Reasons Behind Our Ctrip Stock Price Estimate of $43 Source: forbes We expect Ctrip’s EBITDA margin to increase over our review period, as investment levels come down in the next few years, but believe that this margin will remain well below the historical high of over 40%. Ctrip is focusing on the development of an open platform which will enable it to consolidate all its partner operations on a single platform. Consequently, this will lead to more pricing transparency and a greater array of available products. On the flip-side, the price competitiveness can erode Ctrip’s margins. This, coupled with continuous influx of competitors in the OTA space (a recent addition being Alibaba‘s Alitrip), can limit Ctrip’s margin expansion.
Posted on: Mon, 15 Dec 2014 14:05:00 +0000
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