Is Expedia Group, Inc. overvalued or undervalued?

As of 8 May 2025, the valuation grade for Expedia Group, Inc. has moved from attractive to fair, indicating a shift in its perceived value. The company appears to be fairly valued based on its current metrics, with a P/E ratio of 42, an EV to EBITDA ratio of 20.19, and a PEG ratio of 3.61. In comparison to peers, Rollins, Inc. is considered very expensive with a P/E of 56.40 and an EV to EBITDA of 35.08, suggesting that Expedia may be a more reasonable investment in its sector.
Despite the recent downgrade in valuation, Expedia has outperformed the S&P 500 over various periods, with a 1-year return of 58.91% compared to the S&P 500's 17.14%. This strong performance relative to the benchmark reinforces the notion that while the stock is fairly valued, it has shown significant growth potential in the market.