Your net income assumption is crazy because ABNB benefited last year from a one-time tax bracket. I think more conservative is a 20-30% NI margin. Then the valuation looks different...
You're entirely right, I already corrected this on other content but forgot to update this investment case. I'll try to do so today, thanks for the reminder!
Although at today's price, even with a 20% margin & less than 10% CAGR growth, we'd have pretty good returns by 2026 with nothing more than Booking's ratios (which isn't growing much faster). fair enough imo.
Your net income assumption is crazy because ABNB benefited last year from a one-time tax bracket. I think more conservative is a 20-30% NI margin. Then the valuation looks different...
You're entirely right, I already corrected this on other content but forgot to update this investment case. I'll try to do so today, thanks for the reminder!
Although at today's price, even with a 20% margin & less than 10% CAGR growth, we'd have pretty good returns by 2026 with nothing more than Booking's ratios (which isn't growing much faster). fair enough imo.
But I will rewrite this part, it needs to!