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

+3.56%
Upside
14.82
Market
15.35
Trefis
TRIP: Tripadvisor logo
TRIP
Tripadvisor

In this analysis, we quantify the percentage of TripAdvisor’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 TRIP

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

Have more questions about TripAdvisor? 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 TripAdvisor

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