What Can We Learn From Trip.com Group Limited(TCOM)’s Valuation Ratios?

Trip.com Group Limited (NASDAQ:TCOM) trading with a subtraction of -$0.03 to $32.17 on Thursday, a downside of -0.09 percent. An average of 2,558,170 shares of common stock have been traded in the last five days. There was a gain of $0.57 in the past week, and it reached a new high 18 times over the past 12 months. The last 20 days have seen an average of 3,607,782 shares traded, while the 50-day average volume stands at 4,553,699.

TCOM stock has increased by 13.38% in the last month. The company shares reached their 1-month lowest point of $26.92 on 09/20/21. With the stock rallying to its 52-week high on 03/17/21, shares of the company touched a low of $23.61 and a high of $45.19 in 52 weeks. It has reached a new high 15 times so far this year and lost -4.54% or -$1.55 in price. In spite of this, the price is down -28.81% from the 52-week high.


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Valuation Metrics

Trip.com Group Limited (TCOM) has a trailing price-to-earnings (P/E) ratio of 34.51, which compares with the 21.70 for the broader industry and 31.28 for the sector. In the last five years, Trip.com Group Limited’s PE ratio has ranged between 2923.66 and 13.12. The stock’s beta is 1.25. Other valuation ratios to consider include the trailing price-to-sales (P/S) ratio at 6.48, the price-to-book (PB) ratio at 1.19.

The quick ratio of Trip.com Group Limited for the recent quarter was 1.10, and the current ratio was 1.10, indicating that the company is able to meet its debt obligations. Further, the company has a long term debt to equity ratio of 0.21 and a total debt to equity ratio of 0.58 for the recent quarter. On the profitability front, the trailing 12-month gross margin is 79.50% against a 5-year average of 79.0%. Trip.com Group Limited’s EBITDA margin is 0.78%, while its operating margin for the same period stands at 1.50%. Its gross profit as reported stood at $2.19 billion compared to revenue of $2.81 billion.

For investors, determining the potential profitability of the investment also depends on the performance of the company’s management. In the past 12 months, Trip.com Group Limited’s return on assets was 1.90%, compared to 0.6% over the last five years. In the past year, the return on investment has been -1.70%, and the 5-year average is 0.7%. Meanwhile, the return on equity (ROE) for the past 12 months has been 3.60% and the 5-year average holds at 1.2%. For the broader industry, ROE averaged 9.95 over the past year.

Technical Picture

From a technical analysis perspective, let’s take a brief look at Trip.com Group Limited (TCOM) price momentum. RSI 9-day as of the close on 13 October was 68.71%, suggesting the stock is Neutral, with historical volatility in this time frame at 24.89%.

As of today, TCOM’s price is $31.90 +1.80% or $0.57 from its 5-day moving average. TCOM is currently trading +12.48% higher than its 20-day SMA and -18.20% lower than its 100-day SMA. However, the stock’s current price level is +33.09% above the SMA50 and +0.47% above the SMA200.

The stochastic %K and %D were 87.41% and 85.45%, respectively, and the average true range (ATR) was 1.03. With the 14-day stochastic at 89.33% and the average true range at 1.10, the RSI (14) stands at 64.06%. The stock has reached 0.46 on the 9-day MACD Oscillator while the 14-day reading was at 0.91.

Analyst Ratings

Morgan Stanley upgraded Trip.com Group Limited (NASDAQ: TCOM) to a an Overweight rating in its most recent analyst report. Previously, the stock was rated as a an Equal-weight.The consensus rating for Trip.com Group Limited (TCOM) among analysts is Overweight. According to current brokerage recommendations, 0 brokerage firms advise that investors sell TCOM, while 10 suggest investors hold. There are 1 analyst who rate the stock as underweight. The stock is rated overweight by 5 analysts, while 19 others rate it as a “buy”.

What is TCOM’s price target for the next 12 months?

Analysts predict a range of price targets between $180.97 and $297.36, with a median target of $239.18. Taking a look at these predictions, the average price target given by analysts for Trip.com Group Limited (TCOM) stock is $236.96.

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