Unlocking TripAdvisor's Hidden Value: A Sum-of-the-Parts Analysis in the Post-Pandemic Travel Sector

The travel and hospitality sector is undergoing a transformative recovery in 2025, driven by pent-up demand and AI-driven personalization. Amid this backdrop, TripAdvisor (TRIP) presents a compelling case of undervaluation, as evidenced by a granular Sum-of-the-Parts (SOTP) analysis of its diversified business segments. While the stock trades at an enterprise value of $1.9 billion, a segment-level valuation using industry-specific multiples suggests an intrinsic value of approximately $3.1 billion-a 63% premium to current market pricing.

Segment Dissection: Contrasting Decline and Growth

TripAdvisor's three core segments-Brand TripAdvisor, Viator, and TheFork-exhibit divergent trajectories. The Brand segment, which generates travel reviews and listings, saw an 8% revenue decline in 2024 to $949 million, reflecting shifting user behavior toward experience-based travel, per the TripAdvisor 2024 10‑K. However, its adjusted EBITDA margin of 32% (up from 26% in Q4 2024) underscores operational efficiency, as reported by MarketScreener. In contrast, Viator (tour bookings) and TheFork (restaurant reservations) are growth engines. Viator's 14% revenue increase to $840 million and 11% EBITDA margin highlight its dominance in the experiences economy, according to the TripAdvisor 2024 10‑K, while TheFork's 18% revenue growth to $181 million signals strong international adoption, per a TradingKey analysis.

Industry Multiples: A Tale of Two Valuations

The disparity between TripAdvisor's current valuation and its intrinsic value emerges when applying industry-specific multiples to each segment.

1. Brand TripAdvisor:
   The online travel reviews segment operates in a mature, low-growth environment. TripAdvisor's EV/EBITDA of 8.5x aligns with its 2024 performance but lags behind the broader Consumer Discretionary sector's 17.41x multiple, per Siblis Research. Given its 32% EBITDA margin and strategic AI-driven traffic initiatives, a 10x multiple seems reasonable, valuing this segment at $3.01 billion (32% margin × $949M revenue × 10x).

2. Viator:
   As a tour booking platform, Viator competes in a sector with higher growth potential. The Business & Consumer Services industry's 15.71x EV/EBITDA multiple, per the NYU dataset, reflects its value proposition. Applying this to Viator's $33 million in annual EBITDA yields a $518.1 million valuation-nearly double its current contribution to TripAdvisor's enterprise value.

3. TheFork:
   Restaurant reservations platforms typically trade at lower multiples due to operational challenges. However, TheFork's tech-driven model (AI-powered matching, mobile-first design) warrants a premium. Using a 5x EV/EBITDA (versus industry averages of 2.8–3.6x, according to FirstPageSage), its $5 million EBITDA translates to a $25 million valuation.

SOTP Valuation: A $3.1 Billion Intrinsic Value

Summing these adjusted valuations produces a total enterprise value of $3.1 billion-a 63% premium to TripAdvisor's current $1.9 billion market cap. This gap reflects the market's underappreciation of Viator and TheFork's growth potential and the Brand segment's operational resilience. CEO Matt Goldberg's emphasis on "experiences as the new center of gravity," as reported by Phocuswire, further validates this thesis, as these high-margin segments now contribute 54% of total revenue (up from 41% in 2023).

Catalysts for Re-rating

Several factors could drive a valuation correction:
- AI-Driven Margin Expansion: TripAdvisor's investment in AI for personalized recommendations and direct bookings is expected to boost EBITDA margins by 2–3% annually, according to the Q4 earnings call.
- Merger Synergies: The pending $1.2 billion merger with Liberty TripAdvisor Holdings (Q2 2025) could unlock cross-selling opportunities and reduce capital expenditures, per the TripAdvisor 2024 10‑K.
- Global Experiences Growth: Viator's 12% year-over-year GBV growth and TheFork's 23% Q4 revenue increase, noted in the TradingKey analysis, position TripAdvisor to capture a larger share of the $9.27 billion online booking services market, according to Business Research Insights.

Conclusion: A Mispriced Opportunity

TripAdvisor's current valuation fails to account for the divergent growth trajectories of its segments. While the Brand segment faces headwinds, Viator and TheFork are high-margin, high-growth assets operating in sectors with superior multiples. A SOTP analysis, combined with AI-driven margin expansion and strategic mergers, suggests the stock is significantly undervalued. For investors seeking exposure to the post-pandemic travel recovery, TripAdvisor offers an asymmetric opportunity with a compelling risk-reward profile.