Tripadvisor, Inc. logo TRIP - Tripadvisor, Inc.

Price: -- -- | CONSENSUS: Hold DETAILS
STRONG
BUY
0
BUY 13
HOLD 34
SELL 9
STRONG
SELL
0
| PRICE TARGET: $14.10 DETAILS
HIGH: $20.00
LOW: $9.00
MEDIAN: $15.50
CONSENSUS: $14.10
UPSIDE: 0.86%
AlphaVal

AlphaVal

Deterministic, archetype-aware fair value

Platform & Compounding FCF 85% confidence

Primary model: Two-stage FCF DCF

Valuation Signal Overvalued Moderate
Trading 26.9% above fair value
Current Price $13.98
Bear Case $8.93 36.1% downside ($8.93 - $13.98) / $13.98 = -36.1% 4% stage 1 growth, 11% discount
Fair Value $11.01 21.2% downside ($11.01 - $13.98) / $13.98 = -21.2% 6% stage 1 growth, 11% discount
Bull Case $12.85 8.1% downside ($12.85 - $13.98) / $13.98 = -8.1% 8% stage 1 growth, 11% discount

Adjust Assumptions

5.9%
11.0%
3.0%

Key Value Driver

FCF growth rate (6% base case)

Terminal Value % of EV 35%
Implied Market Multiple 22.5x
Market is pricing in (growth) 10.5% vs our 5.9% base

Plain-Language Summary

Our base-case estimate uses a two-stage discounted cash flow model based on free cash flow. We then blend that result with the average analyst price target of $14.10 from 56 analysts, using a 35% weight on analyst consensus. That produces an estimated intrinsic value of $11.01 per share.

Warnings

Stock-based employee pay equals 270% of profits. This dilutes existing shareholders, so cash flow alone overstates what owners really earn.
Wall Street's average price target is $14.10 (from 56 analysts). Our estimate is 34% below 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