Value Of TripAdvisor's Non-Hotel Business Suggests Hotel Is Trading For A Song

About: TripAdvisor, Inc. (TRIP)
by: Long Hill Road Capital
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Long Hill Road Capital
Long only, long-term horizon, value, investment advisor

TripAdvisor's Non-Hotel business is absolutely on fire. Revenue growth accelerated to 38% last quarter.

Given my Base case valuation of the Non-Hotel business, the Hotel business has an implied value in the market of about $1.3 billion, which is insanely cheap.

Given my Base case valuations of both segments, TRIP is worth at least $76 per share, a 47% premium to the current stock price.

I'm not a catalyst-driven investor, but two things this year could get investors excited.

TripAdvisor (TRIP) reported their fourth-quarter earnings a couple weeks ago. It was a good quarter characterized by accelerating growth in the Non-Hotel business, which grew 37.7% in the quarter, and surging profits in