Airbnb, Inc.
Airbnb, Inc. Fundamental Analysis
Airbnb, Inc. (ABNB) shows moderate financial fundamentals with a PE ratio of 31.57, profit margin of 19.90%, and ROE of 31.24%. The company generates $12.6B in annual revenue with strong year-over-year growth of 10.26%.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of 80.5/100 based on profitability, valuation, growth, and balance sheet metrics. The B+ grade reflects solid fundamentals with room for improvement in valuation or growth.
Fundamental Health Score
We analyze ABNB's fundamental strength across five key dimensions:
Efficiency Score
WeakABNB struggles to generate sufficient returns from assets.
Valuation Score
WeakABNB trades at a premium to fair value.
Growth Score
ModerateABNB shows steady but slowing expansion.
Financial Health Score
ExcellentABNB maintains a strong and stable balance sheet.
Profitability Score
ExcellentABNB achieves industry-leading margins.
Key Financial Metrics
Is ABNB Expensive or Cheap?
P/E Ratio
ABNB trades at 31.57 times earnings. This suggests a premium valuation.
PEG Ratio
When adjusting for growth, ABNB's PEG of 15.94 indicates potential overvaluation.
Price to Book
The market values Airbnb, Inc. at 10.40 times its book value. This suggests the stock is fully valued or overvalued on an asset basis.
EV/EBITDA
Enterprise value stands at 32.50 times EBITDA. This signals the market has high growth expectations.
How Well Does ABNB Make Money?
Net Profit Margin
For every $100 in sales, Airbnb, Inc. keeps $19.90 as profit after all expenses.
Operating Margin
Core operations generate 20.49 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $31.24 in profit for every $100 of shareholder equity.
ROA
Airbnb, Inc. generates $9.38 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
Airbnb, Inc. generates strong operating cash flow of $4.53B, reflecting robust business health.
Free Cash Flow
Airbnb, Inc. generates strong free cash flow of $4.51B, providing ample flexibility for dividends, buybacks, or growth.
FCF Per Share
Each share generates $7.61 in free cash annually.
FCF Yield
ABNB converts 5.76% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
31.57
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
15.94
vs 25 benchmark
P/B Ratio
Price to book value ratio
10.40
vs 25 benchmark
P/S Ratio
Price to sales ratio
6.24
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
0.33
vs 25 benchmark
Current Ratio
Current assets to current liabilities
1.44
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
0.31
vs 25 benchmark
ROA
Return on assets percentage
0.09
vs 25 benchmark
ROCE
Return on capital employed
0.25
vs 25 benchmark
How ABNB Stacks Against Its Sector Peers
| Metric | ABNB Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 31.57 | 23.70 | Worse (Expensive) |
| ROE | 31.24% | 1185.00% | Weak |
| Net Margin | 19.90% | 2505.00% | Weak |
| Debt/Equity | 0.33 | 0.77 | Strong (Low Leverage) |
| Current Ratio | 1.44 | 2.86 | Neutral |
| ROA | 9.38% | -8133.00% (disorted) | Weak |
ABNB outperforms its industry in 1 out of 6 key metrics, but lagging in P/E Ratio.
Historical Growth Performance
5-Year Growth Trajectory
This section reviews Airbnb, Inc.'s 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.
Revenue CAGR
251.17%
Industry Style: Cyclical, Growth, Discretionary
High GrowthEPS CAGR
153.08%
Industry Style: Cyclical, Growth, Discretionary
High GrowthFCF CAGR
815.00%
Industry Style: Cyclical, Growth, Discretionary
High Growth