What Percentage of Priceline’s Stock Price Can Be Attributed To Growth?

PCLN: Priceline Group logo
PCLN
Priceline Group

In this analysis, we quantify the percentage of Priceline’s stock that can be attributed to growth.

We know that a stock’s valuation can be highly influenced by future expectations of earnings growth. However, in theory, if a company sees no growth opportunities it should distribute all its earnings as dividends to its shareholders. Assuming that a company pays all earnings as dividends for the rest of the period, we can calculate the Present Value of Growth Opportunity (PVGO) of a stock from the formula given below:

PVGO PCLN

Relevant Articles
  1. What’s Next For Copart Stock?
  2. Should You Pick Atkore Stock At $90?
  3. Tesla & Trump: Risks To Consider
  4. Can Streaming Gains Drive Disney Stock 2x?
  5. What’s Next For Gap Stock?
  6. What’s Driving Altria Stock Higher?

 

Notes: For more details about the calculation for Present Value of Growth Opportunity please refer this link.

Have more questions on Priceline? See the links below.

Notes:

1) The purpose of these analyses is to help readers focus on a few important things. We hope such lean communication sparks thinking, and encourages readers to comment and ask questions on the comment section, or email content@trefis.com
2) Figures mentioned are approximate values to help our readers remember the key concepts more intuitively. For precise figures, please refer to our complete analysis for Priceline

See More at Trefis | View Interactive Institutional Research (Powered by Trefis)

Get Trefis Technology