Buffett Brain · Research note
Score updated 28 Oct 2026
BKNG· Consumer Discretionary
Booking Holdings
Booking Holdings' 50% ROIC and 100% gross margin signal a robust moat in online travel services.
Buffett fit
Strong fit
Owner
100
Durability
98
Management
100
Price
62
Score updated 28 Oct 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.
Owning 100% of Booking Holdings, we'd focus on maintaining its high of 49.9% and leveraging its strong network effects.
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Booking Holdings shows impressive durability with a 5-year EPS CAGR of 29.44%, and it has remained profitable every year.
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Booking Holdings has effectively used its capital, with a yield of 4.58% and a share count reduction of 6.59% annually.
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At a of 22.0 and an yield of 7.66%, the valuation is fair but not a bargain.
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For and against
The strongest points on each side, with the numbers behind them.
In its favor
7- 1 of 49.9% is top-quintile in Consumer Cyclical sector.
- 2 of 100% reflects strong and asset-light model.
- 35-year EPS CAGR of 29.44% indicates robust growth.
- 4Share count reduced by 6.59% annually, enhancing shareholder value.
Concerns
5- 1 of 22.0 suggests limited at current price.
- 2Interest coverage of 5.2 is adequate but not extremely conservative.
- 3Current ratio of 1.33 could be higher for better liquidity buffer.
- 4Valuation score of 62 indicates price may be at the higher end of fair value.
Price history
$150+43.6%· 5-year return
Weekly closing prices. Touch or hover the line for a date.
The business
How the business works
Booking Holdings operates a suite of online travel and reservation services, including Booking.com and Priceline, generating $26.92B in revenue and $5.4B in net income. The company enjoys a 100% due to its asset-light model, with $9.09B in . The unit economics are strong, with at 49.9%, indicating efficient capital use.
How this analysis has moved
The call has held across 6 reviews.
Sep 27, 2026 → Oct 29, 2026
What other investors would say
The same company, judged by three other documented playbooks.
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