Buffett Brain · Research note
Score updated 26 Sept 2026 · analysis from 27 Jul 2026
BKNG· Consumer Discretionary
Booking Holdings
Booking Holdings boasts a 100% gross margin and a 68% ROIC, making it a standout in the travel services sector.
Buffett fit
Strong fit
Owner
98
Durability
97
Management
100
Price
59
Score updated 26 Sept 2026 · analysis from 27 Jul 2026
Buffett's checklist
Each number against Buffett's bar, and where it ranks among Consumer Discretionary stocks in our database.
How much profit the business makes on each dollar invested in it. Higher is better.
What is left of each sale after the cost of making the product. A high number often means pricing power.
The cash the business earns for its owners, compared with the price of the whole company.
How fast sales grew each year over the last five years.
How many years of today's profit you pay for at today's price. Lower means cheaper.
How much the company owes compared with what it owns outright. Lower is safer.
The four pillars
How the business measures up on each of Buffett's four tests.
If I owned 100% of Booking Holdings, I would focus on expanding its market share and enhancing customer loyalty through innovative offerings.
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Booking's durability is reinforced by its consistent profitability over the last five years and a low EPS max decline of only -4.84%.
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Management has demonstrated excellent with a yield of 4.58% and a market cap increase of 2.22 times retained earnings.
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With an yield of 6.91%, the valuation seems reasonable, though not a no-brainer.
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For and against
The strongest points on each side, with the numbers behind them.
In its favor
5- 1100% , indicating strong in the travel services market.
- 2 of 68.24% significantly surpasses the sector top-quintile cutoff of 13.6%.
- 3Revenue CAGR of 25.19% over the last five years demonstrates robust growth.
- 4 of $9.09 billion allows for strategic reinvestment and shareholder returns.
Concerns
5- 1 of 21.8 suggests a high valuation relative to earnings, potentially limiting upside.
- 2Negative P/B ratio of -15.38 indicates significant goodwill, which could be a risk if acquisitions underperform.
- 3Current ratio of 1.06 is slightly above the threshold, indicating potential liquidity concerns.
- 4Interest coverage of 7.8 is healthy, but any increase in debt could strain financial health.
Price history
$150+55.1%· 5-year return
Weekly closing prices. Touch or hover the line for a date.
The business
How the business works
Booking Holdings operates multiple platforms including Booking.com and KAYAK, generating $26.92 billion in revenue. With a 100% , the company's is evident as it capitalizes on its vast network of travel services. This model allows for significant cash flow generation, evidenced by a of $9.09 billion.
How this analysis has moved
The call has held across 6 reviews.
Sep 27, 2026 → Oct 27, 2026
What other investors would say
The same company, judged by three other documented playbooks.
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