Revenue minus cost of goods sold. Graham's ≥40% threshold identifies businesses with durable pricing power. Note: software and financial companies naturally exceed this; retailers and manufacturers rarely reach it due to their cost structures.
Operating Margin7.1%
Profit after operating costs before interest and taxes. A consistent ≥15% operating margin signals a business with real competitive advantages. Capital-intensive industries (airlines, auto, commodities) rarely hit this threshold due to their structural cost base — compare within industry for context.
Net Income Margin-0.2%
Bottom-line profit as a percentage of revenue. The ≥20% target reflects Buffett's preference for highly profitable businesses. Financial engineering (buybacks, tax optimisation) can inflate this temporarily — look for consistency across multiple years rather than a single strong result.
Financial Health
F
Years to Pay Off Debt-784.3 yrs
Total Debt ÷ Net Income. Lower = stronger balance sheet. Important caveat: utilities, telecoms, REITs, and infrastructure companies carry large structural debt by design — their bond-like cash flows service it comfortably at ratios that would alarm Graham. Compare within sector.
Working Capital vs Long-Term Debt-$9.7B
Working Capital minus Long-Term Debt. Negative results are common and expected in capital-return-focused businesses like Apple, Domino's, and McDonald's — where aggressive buybacks and dividends intentionally reduce book equity. This does not indicate financial distress in high-FCF businesses.
Working Capital-$5.2B
Current Assets minus Current Liabilities. Negative working capital can be a deliberate efficiency strategy in businesses that collect cash before paying suppliers (retailers, fast food franchises, subscription businesses). Assess alongside free cash flow generation for full context.
Valuation
F
Price-to-Book47.89x
Market price vs book value per share. Rarely below 1.5x for quality businesses today. Intangible assets (brand, software, patents) don't appear on the balance sheet under accounting rules, making P/B artificially high for asset-light companies like software and consumer brands.
Cash Flow
A
Free Cash Flow$3.7B
Operating cash flow minus capital expenditures. Buffett's most important metric — cash a business actually generates for its owners after maintaining and growing its asset base. Consistently positive FCF is one of the strongest indicators of a durable, well-run business regardless of accounting profits.
Owner Earnings$406M
Net Income + Depreciation & Amortisation − Capital Expenditures. Buffett's preferred measure of a company's true annual earning power — what could theoretically be distributed to owners without impairing the business. More reliable than reported EPS because it accounts for the capital cost of maintaining the business.
About Expedia Group, Inc.
Expedia Group, Inc. operates as an online travel company in the United States and internationally. The company operates through B2C, B2B, and trivago segments. The B2C segment includes Brand Expedia, a full-service online travel brand offers various travel products and services; Hotels.com for lodging accommodations; Vrbo, an online marketplace for the alternative accommodations; and Orbitz, Travelocity, ebookers, and Wotif Group. The B2B segment provides various travel and non-travel companies including airlines, offline travel agents, online retailers, corporate travel management, and financial institutions who leverage its travel technology and tap into its diverse supply to augment their offerings and market Expedia Group rates and availabilities to its travelers. The trivago segment sends referrals to online travel companies and travel service providers from hotel metasearch websites. In addition, it provides brand advertising through online and offline channels, loyalty programs, mobile apps, and search engine marketing, as well as metasearch, social media, direct and personalized traveler communications on its websites, and through direct e-mail communication with its travelers. The company was formerly known as Expedia, Inc. and changed its name to Expedia Group, Inc. in March 2018. Expedia Group, Inc. was founded in 1996 and is headquartered in Seattle, Washington.
Expedia Group, Inc. operates as an online travel company in the United States and internationally. The company operates through B2C, B2B, and trivago segments. The B2C segment includes Brand Expedia, a full-service online travel brand offers various travel products and services; Hotels.com for lodging accommodations; Vrbo, an online marketplace for the alternative accommodations; and Orbitz, Travelocity, ebookers, and Wotif Group. The B2B segment provides various travel and non-travel companies including airlines, offline travel agents, online retailers, corporate travel management, and financial institutions who leverage its travel technology and tap into its diverse supply to augment their offerings and market Expedia Group rates and availabilities to its travelers. The trivago segment sends referrals to online travel companies and travel service providers from hotel metasearch websites. In addition, it provides brand advertising through online and offline channels, loyalty programs, mobile apps, and search engine marketing, as well as metasearch, social media, direct and personalized traveler communications on its websites, and through direct e-mail communication with its travelers. The company was formerly known as Expedia, Inc. and changed its name to Expedia Group, Inc. in March 2018. Expedia Group, Inc. was founded in 1996 and is headquartered in Seattle, Washington.
Metric Explanations
What each dimension measures and where the thresholds come from.
Gross Profit Margin
Revenue minus cost of goods sold. Graham's ≥40% threshold identifies businesses with durable pricing power. Note: software and financial companies naturally exceed this; retailers and manufacturers rarely reach it due to their cost structures.
Operating Margin
Profit after operating costs before interest and taxes. A consistent ≥15% operating margin signals a business with real competitive advantages. Capital-intensive industries (airlines, auto, commodities) rarely hit this threshold due to their structural cost base — compare within industry for context.
Net Income Margin
Bottom-line profit as a percentage of revenue. The ≥20% target reflects Buffett's preference for highly profitable businesses. Financial engineering (buybacks, tax optimisation) can inflate this temporarily — look for consistency across multiple years rather than a single strong result.
Years to Pay Off Debt
Total Debt ÷ Net Income. Lower = stronger balance sheet. Important caveat: utilities, telecoms, REITs, and infrastructure companies carry large structural debt by design — their bond-like cash flows service it comfortably at ratios that would alarm Graham. Compare within sector.
Working Capital vs Long-Term Debt
Working Capital minus Long-Term Debt. Negative results are common and expected in capital-return-focused businesses like Apple, Domino's, and McDonald's — where aggressive buybacks and dividends intentionally reduce book equity. This does not indicate financial distress in high-FCF businesses.
Working Capital
Current Assets minus Current Liabilities. Negative working capital can be a deliberate efficiency strategy in businesses that collect cash before paying suppliers (retailers, fast food franchises, subscription businesses). Assess alongside free cash flow generation for full context.
Price-to-Book
Market price vs book value per share. Rarely below 1.5x for quality businesses today. Intangible assets (brand, software, patents) don't appear on the balance sheet under accounting rules, making P/B artificially high for asset-light companies like software and consumer brands.
Free Cash Flow
Operating cash flow minus capital expenditures. Buffett's most important metric — cash a business actually generates for its owners after maintaining and growing its asset base. Consistently positive FCF is one of the strongest indicators of a durable, well-run business regardless of accounting profits.
Owner Earnings
Net Income + Depreciation & Amortisation − Capital Expenditures. Buffett's preferred measure of a company's true annual earning power — what could theoretically be distributed to owners without impairing the business. More reliable than reported EPS because it accounts for the capital cost of maintaining the business.
Net Income From Continuing Operation Net Minority Interest
-6,000
205,000
Reconciled Depreciation
228,000
220,000
Reconciled Cost Of Revenue
377,000
346,000
EBITDA
364,000
595,000
EBIT
136,000
375,000
Net Interest Income
-51,000
-63,000
Interest Expense
111,000
121,000
Interest Income
60,000
58,000
Normalized Income
89,400
388,622
Net Income From Continuing And Discontinued Operation
-6,000
205,000
Total Expenses
3,183,000
2,999,000
Total Operating Income As Reported
251,000
420,000
Diluted Average Shares
121,827
128,239
Basic Average Shares
121,827
122,743
Diluted EPS
0
0
Basic EPS
0
0
Diluted NI Availto Com Stockholders
-6,000
205,000
Net Income Common Stockholders
-6,000
205,000
Net Income
-6,000
205,000
Minority Interests
6,000
-7,000
Net Income Including Noncontrolling Interests
-12,000
212,000
Net Income Continuous Operations
-12,000
212,000
Tax Provision
37,000
42,000
Pretax Income
25,000
254,000
Other Income Expense
-167,000
Other Non Operating Income Expenses
-8,000
-11,000
Special Income Charges
8,000
-125,000
Gain On Sale Of Business
0
Other Special Charges
-64,000
97,000
18,000
Impairment Of Capital Assets
0
114,000
Restructuring And Mergern Acquisition
56,000
31,000
Gain On Sale Of Security
-167,000
-95,000
Net Non Operating Interest Income Expense
-51,000
-63,000
Interest Expense Non Operating
111,000
121,000
Interest Income Non Operating
60,000
58,000
Operating Income
243,000
548,000
Operating Expense
2,806,000
2,653,000
Depreciation Amortization Depletion Income Statement
228,000
220,000
Depreciation And Amortization In Income Statement
228,000
220,000
Amortization
7,000
8,000
Amortization Of Intangibles Income Statement
7,000
8,000
Depreciation Income Statement
221,000
212,000
Research And Development
324,000
322,000
Selling General And Administration
2,254,000
2,111,000
Selling And Marketing Expense
2,058,000
1,909,000
General And Administrative Expense
196,000
202,000
Other Gand A
48,000
52,000
Salaries And Wages
148,000
150,000
Gross Profit
3,049,000
3,201,000
Cost Of Revenue
377,000
346,000
Total Revenue
3,426,000
3,547,000
Operating Revenue
3,426,000
3,547,000
Balance Sheet
2026
2025
2024
Treasury Shares Number
185,460
181,749
Ordinary Shares Number
119,999
122,499
Share Issued
298,182
296,971
Net Debt
748,000
2,083,000
Total Debt
4,706,000
6,415,000
Tangible Book Value
-7,327,000
-6,407,000
Invested Capital
5,046,000
7,445,000
Working Capital
-5,209,000
-4,458,000
Net Tangible Assets
-7,327,000
-6,407,000
Capital Lease Obligations
236,000
254,000
Common Stock Equity
576,000
1,284,000
Total Capitalization
5,046,000
5,753,000
Total Equity Gross Minority Interest
1,836,000
2,547,000
Minority Interest
1,260,000
1,263,000
Stockholders Equity
576,000
1,284,000
Gains Losses Not Affecting Retained Earnings
-188,000
-191,000
Other Equity Adjustments
-188,000
-191,000
Treasury Stock
17,577,000
16,786,000
Retained Earnings
1,632,000
1,696,000
Additional Paid In Capital
16,709,000
16,565,000
Total Liabilities Net Minority Interest
24,623,000
21,905,000
Total Non Current Liabilities Net Minority Interest
5,261,000
5,248,000
Other Non Current Liabilities
524,000
505,000
Non Current Deferred Liabilities
31,000
20,000
Non Current Deferred Taxes Liabilities
31,000
20,000
Long Term Debt And Capital Lease Obligation
4,706,000
4,723,000
Long Term Capital Lease Obligation
236,000
254,000
Long Term Debt
4,470,000
4,469,000
Current Liabilities
19,362,000
16,657,000
Current Deferred Liabilities
15,174,000
10,591,000
Current Deferred Revenue
15,174,000
10,591,000
Current Debt And Capital Lease Obligation
1,692,000
1,043,000
Current Debt
1,692,000
1,043,000
Other Current Borrowings
1,692,000
1,043,000
Payables And Accrued Expenses
4,188,000
4,374,000
Current Accrued Expenses
844,000
1,027,000
Payables
3,344,000
3,347,000
Total Tax Payable
29,000
56,000
Income Tax Payable
29,000
56,000
Accounts Payable
3,315,000
3,291,000
Total Assets
26,459,000
24,452,000
Total Non Current Assets
12,306,000
12,253,000
Other Non Current Assets
1,282,000
1,387,000
Non Current Deferred Assets
412,000
432,000
Non Current Deferred Taxes Assets
412,000
432,000
Goodwill And Other Intangible Assets
7,903,000
7,691,000
Other Intangible Assets
887,000
819,000
Goodwill
7,016,000
6,872,000
Net PPE
2,709,000
2,743,000
Accumulated Depreciation
-3,069,000
-2,814,000
Gross PPE
2,709,000
5,812,000
Construction In Progress
3,831,000
3,569,000
Other Properties
2,709,000
296,000
Machinery Furniture Equipment
295,000
285,000
Buildings And Improvements
1,244,000
1,227,000
Land And Improvements
146,000
146,000
Current Assets
14,153,000
12,199,000
Other Current Assets
906,000
699,000
Restricted Cash
2,249,000
1,563,000
Receivables
5,204,000
4,204,000
Taxes Receivable
55,000
38,000
Accounts Receivable
5,149,000
4,166,000
Allowance For Doubtful Accounts Receivable
-84,000
-74,000
Gross Accounts Receivable
5,233,000
4,240,000
Cash Cash Equivalents And Short Term Investments
5,794,000
5,733,000
Other Short Term Investments
254,000
320,000
Cash And Cash Equivalents
5,540,000
5,413,000
Cash Flow
2026
2025
2024
Free Cash Flow
3,747,000
119,000
Repurchase Of Capital Stock
-788,000
-327,000
Repayment Of Debt
-1,828,000
0
Issuance Of Debt
0
0
Capital Expenditure
-184,000
-185,000
Interest Paid Supplemental Data
111,000
2,000
Income Tax Paid Supplemental Data
61,000
83,000
End Cash Position
7,789,000
6,976,000
Beginning Cash Position
6,976,000
7,262,000
Effect Of Exchange Rate Changes
-28,000
Changes In Cash
841,000
-284,000
Financing Cash Flow
-2,650,000
-389,000
Cash Flow From Continuing Financing Activities
-2,650,000
-389,000
Net Other Financing Charges
-1,000
-13,000
4,000
Proceeds From Stock Option Exercised
25,000
0
Cash Dividends Paid
-58,000
-49,000
Common Stock Dividend Paid
-58,000
-49,000
Net Common Stock Issuance
-788,000
-327,000
Common Stock Payments
-788,000
-327,000
Net Issuance Payments Of Debt
-1,828,000
0
Net Long Term Debt Issuance
-1,828,000
0
Long Term Debt Payments
-1,828,000
0
Long Term Debt Issuance
0
0
Investing Cash Flow
-440,000
-199,000
Cash Flow From Continuing Investing Activities
-440,000
-199,000
Net Other Investing Changes
-279,000
-35,000
Net Investment Purchase And Sale
23,000
21,000
Sale Of Investment
197,000
131,000
Purchase Of Investment
-174,000
-110,000
Capital Expenditure Reported
-184,000
-185,000
Operating Cash Flow
3,931,000
304,000
Cash Flow From Continuing Operating Activities
3,931,000
304,000
Change In Working Capital
3,299,000
-372,000
Change In Other Working Capital
4,545,000
-737,000
Change In Payables And Accrued Expense
-42,000
34,000
Change In Payable
-42,000
34,000
Change In Account Payable
-42,000
34,000
Change In Prepaid Assets
-198,000
25,000
Change In Receivables
-1,006,000
306,000
Changes In Account Receivables
-1,006,000
306,000
Other Non Cash Items
71,000
88,000
Stock Based Compensation
103,000
105,000
Asset Impairment Charge
0
114,000
Deferred Tax
1,000
-24,000
Deferred Income Tax
1,000
-24,000
Depreciation Amortization Depletion
228,000
220,000
Depreciation And Amortization
228,000
220,000
Amortization Cash Flow
7,000
8,000
Amortization Of Intangibles
7,000
8,000
Depreciation
221,000
212,000
Operating Gains Losses
241,000
75,000
Gain Loss On Investment Securities
218,000
77,000
Net Foreign Currency Exchange Gain Loss
23,000
-2,000
Net Income From Continuing Operations
-12,000
212,000
📊Quarterly mode — Graham Fair Value & 7 Criteria require annual data. Switch to Annual for full analysis.
Quarter vs Same Quarter Last Year
YoY strips seasonality
Revenue Growth (YoY)
Prior year: $3.0B▲ $3.4B+14.7%
Revenue growth vs same quarter last year strips seasonality. Consistent double-digit growth is a Buffett hallmark.
Gross Margin
Prior year: 88.1%▲ 89.0%+0.9pp
Buffett: consistent gross margin above 40% signals durable pricing power and competitive moat.
Operating Margin
Prior year: 8.1%▲ 7.1%-1.0pp
Graham: operating margin reflects true business economics before financing. Trend matters as much as level.
Net Margin
Prior year: -6.7%▲ -0.2%+6.5pp
Net margin can be distorted by one-time items, tax timing, or interest costs — compare to operating margin for signal quality.
Quarterly Health Checks
3 Graham/Buffett criteria that are valid and reliable on quarterly data
✅ Adequate Size
Graham required scale for resilience. Quarterly revenue × 4 gives an annualised proxy.
$3.4B/qtr (≈$13.7B ann.)
vs > $1.5B annualised revenue
❌ Financial Condition
Current assets vs current liabilities — a real-time liquidity snapshot. Valid and reliable on quarterly data.
0.73x current ratio
vs ≥ 2.0x
✅ Free Cash Flow
Buffett's most important single metric. A positive FCF quarter means the business generated real cash for owners after maintaining its asset base.
$3.7B
vs Positive
Operating Cash Flow
$3.9B
Latest quarter · Buffett's cash reality check
ROIC
2.7%
Based on latest annual operating income
Return on Invested Capital — Buffett's preferred measure for asset-light businesses. ROIC > 15% consistently signals a durable competitive advantage (moat). More meaningful than P/B for software, pharma, and consumer brand companies where most value is intangible and off-balance-sheet.
Market Cap / Net Assets
15.0x
Net Assets: $1.8B
⚠️Operating income is positive but net income is negative. This typically reflects below-the-line items: interest expense, impairment charges, tax adjustments, or one-time write-offs. The core business may be healthy — operating margin is a better signal of ongoing profitability here.
"The management of a business is its most important single factor — more important than market position, patents, or financial structure."
— Benjamin Graham
Capital Allocation & Alignment
Insider Ownership
0.62%
Low — management has little skin in the game
Return on Equity (ROE)
-1.0%
Weak — poor returns on equity
Return on Assets (ROA)
-0.0%
Poor — assets are not generating adequate returns
Share Buybacks (Latest Year)
$1.9B
Management is returning capital to shareholders via buybacks
Debt Trend YoY
-26.6% YoY
Debt is declining — management is deleveraging
Leadership Team
Barry Diller
Executive Chairman of the Board & Senior Executive
Age 83
Pay: $1,139,409
Ariane Gorin
CEO & Director
Age 51
Pay: $1,902,784
Derek Andersen
Chief Financial Officer
Age 46
Rob Bevegni
Vice President of Investor Relations
Top Institutional Holders
Institution
% Owned
Shares
Blackrock Inc.
9.17%
10,497,804
Vanguard Capital Management LLC
6.64%
7,600,748
Vanguard Portfolio Management LLC
5.17%
5,913,913
State Street Corporation
4.88%
5,592,493
Geode Capital Management, LLC
3.51%
4,023,249
Windacre Partnership LLC
3.00%
3,433,400
JPMORGAN CHASE & CO
2.67%
3,055,997
AQR Capital Management, LLC
2.23%
2,549,624
⚠️Current ratio below 1 — liquidity risk
Risk Analysis
Beta (Market Risk)
1.26
Moderate volatility — moves slightly more than market
Short Interest
8.4% of float
Moderate short interest
Debt-to-Equity
2.57x
High leverage — significant financial risk
Current Ratio
0.73x
Weak liquidity — current liabilities exceed current assets
52-Week Price Range
Low: $160.00Current: $240.90High: $303.80
Currently at 56% of 52-week range
Expedia Group, Inc. (EXPE) fundamental analysis — Overall grade D based on profitability, financial health, valuation and cash flow. Graham's
Fair Value: N/A (negative EPS). Gross profit margin: 89.0%. Operating margin: 7.1%. Net margin: -0.2%. Market cap: $28.9B. Sector: Consumer Cyclical. Industry: Travel Services. Analysis powered by 360investing — free fundamental stock analysis based on Benjamin Graham and Warren Buffett
principles.
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