Should you buy Airbnb stock? (January 2024)

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Airbnb stock analysis. Ticker: $ABNB

Airbnb stock is up 53% over the past year, but its still below its first ever day of trading. At the current price, the company has a market cap of 87 billion dollars. It’s got 11 billion of cash and investments on its balance sheet and 2 billion of debt which means the enterprise value is 78 billion.

Over the last 12 months, Airbnb has produced 9.6 billion of revenue, 5.5 billion of net income and 4.2 billion of free cash flow. That means Airbnb stock is trading at 8 times revenue, 16 times earnings and 19 times free cash flow.

However, last quarter’s net income was inflated by a one-time tax benefit of $2.8 billion dollars. Account for that benefit and net income is really 2.7 billion which means the stock is really valued at 32 times earnings.

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