Flying High, But Still a Buy: Expedia Inc (EXPE), MakeMyTrip Limited (MMYT)

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The Final Word

Expedia competes with MakeMyTrip Limited (NASDAQ:MMYT), Cleartrip and Yatra.com. Asian markets are known to have low margins but huge volumes. Its peers have been giving better deals in the subcontinent, and consumers from the region do not prefer Expedia for their domestic travel needs. As a matter of fact, MakeMyTrip Limited (NASDAQ:MMYT) Limited (NASDAQ:MMYT) recently reported 25.4% growth in quarterly revenues, and expects the Bull Run to continue. But MakeMyTrip Limited (NASDAQ:MMYT) has a small global presence, and its shares appear to be hugely overvalued (forward P/E of 75x). Expedia has not been able to capture the Indian and Chinese markets, which leaves room for growth. Although its shares have risen by nearly 155% over the last 5 years, they trade at forward P/E of 14.9x. I think Expedia is a great growth pick, and deserves a Buy Rating.

The article Flying High, But Still a Buy originally appeared on Fool.com and is written by Piyush Arora.

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