Analysis on Priceline.com

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PRICELINE.COM
PCLN(NASDAQ)
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Background

• priceline.com Incorporated is an online travel
  company that offers its customers hotel room
  reservations at over 210,000 hotels worldwide
  through the Booking.com, priceline.com and Agoda
  brands.
• In the United States, the Company also offers
  its customers reservations for car rentals,
  airline tickets, vacation packages, destination
  services and cruises through the priceline.com
  brand.

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Background

• In the United States, the Company also offers
  customers the ability to purchase other travel
  services, including airline tickets, rental car
  days, vacations packages, destination services
  and cruises through both a traditional,
  price-disclosed retail manner, and through its
  demand-collection system known as Name Your Own
  Price.

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Fundamentals'

• During the year ended December 31, 2011, it
  re-branded Travel Jigsaw as rentalcars.com
  through rentalcars.com, it offers retail
  price-disclosed rental car reservations
  worldwide.
• It offers car rental reservations world-wide
  through rentalcars.com.

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Fundamentals'

• Priceline uses a unique business model known as
  the reverse auction pricing model.
• Not only has Priceline pioneered this business
  model, but it has also patented it.
• Priceline is that it has been aggressively
  expanding its international presence.
• International bookings currently account for 78
  of its total business.

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Fundamentals'

• Priceline has been destroying its competition in
  terms of generating revenue. Priceline has
  increased its revenues by more than 209 from
  2008 to February of 2012.
• It has a 3-Year Sales Growth rate of 35

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Fundamentals'

• Priceline.com has an excellent combination of
  strong free cash flow generation and low
  financial leverage. We expect the firm's free
  cash flow margin to average about 29.9 in coming
  years.
• Total debt-to-EBITDA was 0.4 last year, while
  debt-to-book capitalization stood at 18.3.

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EARNINGS ESTIMATES
  This Quarter06/2012 Next Quarter09/2012 This Year12/2012 Next Year12/2013
Average Estimate 7.07 12.48 30.06 37.21
Number of Estimates 11 11 11 11
Low Estimates 6.93 11.41 28.80 34.74
High Estimate 7.25 13.07 30.88 39.31
Year Ago EPS 5.27 9.75 22.32 30.06
EPS Growth 34.21 28.04 34.66 23.79
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Financial Summary
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Industry Analysis
Expedia Orbitz Priceline Travelocity Industry
Market Cap 7.38 B 501.64 M 9.27 B N/A 497.45 M
Revenue 2.88 B 743 M 2.20 B N/A 929.06 M
Gross Margin 79.28 81.70 52.33 N/A 46.97
EBITDA 735.35 M 149 M 445.13 M N/A 158.63 M
Operating Margin 22.24 10.90 18.41 N/A 17.80
Net Income -2.56 B -311 M 456.39 M N/A
P/E N/A N/A 22.30 N/A 22.41
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Capital Structure
Future Path of Fair Value
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Future Path of Fair Value
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Future Path of Fair Value
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Analyst Estimates
Zakcs Research Price Target (
810) JPMorgan Chase.Price Target (
707) Piper Jaffray . Price Target (
881) Piper Jaffray . Price Target (
881) Mean_at_ yahoo Finance..Price Target (
803) NasdaqPrice Target (
800) Consensus At Ft.com..Price Target (
800)
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Stock Performance
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Stock Performance
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Technical's

• Current Market price ..645
• 50-Day moving avg566
• 100-Day moving avg490
• 1st Support_at_ 628(23.60 Retracement)
• 2nd Support_at_538(28.30 Retracement)
• 1st Resistance_at_650
• 2nd Resistance_at_700

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Conclusions

• Stock in its correction phase
• Fundamentals are awesome.
• Sales growth more than 30
• Strong free cash flow

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Recommendations

• Based on a strong fundamentals , we expect the
  company has the ability to outperform the market.
• Buy_at_590-600
• Buy on dips
• We recommend that the company be kept on the
  watch list.

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Presented By

• Century Financial Brokers
• Contact No. 97143841907

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