EXPE
Expedia Group, Inc.
$280.83
Platform & Compounding FCF
85%
Two-stage FCF DCF
Strong
·
Conviction
Undervalued
Trading 57.9% below fair value
You pay
$280.83
Bear
$469.81
Fair
$666.61
Bull
$869.23
Bear
$469.81
+67.3%
7% stage 1 growth, 11% discount
Fair
$666.61
+137.4%
12% stage 1 growth, 11% discount
Bull
$869.23
+209.5%
15% stage 1 growth, 11% discount
Adjust Assumptions
11.9%
11.0%
3.0%
Key Value Driver
FCF growth rate (12% base case)
Terminal Value % of EV
40%
Implied Market Multiple
10.3x
Market is pricing in (growth)
-0.1%
vs 11.8% base
Analyst Consensus (External Reference)
Never blended into the bear/base/bull estimates above.
Average Target (76 analysts)
$344.40
Divergence from AlphaVal
94%
Summary
Using a two-stage FCF DCF with 12% growth decelerating over 15 years, discounted at 11%, the base-case intrinsic value is $666.61 per share.
Warnings
Stock-based employee pay equals 31% of profits. This dilutes existing shareholders, so cash flow alone overstates what owners really earn.
Wall Street's average price target is $344.40 (from 76 analysts). Our estimate is 94% above the consensus -- consider that gap carefully.
Key Risks
- P/E alone misleads — earnings depressed by growth investment
- Cyclical or commodity businesses may be misclassified as platforms
- Terminal value dominance suggests sensitivity to long-run assumptions