3 models fit TripAdvisor Inc. Common Stock and they partly agree: 2 of 3 land within 15% of the average. The price is above every model.
Two or more of our models back this value.
Large premium(i)
Valued as a cyclical company: P/E comparison, EV/EBITDA comparison, Discounted cash flow, and Graham number.
ACCE opinionTripAdvisor Inc. Common Stock (TRIP)
Fair value (3 models)
$5.66
ACCE price target
$10.00
Rating
Overvalued
Horizon
12 months
Fair value published on 11 Oct 2026, 00:00 CEST; previously $10.50 since 7 Oct 2026, 00:00 CEST.
ACCE price target published on 13 Oct 2026, 00:00 CEST.
Rating published on 21 Oct 2026, 11:06 CEST.
Price used: $9.41 at the close on 23 Oct 2026, 22:00 CEST.
Models: Discounted cash flow, EV/EBITDA comparison, Graham number, and P/E comparison.
Fair value: the average of the applicable valuation models (discounted cash flow, multiples, residual income, dividend discount, shareholder yield), each run on the latest financial statements and the market price shown. Opinion columns (fair value, target, rating) are shown apart from the data. Full methodology: acceinvestments.com/data/how-we-value-stocks
Conflicts of interest: The author holds no personal position in this security. General statement
Produced by ACCE Investments (acceinvestments.com)
Data
Price vs fair value
66.3% above
-39.9% to fair value
ACCE score
37
out of 100
Analysts
31% buy
16 covering
P/E
94.1x
forward 8.8x
1-year return
-41.6%
Dividend yield
0.00%
TripAdvisor Inc. Common Stock in four questions
Plain answers, details below
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Overview
ACCE thesis
TripAdvisor runs the largest travel review and booking-referral platform on the web, monetising hotel, restaurant and attraction traffic mainly through click and booking fees paid by partners such as Booking.com and Expedia. Its moat is a deep base of user-generated reviews and a traffic franchise that still generates a 64.0% gross margin, though that edge has been eroding as revenue fell 7.2%. The near-term catalyst is management's cost discipline: a 9.4% operating margin on a shrinking top line shows the cost base is being cut faster than sales are declining, and a forward P/E of 6.8 against a trailing 93.9 says the market expects earnings to recover sharply from depressed levels. The stock screens cheap on forward earnings but its 37/100 score and negative ROE mean the balance sheet and return profile need checking before any position is considered. Worth a deeper look only if revenue stabilises, since the margin story depends on it.
⚠ Investor warnings · 4 flagsAI-assisted·How I use AI
high
Revenue and earnings shrinking
Revenue is down 7.2% year on year and quarter on quarter by 7.0%, while earnings fell 32.1%. The 25.6% five-year revenue CAGR no longer reflects the trend.
high
Heavy leverage on thin equity
Debt to equity is 1.94 and ROE is -0.2%, so the balance sheet carries significant debt against almost no equity cushion. Net margin of 0.3% leaves little room for error.
high
Score down sharply in 90 days
The ACCE score fell 14 points from 51 to 37 over 90 days, with the momentum component at 17 and quality at 42. Deteriorating fundamentals are being reflected in the rating.
moderate
Elevated short interest
Short interest stands at 38.6%, meaning a large share of the float is betting against the stock. Sharp moves in either direction are likely to be amplified.
AI research notes
AI-assisted·How I use AIWritten Oct 21, 2026 · figures from 2026-06-30 · prices to Oct 23, 2026
Why it could do well
Free cash flow over the last twelve months reached $163M, a 15.0% yield at the current share price.
Forward earnings multiple of 8.9x sits well below the sector median forward P/E of 17.8x.
The diluted share count fell 9.7% last fiscal year, lifting each remaining share's claim on earnings.
Why it could disappoint
Revenue fell 7.2% year over year, a sharp reversal from average annual growth of 25.6% over five years.
Net margin of 0.3% and return on equity of -0.2% mean the business barely earns anything for shareholders.
Debt equals 1.94 times equity, and the latest quarterly earnings missed expectations by 4.2%.
Each chip shows the exact figure and where it comes from. A claim without a source is not published.
Next results
Nov 5, 2026
We update the fair value about 2 days after the results, once the new figures are filed.Add to calendarGoogle
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Valuation
INVESTOR
Where TRIP's valuation models land
Price
$9.41
Model fair value
$5.66
Model range
$4.47 to $6.28
Fair value $5.66
Price $9.41
The price is above the whole model range.
Model
Fair value
Upside
Discounted cash flow
EV/EBITDA comparison
Graham number
P/E comparison
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Quality
INVESTOR
Quality and conviction INVESTOR FEATURE
The full quality picture: a reason under every score, how the scores moved, and the conviction breakdown.
+A plain reason under every score
+Conviction breakdown and growth / value / quality / momentum scores