Risk factor
Negligible price volatility
Profitability factor
Very strong margins and returns
About
Amadeus IT Group S.A., along with its various subsidiaries, operates globally as a core transaction facilitator for the travel and tourism industry. The company's activities are structured into two primary divisions: Distribution and IT Solutions. It functions as an extensive international network, enabling real-time searches, pricing, bookings, and ticketing services. Additionally, Amadeus furnishes travel service providers with a comprehensive portfolio of technology solutions aimed at automating crucial business processes, such as managing reservations, overseeing inventory, and controlling departure operations. Beyond these core services, the group engages in a broad range of other activities, including software development and specification, product distribution, regional customer support, data processing, brokerage, consulting, the installation of industrial machinery and equipment, and various information technology services. Its scope also extends to financial operations and e-commerce ventures. Amadeus serves a diverse client base across the travel ecosystem, including airlines, airports, hotels, tour operators, insurance providers, road and sea transportation companies, travel sellers and brokers, travel purchasers, and ground handling services. Founded in 1987 and headquartered in Madrid, Spain, the company was formerly recognized as Amadeus IT Holding, S.A. before officially changing its name to Amadeus IT Group, S.A. in August 2016.
Company Valuation
Based on key historical and expected multiples, the stock is slightly overvalued relative to its peers. Specifically, the stock is fairly valued on P/E, neutral on EV/EBI
Target Price
The average target price of AMS.MC is 70 and suggests 33% upside potential. Usually, this means a BUY recommendation among investment firms, or a recommendation to increa