Intrinsic value of Priceline Group - PCLN

Previous Close

$1,949.90

  Intrinsic Value

$2,324

stock screener

  Rating & Target

hold

+19%

Previous close

$1,949.90

 
Intrinsic value

$2,324

 
Up/down potential

+19%

 
Rating

hold

*Intrinsic value change (in %) minus stock price change (in %) in the past 12 months.

We calculate the intrinsic value of PCLN stock by summing up the current values of future distributable cash flows generated by the company and dividing the sum by the number of outstanding shares. As such, the intrinsic value calculation depends entirely on projections. The more accurate your projections of the company's performance are - the more reliable is the intrinsic value calculation result. Please make sure to check the stock valuation input data below and adjust it if necessary. The quality of the output (intrinsic valuation result) is only as good as the quality of the input. See also DISCLAIMERS.

STOCK VALUATION INPUT DATA

Initial revenue growth rate, %
Terminal revenue growth rate, %
Revenue decline factor
Initial discount rate, %
Discount rate multiplier
Shares outstanding, mln

 

FINANCIAL STATEMENTS FORECAST and PRESENT VALUE CALCULATION

Fiscal year
2016(a)
   2017
   2018
   2019
   2020
   2021
   2022
   2023
   2024
   2025
   2026
   2027
   2028
   2029
   2030
   2031
   2032
   2033
   2034
   2035
   2036
   2037
   2038
   2039
   2040
   2041
   2042
   2043
   2044
   2045
   2046

INCOME STATEMENT

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Revenue growth rate, %
  16.47
  20.10
  18.59
  17.23
  16.01
  14.91
  13.92
  13.02
  12.22
  11.50
  10.85
  10.27
  9.74
  9.26
  8.84
  8.45
  8.11
  7.80
  7.52
  7.27
  7.04
  6.84
  6.65
  6.49
  6.34
  6.20
  6.08
  5.98
  5.88
  5.79
  5.71
Revenue, $m
  10,743
  12,902
  15,301
  17,937
  20,809
  23,911
  27,238
  30,786
  34,549
  38,522
  42,702
  47,085
  51,670
  56,457
  61,447
  66,642
  72,046
  77,664
  83,503
  89,571
  95,877
  102,431
  109,244
  116,331
  123,705
  131,380
  139,373
  147,701
  156,383
  165,438
  174,887
Variable operating expenses, $m
 
  8,300
  9,798
  11,445
  13,239
  15,176
  17,255
  19,471
  21,822
  24,304
  26,915
  29,413
  32,278
  35,268
  38,385
  41,631
  45,006
  48,516
  52,164
  55,954
  59,893
  63,987
  68,244
  72,671
  77,277
  82,071
  87,065
  92,267
  97,691
  103,347
  109,250
Fixed operating expenses, $m
 
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
Total operating expenses, $m
  7,900
  8,300
  9,798
  11,445
  13,239
  15,176
  17,255
  19,471
  21,822
  24,304
  26,915
  29,413
  32,278
  35,268
  38,385
  41,631
  45,006
  48,516
  52,164
  55,954
  59,893
  63,987
  68,244
  72,671
  77,277
  82,071
  87,065
  92,267
  97,691
  103,347
  109,250
Operating income, $m
  2,843
  4,603
  5,503
  6,492
  7,570
  8,734
  9,983
  11,315
  12,727
  14,218
  15,787
  17,672
  19,392
  21,189
  23,062
  25,012
  27,040
  29,148
  31,340
  33,617
  35,984
  38,443
  41,001
  43,661
  46,428
  49,308
  52,308
  55,434
  58,693
  62,091
  65,637
EBITDA, $m
  3,152
  5,011
  5,942
  6,966
  8,081
  9,286
  10,578
  11,956
  13,417
  14,960
  16,583
  18,286
  20,066
  21,925
  23,863
  25,881
  27,979
  30,161
  32,429
  34,785
  37,234
  39,779
  42,425
  45,178
  48,041
  51,022
  54,126
  57,360
  60,732
  64,249
  67,918
Interest expense (income), $m
  126
  217
  281
  351
  429
  514
  605
  703
  808
  919
  1,036
  1,159
  1,288
  1,423
  1,564
  1,712
  1,865
  2,024
  2,190
  2,362
  2,541
  2,727
  2,920
  3,121
  3,330
  3,547
  3,773
  4,009
  4,254
  4,510
  4,777
Earnings before tax, $m
  2,713
  4,386
  5,222
  6,141
  7,141
  8,221
  9,378
  10,612
  11,919
  13,299
  14,751
  16,513
  18,104
  19,766
  21,497
  23,300
  25,175
  27,124
  29,150
  31,255
  33,443
  35,717
  38,081
  40,540
  43,098
  45,762
  48,535
  51,425
  54,438
  57,581
  60,860
Tax expense, $m
  578
  1,184
  1,410
  1,658
  1,928
  2,220
  2,532
  2,865
  3,218
  3,591
  3,983
  4,458
  4,888
  5,337
  5,804
  6,291
  6,797
  7,324
  7,871
  8,439
  9,030
  9,644
  10,282
  10,946
  11,637
  12,356
  13,105
  13,885
  14,698
  15,547
  16,432
Net income, $m
  2,135
  3,202
  3,812
  4,483
  5,213
  6,001
  6,846
  7,746
  8,701
  9,709
  10,768
  12,054
  13,216
  14,429
  15,693
  17,009
  18,378
  19,801
  21,280
  22,816
  24,413
  26,073
  27,799
  29,594
  31,462
  33,406
  35,431
  37,541
  39,740
  42,034
  44,428

BALANCE SHEET

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Cash and short-term investments, $m
  4,300
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
Total assets, $m
  19,839
  18,672
  22,143
  25,959
  30,114
  34,603
  39,419
  44,553
  49,998
  55,748
  61,797
  68,140
  74,776
  81,704
  88,925
  96,443
  104,264
  112,394
  120,844
  129,625
  138,751
  148,235
  158,096
  168,352
  179,023
  190,130
  201,698
  213,750
  226,315
  239,419
  253,093
Adjusted assets (=assets-cash), $m
  15,539
  18,672
  22,143
  25,959
  30,114
  34,603
  39,419
  44,553
  49,998
  55,748
  61,797
  68,140
  74,776
  81,704
  88,925
  96,443
  104,264
  112,394
  120,844
  129,625
  138,751
  148,235
  158,096
  168,352
  179,023
  190,130
  201,698
  213,750
  226,315
  239,419
  253,093
Revenue / Adjusted assets
  0.691
  0.691
  0.691
  0.691
  0.691
  0.691
  0.691
  0.691
  0.691
  0.691
  0.691
  0.691
  0.691
  0.691
  0.691
  0.691
  0.691
  0.691
  0.691
  0.691
  0.691
  0.691
  0.691
  0.691
  0.691
  0.691
  0.691
  0.691
  0.691
  0.691
  0.691
Average production assets, $m
  2,392
  2,877
  3,412
  4,000
  4,640
  5,332
  6,074
  6,865
  7,704
  8,590
  9,522
  10,500
  11,522
  12,590
  13,703
  14,861
  16,066
  17,319
  18,621
  19,974
  21,380
  22,842
  24,362
  25,942
  27,586
  29,298
  31,080
  32,937
  34,874
  36,893
  39,000
Working capital, $m
  2,543
  -942
  -1,117
  -1,309
  -1,519
  -1,745
  -1,988
  -2,247
  -2,522
  -2,812
  -3,117
  -3,437
  -3,772
  -4,121
  -4,486
  -4,865
  -5,259
  -5,669
  -6,096
  -6,539
  -6,999
  -7,477
  -7,975
  -8,492
  -9,030
  -9,591
  -10,174
  -10,782
  -11,416
  -12,077
  -12,767
Total debt, $m
  7,167
  8,015
  10,035
  12,256
  14,674
  17,287
  20,090
  23,078
  26,247
  29,593
  33,114
  36,806
  40,668
  44,700
  48,902
  53,278
  57,829
  62,561
  67,479
  72,590
  77,901
  83,421
  89,160
  95,129
  101,339
  107,804
  114,536
  121,551
  128,863
  136,490
  144,448
Total liabilities, $m
  10,019
  10,867
  12,887
  15,108
  17,526
  20,139
  22,942
  25,930
  29,099
  32,445
  35,966
  39,658
  43,520
  47,552
  51,754
  56,130
  60,681
  65,413
  70,331
  75,442
  80,753
  86,273
  92,012
  97,981
  104,191
  110,656
  117,388
  124,403
  131,715
  139,342
  147,300
Total equity, $m
  9,820
  7,805
  9,256
  10,851
  12,588
  14,464
  16,477
  18,623
  20,899
  23,303
  25,831
  28,483
  31,256
  34,152
  37,171
  40,313
  43,582
  46,981
  50,513
  54,183
  57,998
  61,962
  66,084
  70,371
  74,831
  79,474
  84,310
  89,348
  94,600
  100,077
  105,793
Total liabilities and equity, $m
  19,839
  18,672
  22,143
  25,959
  30,114
  34,603
  39,419
  44,553
  49,998
  55,748
  61,797
  68,141
  74,776
  81,704
  88,925
  96,443
  104,263
  112,394
  120,844
  129,625
  138,751
  148,235
  158,096
  168,352
  179,022
  190,130
  201,698
  213,751
  226,315
  239,419
  253,093
Debt-to-equity ratio
  0.730
  1.030
  1.080
  1.130
  1.170
  1.200
  1.220
  1.240
  1.260
  1.270
  1.280
  1.290
  1.300
  1.310
  1.320
  1.320
  1.330
  1.330
  1.340
  1.340
  1.340
  1.350
  1.350
  1.350
  1.350
  1.360
  1.360
  1.360
  1.360
  1.360
  1.370
Adjusted equity ratio
  0.355
  0.418
  0.418
  0.418
  0.418
  0.418
  0.418
  0.418
  0.418
  0.418
  0.418
  0.418
  0.418
  0.418
  0.418
  0.418
  0.418
  0.418
  0.418
  0.418
  0.418
  0.418
  0.418
  0.418
  0.418
  0.418
  0.418
  0.418
  0.418
  0.418
  0.418

CASH FLOW

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Net income, $m
  2,135
  3,202
  3,812
  4,483
  5,213
  6,001
  6,846
  7,746
  8,701
  9,709
  10,768
  12,054
  13,216
  14,429
  15,693
  17,009
  18,378
  19,801
  21,280
  22,816
  24,413
  26,073
  27,799
  29,594
  31,462
  33,406
  35,431
  37,541
  39,740
  42,034
  44,428
Depreciation, amort., depletion, $m
  309
  408
  439
  474
  511
  552
  595
  641
  690
  742
  797
  614
  674
  736
  801
  869
  940
  1,013
  1,089
  1,168
  1,250
  1,336
  1,425
  1,517
  1,613
  1,713
  1,818
  1,926
  2,039
  2,157
  2,281
Funds from operations, $m
  4,141
  3,610
  4,252
  4,957
  5,724
  6,553
  7,441
  8,388
  9,391
  10,451
  11,565
  12,668
  13,890
  15,165
  16,494
  17,878
  19,317
  20,814
  22,369
  23,984
  25,664
  27,409
  29,224
  31,111
  33,075
  35,119
  37,248
  39,467
  41,779
  44,191
  46,709
Change in working capital, $m
  216
  -158
  -175
  -192
  -210
  -226
  -243
  -259
  -275
  -290
  -305
  -320
  -335
  -349
  -364
  -379
  -394
  -410
  -426
  -443
  -460
  -478
  -497
  -517
  -538
  -560
  -584
  -608
  -634
  -661
  -690
Cash from operations, $m
  3,925
  3,767
  4,427
  5,149
  5,934
  6,779
  7,684
  8,647
  9,666
  10,741
  11,870
  12,988
  14,225
  15,515
  16,859
  18,257
  19,712
  21,224
  22,795
  24,427
  26,124
  27,888
  29,721
  31,629
  33,613
  35,680
  37,832
  40,075
  42,413
  44,853
  47,398
Maintenance CAPEX, $m
  0
  -140
  -168
  -200
  -234
  -271
  -312
  -355
  -401
  -451
  -502
  -557
  -614
  -674
  -736
  -801
  -869
  -940
  -1,013
  -1,089
  -1,168
  -1,250
  -1,336
  -1,425
  -1,517
  -1,613
  -1,713
  -1,818
  -1,926
  -2,039
  -2,157
New CAPEX, $m
  -268
  -485
  -535
  -588
  -640
  -692
  -742
  -791
  -839
  -886
  -932
  -977
  -1,023
  -1,068
  -1,113
  -1,158
  -1,205
  -1,253
  -1,302
  -1,353
  -1,406
  -1,462
  -1,520
  -1,580
  -1,644
  -1,712
  -1,782
  -1,857
  -1,936
  -2,019
  -2,107
Cash from investing activities, $m
  -3,333
  -625
  -703
  -788
  -874
  -963
  -1,054
  -1,146
  -1,240
  -1,337
  -1,434
  -1,534
  -1,637
  -1,742
  -1,849
  -1,959
  -2,074
  -2,193
  -2,315
  -2,442
  -2,574
  -2,712
  -2,856
  -3,005
  -3,161
  -3,325
  -3,495
  -3,675
  -3,862
  -4,058
  -4,264
Free cash flow, $m
  592
  3,142
  3,724
  4,362
  5,059
  5,816
  6,630
  7,500
  8,425
  9,404
  10,435
  11,454
  12,588
  13,773
  15,010
  16,298
  17,638
  19,031
  20,480
  21,985
  23,550
  25,176
  26,866
  28,624
  30,452
  32,355
  34,336
  36,400
  38,551
  40,794
  43,134
Issuance/(repayment) of debt, $m
  995
  1,816
  2,020
  2,221
  2,418
  2,613
  2,803
  2,988
  3,169
  3,346
  3,520
  3,692
  3,862
  4,032
  4,203
  4,376
  4,552
  4,732
  4,918
  5,111
  5,311
  5,520
  5,739
  5,969
  6,210
  6,465
  6,732
  7,015
  7,312
  7,627
  7,958
Issuance/(repurchase) of shares, $m
  -998
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
Cash from financing (excl. dividends), $m  
  58
  1,816
  2,020
  2,221
  2,418
  2,613
  2,803
  2,988
  3,169
  3,346
  3,520
  3,692
  3,862
  4,032
  4,203
  4,376
  4,552
  4,732
  4,918
  5,111
  5,311
  5,520
  5,739
  5,969
  6,210
  6,465
  6,732
  7,015
  7,312
  7,627
  7,958
Total cash flow (excl. dividends), $m
  604
  4,958
  5,744
  6,582
  7,478
  8,429
  9,433
  10,488
  11,595
  12,750
  13,956
  15,146
  16,450
  17,805
  19,212
  20,673
  22,189
  23,763
  25,398
  27,096
  28,861
  30,696
  32,605
  34,592
  36,662
  38,819
  41,068
  43,415
  45,863
  48,420
  51,092
Retained Cash Flow (-), $m
  -1,025
  -1,317
  -1,451
  -1,595
  -1,737
  -1,876
  -2,013
  -2,146
  -2,276
  -2,403
  -2,528
  -2,652
  -2,774
  -2,896
  -3,018
  -3,143
  -3,269
  -3,399
  -3,532
  -3,670
  -3,814
  -3,965
  -4,122
  -4,287
  -4,460
  -4,643
  -4,835
  -5,038
  -5,252
  -5,478
  -5,716
Prev. year cash balance distribution, $m
 
  3,332
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
Cash flow adjustment, $m
 
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
Cash available for distribution, $m
 
  6,973
  4,293
  4,987
  5,741
  6,552
  7,420
  8,342
  9,318
  10,347
  11,427
  12,494
  13,676
  14,910
  16,194
  17,530
  18,920
  20,365
  21,866
  23,425
  25,046
  26,731
  28,483
  30,305
  32,202
  34,176
  36,233
  38,377
  40,611
  42,943
  45,376
Discount rate, %
 
  4.30
  4.52
  4.74
  4.98
  5.23
  5.49
  5.76
  6.05
  6.35
  6.67
  7.00
  7.35
  7.72
  8.11
  8.51
  8.94
  9.39
  9.86
  10.35
  10.87
  11.41
  11.98
  12.58
  13.21
  13.87
  14.56
  15.29
  16.05
  16.86
  17.70
PV of cash for distribution, $m
 
  6,686
  3,930
  4,340
  4,727
  5,079
  5,385
  5,636
  5,824
  5,944
  5,991
  5,933
  5,836
  5,669
  5,437
  5,147
  4,808
  4,431
  4,027
  3,607
  3,183
  2,765
  2,363
  1,986
  1,640
  1,330
  1,057
  824
  628
  469
  342
Current shareholders' claim on cash, %
  100
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0

The Priceline Group Inc. is a provider of travel and restaurant online reservation and related services. The Company, through its online travel companies (OTCs), connects consumers wishing to make travel reservations with providers of travel services across the world. It offers consumers an array of accommodation reservations (including hotels, bed and breakfasts, hostels, apartments, vacation rentals and other properties) through its Booking.com, priceline.com and agoda.com brands. Its other brands include KAYAK, Rentalcars.com and OpenTable, Inc. (OpenTable). As of December 31, 2016, Booking.com offered accommodation reservation services for over 1,115,000 properties in over 220 countries and territories on its various Websites and in over 40 languages, which included over 568,000 vacation rental properties (updated property counts were available on the Booking.com Website).

FINANCIAL RATIOS  of  Priceline Group (PCLN)

Valuation Ratios
P/E Ratio 44.9
Price to Sales 8.9
Price to Book 9.8
Price to Tangible Book
Price to Cash Flow 24.4
Price to Free Cash Flow 26.2
Growth Rates
Sales Growth Rate 16.5%
Sales - 3 Yr. Growth Rate %
EPS Growth Rate %
EPS - 3 Yr. Growth Rate %
Capital Spending Gr. Rate 54%
Cap. Spend. - 3 Yr. Gr. Rate 26.1%
Financial Strength
Quick Ratio 4
Current Ratio 0
LT Debt to Equity 63.1%
Total Debt to Equity 73%
Interest Coverage 23
Management Effectiveness
Return On Assets 12%
Ret/ On Assets - 3 Yr. Avg. 15.8%
Return On Total Capital 13.4%
Ret/ On T. Cap. - 3 Yr. Avg. 18.3%
Return On Equity 22.9%
Return On Equity - 3 Yr. Avg. 27.9%
Asset Turnover 0.6
Profitability Ratios
Gross Margin 96%
Gross Margin - 3 Yr. Avg. 93%
EBITDA Margin 29.3%
EBITDA Margin - 3 Yr. Avg. 34.9%
Operating Margin 26.5%
Oper. Margin - 3 Yr. Avg. 32.7%
Pre-Tax Margin 25.3%
Pre-Tax Margin - 3 Yr. Avg. 31.5%
Net Profit Margin 19.9%
Net Profit Margin - 3 Yr. Avg. 25.4%
Effective Tax Rate 21.3%
Eff/ Tax Rate - 3 Yr. Avg. 19.6%
Payout Ratio 0%

PCLN stock valuation input parameters

Revenue. Company's revenue (or sales) is always the starting point of any cash flow forecast. In the PCLN stock intrinsic value calculation we used $10743 million for the last fiscal year's total revenue generated by Priceline Group. The default revenue input number comes from 2016 income statement of Priceline Group. You may change it if you feel that it should be adjusted for some unusual circumstances that are not expected to be repeated in the future or if you already know (from interim financial statements, for example) that this year's revenue is going to be quite different.

Revenue growth rate. Forecasted future revenue growth rate is the most important input parameter for the intrinsic value calculation. Unlike other input parameters that are reasonably expected to be in line with their historic averages or their historic trends, the revenue growth rate by and large is a wild card: nobody really knows what the company's revenue will be in the future. Of course, the level of unpredictability is different for different industries (utility companies being the most predictable and, thus, less risky).
    We use three input parameters to forecast the revenue growth rate in our PCLN stock valuation model: a) initial revenue growth rate of 20.1% whose default value is the revenue growth rate in the most recent quarter compared to the quarterly revenue a year ago; b) terminal revenue growth rate of 5% whose default value is chosen to be close to the average nominal (i.e. not adjusted for inflation) GDP growth rate; and c) revenue decline factor of 0.9, which stipulates that revenue growth rate in each forecasted year will be equal to the difference of the revenue growth rate in the preceding year and the terminal revenue growth rate multiplied by this revenue decline factor (with the passage of time the revenue growth rate will be approaching the terminal revenue growth rate, but not quite reaching it - though the difference could be infinitesimally small).
    At the revenue decline factor of 1, the future revenue growth rate is forecasted to be constant and equal to the initial revenue growth rate. The smaller the revenue decline factor, the faster the revenue growth rate will approach the terminal revenue growth.

Discount rate. The discount rate is used for determining the present value of future cash flows: future cash flows are "discounted" as at normal conditions (that translate into positive expected return on investment) one dollar today is worth more than the same dollar in the future. Unlike all other valuation models, we use variable discount rate, i.e. it increases for each consecutive year. This is done to account for higher risk of cash flows coming in further in the future.
    The initial discount rate of 4.3%, whose default value for PCLN is calculated based on our internal credit rating of Priceline Group, is applied to the cash flow expected to be received a year from now (well, actually, to be precise, in the financial year following the base year - the last year for which we have financial statements). For each consecutive year the discount rate is multiplied by the discount rate multiplier of 1.05, e.i. each year it increases by 5%. Feel free to change this number to correspond to your level of risk assessment of Priceline Group.
    By the way, it is easy to set the discount rate to be constant (this would make comparison with other valuation models easier): just set the discount rate multiplier equal to 1 and chose the magnitude of the initial discount rate to your liking.

Variable cost ratio is the ratio of variable costs (i.e. costs that fluctuate with fluctuation of the volume of production) to the revenue expressed as a percentage. In the calculation of intrinsic value of PCLN stock the variable cost ratio is equal to 64.7%.

Fixed operating expenses is just that - expenses that are not dependant on the volume of production. They are set to $0 million in the base year in the intrinsic value calculation for PCLN stock. These expenses increase with the level of inflation in subsequent years.

Interest rate on debt is the average all-in rate of interest paid by the company on its debt. It is set at 3.5% for Priceline Group.

Corporate tax rate of 27% is the nominal tax rate for Priceline Group. In reality, companies find ways to pay much less taxes than that or not to pay them at all.

Cash flow adjustment could be used for any adjustment the investor deems necessary. Most commonly we use this field to account for stock options-related effects in excess of what is reported on the company's income statement. The cash flow adjustment is expressed as a percentage of the revenue, and in the current valuation of the PCLN stock is equal to 0%.

Production assets are the company's assets used for manufacturing products or provision of services. In the valuation model input table they are expressed as a percentage of revenue and for PCLN are equal to 22.3%.

Life of production assets of 17.1 years is the average useful life of capital assets used in Priceline Group operations. It is used to calculate yearly capital expenditures needed to keep these assets in good order - we call it the maintenance CAPEX.

Working capital is the difference between the company's current assets and liabilities. In the model we use the ratio of working capital to revenue, which for PCLN is equal to -7.3%. A negative number means that the company is apt at using financial resources of its suppliers and customers; a large positive number, on the other hand, means that it either provides in-kind financing to others or is not good at managing its inventories.

Book value of equity - $9820 million for Priceline Group - is used in calculation of the "floor" for intrinsic valuation based on the discounted cash flow (DCF) method. Even if the prospects are very bad for a company, its assets could always be sold now for their current fair market value.

Shares outstanding of 49.8 million for Priceline Group is needed to calculate the intrinsic value of one share.

Market capitalization is used here only for reference purposes and as a quick check that the share price and the number of shares outstanding numbers are correct - something especially to be cognizant about at stock splits. So, the market capitalization of Priceline Group at the current share price and the inputted number of shares is $97.1 billion.

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COMPANY NEWS

▶ Why Trivago N.V. Stock Lost 42% Last Year   [Jan-16-18 04:17PM  Motley Fool]
▶ David Rolfe Comments on Priceline   [Jan-12-18 05:54PM  GuruFocus.com]
▶ Bill Nygren Comments on Priceline Group   [05:16PM  GuruFocus.com]
▶ Ctrip and OpenTable Announce Partnership   [Jan-10-18 08:30AM  PR Newswire]
▶ Bill Nygren"s Oakmark Fund: Fourth Quarter 2017 Commentary   [Jan-08-18 05:39PM  GuruFocus.com]
▶ How to Invest in Travel Stocks   [Jan-06-18 06:31PM  Motley Fool]
▶ 3 High-Risk, High-Reward Naked Puts   [Jan-04-18 09:07AM  InvestorPlace]
▶ Could Priceline Group Really Be a Value Stock?   [Jan-02-18 01:38PM  Motley Fool]
▶ Company News For January 2, 2018   [09:50AM  Zacks]
▶ Why the Bulls Are Wrong About TripAdvisor Inc Stock   [Dec-29-17 09:14PM  Motley Fool]
▶ Priceline.com And IBM Settle Patent Lawsuits   [Dec-28-17 05:51PM  PR Newswire]
▶ Priceline & eBay: We Have Your Winners   [Dec-22-17 11:33AM  Barrons.com]
▶ Online Travel Agencies: Is the Worst Over?   [Dec-21-17 10:24AM  Barrons.com]
▶ JP Morgan's top tech picks for 2018   [11:03AM  CNBC Videos]
▶ Is the Price Right for Priceline?   [10:48AM  GuruFocus.com]
▶ Facebook, Priceline, & Amazon: 2018s Best Tech Stocks?   [Dec-18-17 11:42AM  Barrons.com]
▶ Is Trivago Stock Finally Ready to Take Off?   [Dec-08-17 12:09PM  Motley Fool]
▶ Delta's Gain Is Priceline's Pain   [10:36AM  Barrons.com]
▶ 5 Stocks Hedge Funds Are Crazy About   [07:58AM  Insider Monkey]
▶ A Familiar ETF For The E-Commerce Boom   [Dec-04-17 08:46AM  Benzinga]
▶ Is it Time to Get Greedy With Priceline Group Stock?   [Dec-02-17 12:00PM  Motley Fool]
▶ 4 Stocks that Turned $10,000 into More Than $200,000   [Nov-29-17 09:02PM  Motley Fool]
▶ The CFPB needs to get out of Wall Street's way: NYSE trader   [Nov-27-17 01:43PM  Yahoo Finance Video]
▶ Will Priceline Group Split Its Stock in 2018?   [Nov-22-17 07:29PM  Motley Fool]
▶ 3 Reasons To Be Bearish On Yelp Inc Stock   [11:17AM  InvestorPlace]
▶ TripAdvisor Valuation: What Is Priced In?   [07:30AM  Market Realist]
▶ Revenue Weakness Impacts TripAdvisors Profitability   [Nov-15-17 02:30PM  Market Realist]
▶ Despegar.com Has a Lot to Prove on Thursday   [Nov-14-17 01:36PM  Motley Fool]
Financial statements of PCLN
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