Expedia Group Inc (EXPE, Financial), a leading player in the Travel & Leisure industry, has seen a significant surge in its stock price over the past three months. The company's stock price has risen by 11.61% over the past quarter, marking a notable increase from $110.22 to its current price. Over the past week alone, the stock has seen an impressive gain of 18.32%. With a market cap of $15.8 billion, Expedia's performance has caught the attention of investors and market analysts alike.
Understanding Expedia's GF Value
The GF Value, defined by GuruFocus.com, calculates a stock's intrinsic value using historical multiples, past performance adjustments, and future business estimates. Currently, Expedia's GF Value stands at $184.85, a slight increase from its past GF Value of $179.55 three months ago. However, the current GF Valuation suggests a 'Possible Value Trap, Think Twice' scenario, indicating that the stock might be overvalued. This valuation remains unchanged from the past GF Valuation three months ago.
Company Overview
Expedia Group Inc is the world's second-largest online travel agency by bookings. The company offers services for lodging, air tickets, rental cars, cruises, in-destination, and other travel-related services. Expedia operates several branded travel booking sites, including Expedia.com, Hotels.com, Travelocity, Orbitz, Wotif, AirAsia, and Vrbo. The company's transaction fees for online bookings account for the bulk of its sales and profits. 
Profitability Analysis
Expedia's Profitability Rank stands at 6/10, indicating a relatively high level of profitability. The company's Operating Margin is 10.24%, better than 60.05% of the companies in the industry. Its ROE and ROA are 44.72% and 3.78% respectively, outperforming a significant number of companies in the sector. The company's ROIC is 3.94%, better than 57.66% of the companies in the industry. Over the past decade, Expedia has maintained profitability for 9 years, outperforming 86.66% of the companies in the industry. 
Growth Prospects
Expedia's Growth Rank is currently at 1/10. The company's 3-Year Revenue Growth Rate per Share is -3.60%, while its 5-Year Revenue Growth Rate per Share is -2.70%. However, the company's future total revenue growth rate estimate stands at 8.14%, indicating potential for growth in the coming years. The company's 3-Year EPS without NRI Growth Rate is -2.50%, but its future EPS without NRI growth rate estimate is a promising 38.40%. 
Major Stock Holders
Ken Fisher (Trades, Portfolio), Larry Robbins (Trades, Portfolio), and Ray Dalio (Trades, Portfolio) are the top three holders of Expedia's stock. Ken Fisher (Trades, Portfolio) holds the largest number of shares, with 1,192,706 shares, accounting for 0.83% of the total shares. Larry Robbins (Trades, Portfolio) holds 383,038 shares, accounting for 0.27% of the total shares. Ray Dalio (Trades, Portfolio) holds 202,272 shares, accounting for 0.14% of the total shares.
Competitive Landscape
Expedia faces stiff competition from other companies in the Travel & Leisure industry. Carnival Corp (CCL, Financial) with a market cap of $16.47 billion, Norwegian Cruise Line Holdings Ltd (NCLH, Financial) with a market cap of $5.98 billion, and Royal Caribbean Group (RCL, Financial) with a market cap of $23.64 billion are some of the company's main competitors.
Conclusion
In conclusion, Expedia Group Inc's stock performance has been impressive over the past quarter, with a significant surge in its stock price. The company's profitability and growth prospects also indicate potential for future growth. However, the current GF Valuation suggests that investors should exercise caution before investing in the stock. Despite facing stiff competition in the industry, Expedia's strong market position and robust business model make it a company to watch in the coming months.
This article, generated by GuruFocus, is designed to provide general insights and is not tailored financial advice. Our commentary is rooted in historical data and analyst projections, utilizing an impartial methodology, and is not intended to serve as specific investment guidance. It does not formulate a recommendation to purchase or divest any stock and does not consider individual investment objectives or financial circumstances. Our objective is to deliver long-term, fundamental data-driven analysis. Be aware that our analysis might not incorporate the most recent, price-sensitive company announcements or qualitative information. GuruFocus holds no position in the stocks mentioned herein.
