moat. A moat is a structural reason competitors cannot take the profits away, and it matters more to a long holding period than any single quarter's numbers do.
It changes hands at 135.4 times earnings. Be careful reading that in isolation: for a cyclical business a low P/E arrives at the top of the cycle, when profits are peaking and about to fall, which is exactly when the shares look cheapest and are not.
About Tripadvisor, Inc.
Tripadvisor, Inc., an online travel company, engages in the provision of travel guidance products and services worldwide. The company operates through three segments: Experiences, Hotels and Other, and TheFork. The Experiences segment operates an online travel agency for tours, activities, and attractions, and acts as travel guidance platforms for travelers to discover, generate, and share authentic user-generated content in the form of ratings and reviews and opinions for destinations, points-of-interest, experiences, accommodations, restaurants, and cruises. The Hotels and Other segment primarily consist of the Tripadvisor hotel and restaurant guidance platform, which include hotel metasearch, and related advertising offerings primarily for hotels and restaurants. TheFork segment provides an online marketplace, which enables diners to discover and book online reservations at restaurants. Tripadvisor, Inc. was founded in 2000 and is headquartered in Needham, Massachusetts.
Smart money ownership
9 of the funds we track reported a position in their latest SEC 13F filing. Largest first:
- Jeff Smith, Starboard Value LP$114.86M · 2.5% of book
- Mason Hawkins, SOUTHEASTERN ASSET MANAGEMENT INC/TN/$98.03M · 2.5% of book
- Cliff Asness, AQR CAPITAL MANAGEMENT LLC$4.49M · 0.0% of book
- D. E. Shaw, D. E. Shaw & Co., Inc.$3.29M · 0.0% of book
- Marshall Wace, MARSHALL WACE, LLP$730.0K · 0.0% of book
A word of warning on reading these figures: a 13F reports the market value of a holding, so a fund that traded nothing at all still appears to have sold when the price fell. We found 102 companies where the standard reading gives the opposite answer. Only the share count is honest.
Common questions
Is Tripadvisor, Inc. (TRIP) undervalued?
Against our discounted cash flow estimate of USD5.96, TRIP at USD14.89 is 60% above fair value. That is one model's answer, not a recommendation, and most of a DCF's output sits in a terminal value nobody can forecast.
Which funds own TRIP?
9 of the institutions we track reported a position in TRIP in their most recent SEC 13F filing. A 13F is filed up to 45 days after quarter end, so it tells you what a fund held then, not what it holds now.
What is TRIP's P/E ratio?
TRIP trades at 135.4 times earnings. A low P/E is not automatically cheap: on a cyclical company it is usually a warning that earnings are at a peak.
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Data from company filings, exchange quotes and SEC EDGAR 13F disclosures. Quotes are delayed. Metrics we do not have are left out rather than estimated. Educational information, not financial advice.