Is Despegar.com Corp. overvalued or undervalued?

Jun 25 2025 08:45 AM IST
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As of October 5, 2023, Despegar.com Corp. is considered undervalued with a P/E ratio of 15.2, a P/S ratio of 1.8, and an ROE of 12.5%, trading at a discount compared to peers like Expedia and Booking Holdings, while also outperforming the Sensex.
As of 5 October 2023, Despegar.com Corp. has moved from fair to attractive based on its recent performance and valuation metrics. The company is currently considered undervalued. Key ratios include a price-to-earnings (P/E) ratio of 15.2, a price-to-sales (P/S) ratio of 1.8, and a return on equity (ROE) of 12.5%.

In comparison to its peers, Expedia Group has a P/E ratio of 20.1, while Booking Holdings stands at 18.5, indicating that Despegar.com is trading at a discount relative to these competitors. Additionally, Despegar.com has outperformed the Sensex in recent months, reinforcing the notion of its undervaluation in the market.
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