Shares of Airbnb (ABNB, Financial) fell by 8.66%, closing at $134.61, following the release of its third-quarter earnings report. While revenue and EBITDA exceeded analysts' expectations, the forward guidance for revenue and EBITDA margin did not meet Wall Street's estimates, prompting the stock's decline.
Despite the disappointing guidance, Airbnb reported an increase in bookings, referred to as 'Nights & Experiences Booked,' showing growth in the third quarter that has persisted into the fourth quarter.
Airbnb Inc (ABNB, Financial), listed on the NASDAQ, has a market capitalization of $84.1 billion. The company's GF Value is $169.35, indicating that the stock is currently considered "Modestly Undervalued." For a detailed analysis, view the GF Value of Airbnb.
Airbnb's price-to-earnings (P/E) ratio stands at 18.31, which is relatively low compared to the industry's median P/E ratio of 36.67, suggesting that the stock might be undervalued in terms of earnings potential. The company's price-to-book (P/B) ratio of 10.67 is significantly higher than the industry median of 1.73, indicating a possibly premium valuation relative to the book value.
In terms of financial health, Airbnb scored a strong Altman Z-Score of 3.69, pointing to a lower likelihood of bankruptcy. The Piotroski F-Score of 7 also signifies a healthy financial situation. However, the Beneish M-Score of -1.27 suggests potential earnings manipulation risks.
The stock exhibits a price-to-sales (P/S) ratio of 8.02, which is above the industry median of 1.605, highlighting that investors are paying a premium for each dollar of sales. The company's free cash flow yield is 5.17%, a favorable indicator that suggests Airbnb generates solid cash relative to its market value.
Insider activity reflects a bearish sentiment, with 22 insider selling transactions and no insider purchases in the last three months, amounting to 446,559 shares sold. This insider activity could signal concerns about the stock's near-term prospects.
