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Question 2 (8%): Airbnb, Inc. (ABNB) is about to go public in mid-December. Its direct competitors are hotels, but their business models are quite different. Therefore, it's not a good idea to use hotel stocks' trading multiples to price Airbnb's IPO. Airbnb is probably more similar to Uber or Expedia Group (EXPE). Here are some stats about UBER and EXPE: UBER EXPE Total Revenue $4,805M Market Cap $93B $180 Cost of Revenue 1,196M P/E (TTM) N/A 14.99 Net Income (502M) P/S (TTM) 6.63 2.51 Total Assets 8,728M P/B (MRQ) 9.79 10.72 Total Shareholders' Equity (1,376M) PEG N/A 8.26 Shares Outstanding 601M The following FY2019 numbers are pulled from Airbnb's 5-1 filing with the SEC. FY2019 is probably a better year to look at ABNB's long-term prospect because the pandemic wasn't part of the factors. TTM: Trailing Twelve Months MRQ: Most Recent Quarter Numbers in parentheses indicate negative. Set Airbnb's IPO per-share price using the trading multiples. Justify your choice of the benchmark. Question 2 (8%): Airbnb, Inc. (ABNB) is about to go public in mid-December. Its direct competitors are hotels, but their business models are quite different. Therefore, it's not a good idea to use hotel stocks' trading multiples to price Airbnb's IPO. Airbnb is probably more similar to Uber or Expedia Group (EXPE). Here are some stats about UBER and EXPE: UBER EXPE Total Revenue $4,805M Market Cap $93B $180 Cost of Revenue 1,196M P/E (TTM) N/A 14.99 Net Income (502M) P/S (TTM) 6.63 2.51 Total Assets 8,728M P/B (MRQ) 9.79 10.72 Total Shareholders' Equity (1,376M) PEG N/A 8.26 Shares Outstanding 601M The following FY2019 numbers are pulled from Airbnb's 5-1 filing with the SEC. FY2019 is probably a better year to look at ABNB's long-term prospect because the pandemic wasn't part of the factors. TTM: Trailing Twelve Months MRQ: Most Recent Quarter Numbers in parentheses indicate negative. Set Airbnb's IPO per-share price using the trading multiples. Justify your choice of the benchmark