Airbnb Net Income vs. Current Valuation
| ABNB Stock | USD 121.35 5.39 4.65% |
Net Income | First Reported 2019-09-30 | Previous Quarter 1.4 B | Current Value 341 M | Quarterly Volatility 1.3 B |
| Current Value | Last Year | Change From Last Year | 10 Year Trend | ||||||
|---|---|---|---|---|---|---|---|---|---|
| Gross Profit Margin | 0.63 | 0.8296 |
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For Airbnb profitability analysis, we use financial ratios and fundamental drivers that measure the ability of Airbnb to generate income relative to revenue, assets, operating costs, and current equity. These fundamental indicators attest to how well Airbnb Inc utilizes its assets to generate profit and value for its shareholders. The profitability module also shows relationships between Airbnb's most relevant fundamental drivers. It provides multiple suggestions of what could affect the performance of Airbnb Inc over time as well as its relative position and ranking within its peers.
Check out Trending Equities. Is Hotels, Resorts & Cruise Lines space expected to grow? Or is there an opportunity to expand the business' product line in the future? Factors like these will boost the valuation of Airbnb. If investors know Airbnb will grow in the future, the company's valuation will be higher. The financial industry is built on trying to define current growth potential and future valuation accurately. Comprehensive Airbnb assessment requires weighing all these inputs, though not all factors influence outcomes equally.
Quarterly Earnings Growth 0.038 | Earnings Share 4.03 | Revenue Per Share | Quarterly Revenue Growth 0.12 | Return On Assets |
Understanding Airbnb Inc requires distinguishing between market price and book value, where the latter reflects Airbnb's accounting equity. The concept of intrinsic value - what Airbnb's is actually worth based on fundamentals - guides informed investors toward better entry and exit points. Investors use various methods to calculate intrinsic value and buy a stock when its market value falls below its intrinsic value. Market sentiment, economic cycles, and investor behavior can push Airbnb's price substantially above or below its fundamental value.
Understanding that Airbnb's value differs from its trading price is crucial, as each reflects different aspects of the company. Evaluating whether Airbnb represents a sound investment requires analyzing earnings trends, revenue growth, technical signals, industry dynamics, and expert forecasts. In contrast, Airbnb's trading price reflects the actual exchange value where willing buyers and sellers reach mutual agreement.
Airbnb Inc Current Valuation vs. Net Income Fundamental Analysis
Comparative valuation techniques use various fundamental indicators to help in determining Airbnb's current stock value. Our valuation model uses many indicators to compare Airbnb value to that of its competitors to determine the firm's financial worth. Airbnb Inc is number one stock in net income category among its peers. It also is the top company in current valuation category among its peers reporting about 25.41 of Current Valuation per Net Income. At present, Airbnb's Net Income is projected to increase significantly based on the last few years of reporting. The reason why the comparable model can be used in almost all circumstances is due to the vast number of multiples that can be utilized, such as the price-to-earnings (P/E), price-to-book (P/B), price-to-sales (P/S), price-to-cash flow (P/CF), and many others. The P/E ratio is the most commonly used of these ratios because it focuses on the Airbnb's earnings, one of the primary drivers of an investment's value.Airbnb's Earnings Breakdown by Geography
Airbnb Current Valuation vs. Net Income
Net income is the profit of a company for the reporting period, which is derived after taking revenues and gains and subtracting all expenses and losses. Net income is one of the most-watched numbers by money managers as well as individual investors.
Airbnb |
| = | 2.51 B |
Because income is reported on the Income Statement of a company and is measured in dollars some investors prefer to use Profit Margin, which measures income as a percentage of sales.
Enterprise Value is a firm valuation proxy that approximates the current market value of a company. It is typically used to determine the takeover or merger price of a firm. Unlike Market Cap, this measure takes into account the entire liquid asset, outstanding debt, and exotic equity instruments that the company has on its balance sheet. When a takeover occurs, the parent company will have to assume the target company's liabilities but will take possession of all cash and cash equivalents.
Airbnb |
| = | 63.8 B |
Enterprise Value can be a useful tool to compare companies with different capital structures. Long term liability and current cash or cash equivalents can have a huge impact on market valuation of a given company.
Airbnb Current Valuation vs Competition
Airbnb Inc is the top company in current valuation category among its peers. After adjusting for long-term liabilities, total market size of Consumer Discretionary industry is presently estimated at about 78.54 Billion. Airbnb totals roughly 63.8 Billion in current valuation claiming about 81% of stocks in Consumer Discretionary industry.
Airbnb Profitability Projections
The most important aspect of a successful company is its ability to generate a profit. For investors in Airbnb, profitability is also one of the essential criteria for including it into their portfolios because, without profit, Airbnb will eventually generate negative long term returns. The profitability progress is the general direction of Airbnb's change in net profit over the period of time. It can combine multiple indicators of Airbnb, where stable trends show no significant progress. An accelerating trend is seen as positive, while a decreasing one is unfavorable. A rising trend means that profits are rising, and operational efficiency may be rising as well. A decreasing trend is a sign of poor performance and may indicate upcoming losses.
| Last Reported | Projected for Next Year | ||
| Accumulated Other Comprehensive Income | -62 M | -58.9 M | |
| Net Interest Income | 705 M | 740.2 M | |
| Interest Income | 705 M | 740.2 M | |
| Operating Income | 2.5 B | 2.7 B | |
| Net Income From Continuing Ops | 2.5 B | 2.6 B | |
| Income Before Tax | 3.1 B | 3.3 B | |
| Total Other Income Expense Net | 593 M | 622.6 M | |
| Net Income Applicable To Common Shares | 2.2 B | 2.3 B | |
| Net Income | 2.5 B | 2.6 B | |
| Income Tax Expense | 626 M | 657.3 M | |
| Non Operating Income Net Other | 242.7 M | 254.8 M | |
| Change To Netincome | 1.3 B | 1.3 B | |
| Net Income Per Share | 4.10 | 4.30 | |
| Income Quality | 1.85 | 1.94 | |
| Net Income Per E B T | 0.80 | 0.84 |
Airbnb Profitability Driver Comparison
Profitability drivers are factors that can directly affect your investment outlook on Airbnb. Investors often realize that things won't turn out the way they predict. There are maybe way too many unforeseen events and contingencies during the holding period of Airbnb position where the market behavior may be hard to predict, tax policy changes, gold or oil price hikes, calamities change, and many others. The question is, are you prepared for these unexpected events? Although some of these situations are obviously beyond your control, you can still follow the important profit indicators to know where you should focus on when things like this occur. Below are some of the Airbnb's important profitability drivers and their relationship over time.
Airbnb Earnings per Share Projection vs Actual
Use Airbnb in pair-trading
One of the main advantages of trading using pair correlations is that every trade hedges away some risk. Because there are two separate transactions required, even if Airbnb position performs unexpectedly, the other equity can make up some of the losses. Pair trading also minimizes risk from directional movements in the market. For example, if an entire industry or sector drops because of unexpected headlines, the short position in Airbnb will appreciate offsetting losses from the drop in the long position's value.Airbnb Pair Trading
Airbnb Inc Pair Trading Analysis
The ability to find closely correlated positions to Airbnb could be a great tool in your tax-loss harvesting strategies, allowing investors a quick way to find a similar-enough asset to replace Airbnb when you sell it. If you don't do this, your portfolio allocation will be skewed against your target asset allocation. So, investors can't just sell and buy back Airbnb - that would be a violation of the tax code under the "wash sale" rule, and this is why you need to find a similar enough asset and use the proceeds from selling Airbnb Inc to buy it.
The correlation of Airbnb is a statistical measure of how it moves in relation to other instruments. This measure is expressed in what is known as the correlation coefficient, which ranges between -1 and +1. A perfect positive correlation (i.e., a correlation coefficient of +1) implies that as Airbnb moves, either up or down, the other security will move in the same direction. Alternatively, perfect negative correlation means that if Airbnb Inc moves in either direction, the perfectly negatively correlated security will move in the opposite direction. If the correlation is 0, the equities are not correlated; they are entirely random. A correlation greater than 0.8 is generally described as strong, whereas a correlation less than 0.5 is generally considered weak.
Correlation analysis and pair trading evaluation for Airbnb can also be used as hedging techniques within a particular sector or industry or even over random equities to generate a better risk-adjusted return on your portfolios.Use Investing Themes to Complement your Airbnb position
In addition to having Airbnb in your portfolios, you can quickly add positions using our predefined set of ideas and optimize them against your very unique investing style. A single investing idea is a collection of funds, stocks, ETFs, or cryptocurrencies that are programmatically selected from a pull of investment themes. After you determine your investment opportunity, you can then find an optimal portfolio that will maximize potential returns on the chosen idea or minimize its exposure to market volatility.Did You Try This Idea?
Run Consumer Staples ETFs Thematic Idea Now
Consumer Staples ETFs
ETF themes focus on helping investors to gain exposure to a broad range of assets, diversify, and lower overall costs. The Consumer Staples ETFs theme has 15 constituents at this time.
You can either use a buy-and-hold strategy to lock in the entire theme or actively trade it to take advantage of the short-term price volatility of individual constituents. Macroaxis can help you discover thousands of investment opportunities in different asset classes. In addition, you can partner with us for reliable portfolio optimization as you plan to utilize Consumer Staples ETFs Theme or any other thematic opportunities.
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To fully project Airbnb's future profitability, investors should examine all historical financial statements. These statements provide investors with a comprehensive snapshot of the financial position of Airbnb Inc at a specified time, usually calculated after every quarter, six months, or one year. Three primary documents fall into the category of financial statements. These documents include Airbnb's income statement, its balance sheet, and the statement of cash flows.