Equity valuation Airbnb, Inc.

Abstract

This dissertation aims to determine the target fair-value price of Airbnb, a dynamic and fast-growing Online Travel Agency that has established itself as a leader in providing short-term rentals, and that has been a key part of changing consumer trends in what related to tourist accommodation, even benefiting from the devastating effects of the COVID-19 pandemic. To achieve this goal, two different valuation methodologies were used, the first being a Discounted Cash-flow valuation that was performed on three different growth scenarios, the second being a relative valuation using forward-multiples, that was used as a levelling tool to approximate the result to the current peer and industry levels. The valuation was based on a detailed analysis of the company, industry, and global market forces. The valuation resulted in a BUY recommendation with an average target price of USD 153.51, +46.3% of potential upside compared to the trading price at 25th of July 2022 of USD 104.95. Lastly, a comparison was performed between the dissertation and the May 4th, 2022, HSBC Global Research equity report on Airbnb.

Date of Award	21 Oct 2022
Original language	English
Awarding Institution	Universidade Católica Portuguesa
Supervisor	José Carlos Tudela Martins (Supervisor)