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What is the PE ratio of Airbnb?

Published in Stock Valuation 2 mins read

As of December 20, 2024, the PE (Price-to-Earnings) ratio for Airbnb (ABNB) stock is 46.44.

This valuation metric provides insight into how much investors are willing to pay for each dollar of Airbnb's earnings. The current PE ratio is precisely calculated based on the company's financial performance and market valuation. Airbnb's trailing twelve months (TTM) Earnings Per Share (EPS) stands at $2.89. When combined with its stock price of $134.21 per share, this yields the reported PE ratio of 46.44.

It's also notable that Airbnb's current PE ratio reflects a significant change compared to its recent historical performance. It has seen an 80% increase from its average PE ratio over the last four quarters, which was 25.9. This substantial rise can indicate evolving investor sentiment, potentially reflecting increased confidence or higher growth expectations for the company's future earnings.

Key Airbnb PE Ratio Metrics

Here’s a detailed breakdown of the financial metrics contributing to Airbnb's current PE ratio:

Metric Value Date/Period
Current PE Ratio 46.44 As of Dec 20, 2024
Trailing Twelve Months (TTM) EPS $2.89 As of Dec 20, 2024
Stock Price Per Share $134.21 As of Dec 20, 2024
Last 4 Quarters Average PE Ratio 25.9 Prior to Dec 20, 2024
Percentage Increase from Average 80%

Understanding the PE Ratio:
The PE ratio is a fundamental financial metric widely utilized by investors to assess a company's valuation relative to its earnings. A higher PE ratio often suggests that the market expects robust future earnings growth, or that the stock is considered a "growth stock." Conversely, a lower PE ratio might indicate a "value stock" or lower growth expectations. To gain a comprehensive understanding, it's crucial to compare a company's PE ratio within its specific industry and against its own historical averages. For up-to-date market information and detailed financial analysis, investors often refer to leading financial data platforms.