Booking Holdings Inc.BKNG Booking Holdings Inc. fair value $134–$245

Booking Holdings is a highly profitable, cash-generative OTA market leader. It leverages a dominant, hard-to-replicate two-sided network effect in global accommodations to maintain superb margins. Capital allocation is exceptional, returning virtually all free cash flowFree cash flowOperating cash flow minus capital expenditures. The cash a business generates after maintaining and growing its asset base — the closest accounting proxy for owner-economics. via massive share buybacks and a newly initiated dividend.

• Two-sided network effect in global
  Two-sided network effect in global accommodations.
• Dominant scale driving lowest customer
  Dominant scale driving lowest customer acquisition costs.
• Cycle upside
  Surging post-pandemic normalization fading into sustained global middle-class expansion and persistent experience-driven discretionary spending.