Trip.com: Post-Investigation Plummet Offers Opportunity Given China's Tourism Tailwind
Trip.com is currently under investigation by the SAMR, which has led to a significant drop in its stock price. Despite this, the company's valuation remains competitive compared to its peers, trading at 11-12 times EV/EBITDA. The outlook for travel growth in China and ongoing buybacks present potential opportunities for investors.
- ▪Trip.com faces a SAMR antitrust probe with potential fines ranging from RMB 0.6 to 6 billion.
- ▪The company's stock has declined by over 40% from its pre-investigation highs.
- ▪Trip.com is trading at 11-12 times EV/EBITDA, which is below that of other Chinese tech companies.
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