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Hostelworld Group (HSW) Fair Value & Analysis

Consumer Cyclical · GB · Market cap 132M GBX

HG Hostelworld Group HSW · LSE
Price£1.05
Fair Value£1.23
Upside+17.1%
Quality68/100
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Healthy Growth
Thin margins · 7.5% net margin
Low debt · generates free cash flow
2.25% dividend yield
Mixed vs. peers (7/14)
Moderate moat 50/100
Evidence: High Range £0.9200 – £1.53 Share as image

Fair value as of: Jul 17, 2026

From 26 valuation models · updated 24 days ago

Share price +3.8% over the past month.

A solid business, screening 17% undervalued on our models.

What matters now

  • Our model range runs from £0.9200 (bear) to £1.53 (bull), base £1.23. The closer the price sits to the lower half, the larger the margin of safety.
  • Quality 68/100 (solid quality) with high evidence: the data supports the verdict.
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Price vs Fair Value (5 years)

£1.62 £0.5787 Fair Value £1.23 May 2021 Aug 2026

White line = price, green steps = our fair value per fiscal year, dashed = 300-day average. As of Jul 17, 2026.

How to read this chart

60‑month range £0.5787 – £1.62 · fair‑value band £0.9200 – £1.53 · the £1.05 price screens below the £1.23 fair value. Green steps = our fair value per fiscal year (point-in-time, no hindsight). Dashed = 300-day average. As of Jul 17, 2026.

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Analysis

Hostelworld Group (HSW) currently trades at £1.05, while our model-based Fair Value estimate is £1.23, implying the stock looks roughly 17.1% undervalued today. The Quality Score stands at 68/100 (solid quality), in the Consumer Cyclical sector. Bull case: trading below our estimate, it may offer upside if the fundamentals hold. Bear case: a low price can be a value trap when quality is weak or the data is thin (evidence: high), always confirm before acting.

Over the trailing twelve months, Hostelworld Group generated revenue of £93.8M at a net margin of 7.5%. Revenue grew 3.3% year over year. It earns a return on equity of 9.8%. Net debt stands at £2.5M. Fundamentals as of Jul 17, 2026

Our scenario range runs from £0.9200 (bear case) to £1.53 (bull case); at £1.05, the current price sits within that range. Bear and bull are the same models run on conservative and optimistic assumptions (margins, growth, valuation multiples), so a plausible valuation range, not a price target. For context, the median of 10 Consumer Cyclical peers we cover trades at -16% fair-value upside, at 17%, HSW screens cheaper than that median.

Fair Value models

Each model estimates fair value its own way; the Fair Value above is the evidence-weighted blend. Evidence (0–100) measures how completely this model’s inputs are available: well-fed models carry more weight in the blend. The spread across models is intentional, each one stresses a different value driver; dividend models, for instance, come out structurally low when payout is small.

Model Bear Bear = the cautious scenario: the same model computed with conservative anchors (lower growth, margins and valuation multiples). Together with Bull it frames a plausible valuation range, not a price target.BaseBull Bull = the optimistic scenario: the same model computed with favourable anchors (higher growth, margins and valuation multiples). Together with Bear it frames a plausible valuation range, not a price target. Evidence
Highest evidence
Growth DCF £1.39 £2.16 £3.20 80
Residual Income £0.4600 £0.4800 £0.5100 76
Rev-Margin DCF £0.9500 £1.47 £2.16 74
All 26 models by family
DCF Models
FCF DCF £1.43 £2.33 £3.67 38
Owner Earnings £1.27 £2.07 £3.25 31
5Y Revenue Exit £0.9500 £1.47 £2.14 39
5Y EBITDA Exit £1.45 £2.51 £3.84 41
5Y P/E Exit £1.09 £1.75 £2.50 38
10Y Revenue Exit £1.11 £1.63 £2.39 36
10Y EBITDA Exit £1.41 £2.29 £3.63 37
10Y P/E Exit £1.21 £1.81 £2.65 35
Earnings-Based
Graham-Dodd £0.3800 £1.89 £2.61 54
Lynch FV £0.5100 £0.7300 £0.9500 50
PEG = 1.0 £0.5100 £0.7300 £0.9500 46
EPV £0.6600 £0.7300 £0.7900 59
Dividend Discount
Gordon GGM £0.0600 £0.0900 £0.1200 70
DDM Multi-Stage £0.0600 £0.0900 £0.1000 61
Multiples
P/E Multiple £0.9200 £1.23 £1.53 63
P/S Multiple £0.6700 £0.9000 £1.12 58
P/B Multiple £0.7100 £0.9500 £1.18 55
EV/EBIT £1.37 £1.82 £2.26 53
EV/EBITDA £1.60 £2.13 £2.65 54
EV/Revenue £0.6500 £0.9200 £1.19 43
Asset-Based
NCAV (Graham) £0.3000 £0.4000 £0.5900 50
Growth DCF
Growth DCF £1.39 £2.16 £3.20 80
Rev-Margin DCF £0.9500 £1.47 £2.16 74
Economic Profit
Residual Income £0.4600 £0.4800 £0.5100 76
ROIC Compounder £0.6800 £0.8300 £1.02 72
Growth Earnings
Growth-Adj P/E £0.8000 £1.15 £1.49 68

Widest divergence: DCF Models (£1.81) versus Dividend Discount (£0.0900). Highest evidence: Growth DCF (80).

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Key figures & financial health

Revenue (TTM) 93.8M GBX
Revenue growth (YoY) +3.3%
Net margin 7.5%
Return on equity 9.8%
Free cash flow 18.1M GBX FY2025
P/E ratio 21.4
More key figures
Operating margin 15.5%
EPS (TTM) £0.0500
Dividend yield 2.3%
EPS growth (YoY) -8.2%
Net debt 2.5M GBX FY2025

Figures from reported company fundamentals · as of Jul 17, 2026. TTM = trailing twelve months.

Quality Score breakdown

Overall quality 68/100

Of which business quality 69 · Market factors (momentum, volatility) 46

Profitability 59
Margins and returns on capital today
Quality Growth 44
Are margins and returns improving?
Cashflow 88
Earnings quality: real cash, not paper profit
Fin. Strength 72
Balance sheet, leverage, solvency risk
Investment 80
Disciplined investing over empire-building
Low Volatility 73
Calm price path (market factor)
Momentum 38
Price trend over the last 3–12 months (market factor)
52W Momentum 31
Distance to the 52-week high (market factor)
Net Issuance 69
Buybacks instead of dilution

Non-valuation factor families (profitability, growth, cashflow, financial strength, momentum …), each academically grounded. Valuation itself sits in the Fair Value and is deliberately excluded here to avoid double-counting.

About the company

Hostelworld Group plc operates as an online travel agent focused on the hostel market worldwide. The company offers software and data processing services that facilitate hostel, bed and breakfasts, hotel, and other accommodation bookings.

Full company description

Hostelworld Group plc operates as an online travel agent focused on the hostel market worldwide. The company offers software and data processing services that facilitate hostel, bed and breakfasts, hotel, and other accommodation bookings. It also provides marketing planning services and marketing and research and development services, as well as management services. In addition, the company engages in the technology trading business. The company was founded in 1999 and is based in Dublin, Ireland.

Company description, as reported by the company or data provider.

Revenue & earnings trend

FY2021 – FY2025 · reported fiscal years

Hostelworld Group reported revenue of £92.1M in FY2025 versus £16.9M in FY2021, a compound +52.8%/yr. Reported net income was £6.9M in FY2025.

Growth Quality 90/100
Revenue growth appears healthy and is supported by profitability and cash-flow quality.
Latest Revenue (FY 2025)
£92.1M
Latest YoY
+0.1%
Avg. growth/yr (3Y) Measures the company's TOTAL revenue from reported annual statements: compound average growth per year (CAGR) from the fiscal year 3, 5 or N years back to the most recent comparable fiscal year. Not per share: buybacks do not change this number, and a merger can appear as a growth jump.
+9.7%
Avg. growth/yr (5Y) Measures the company's TOTAL revenue from reported annual statements: compound average growth per year (CAGR) from the fiscal year 3, 5 or N years back to the most recent comparable fiscal year. Not per share: buybacks do not change this number, and a merger can appear as a growth jump.
+43.1%
Avg. growth/yr (13Y) Measures the company's TOTAL revenue from reported annual statements: compound average growth per year (CAGR) from the fiscal year 3, 5 or N years back to the most recent comparable fiscal year. Not per share: buybacks do not change this number, and a merger can appear as a growth jump.
+4.5%
Revenue +52.8%/yr
FY21 £16.9M
FY22 £69.7M
FY23 £93.3M
FY24 £92.0M
FY25 £92.1M
Net income
FY21 −£36.0M
FY22 −£17.3M
FY23 £5.1M
FY24 £9.1M
FY25 £6.9M

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Cite: Fair Value Calculator (2026). "Hostelworld Group Fair Value". https://www.fairvalue-calculator.com/stock/HSW

Peer Group

Travel Services · 90 stocks

How this stock ranks against its industry: the green marker is this stock, the band is the typical 25–75% peer range, and the tick is the median.

Quality Score 68 · Top 25%
Fair Value upside +17% · Above median
Return on equity (TTM) 10% · Above median
Return on assets 6% · Top 25%
Net margin (TTM) 7% · Above median
Operating margin (TTM) 16% · Top 25%
Revenue growth 3% · Below median
Dividend yield (TTM) 2.3% · Above median
Debt / equity 0.13× · Higher than median

Valuation Multiples vs Travel Services median · lower = cheaper

P/E (TTM) 21.4× · Pricier than median
P/B 2.43× · Pricier than median
P/S (TTM) 1.90× · Pricier than median
P/FCF 9.9× · Pricier than median
EV/EBITDA 12.2× · Pricier than median

Snowflake

Five quick dimensions, each 0 to 100: VALUE (fair-value potential), FUTURE (revenue growth), PAST (return on equity), HEALTH (low debt), DIVIDEND (yield). Green = this stock, grey = typical sector peer.

VALUE 56 · sector 19
FUTURE 17 · sector 25
PAST 39 · sector 36
HEALTH 94 · sector 97
DIVIDEND 45 · sector 36

Insider activity: 40/100

Values & ESG

Does this company touch areas you may want to avoid? The classification is inferred from sector and industry.

None of the checked exposures detected

ESG scores are not available for this stock yet. Values and ESG data are contextual and can differ between providers.

Similar stocks

10 more Travel Services stocks, each showing price versus our Fair Value estimate (as of Jul 17, 2026).

Stock Price Fair Value vs Fair Value
Booking Holdings BKNG $182.80 $152.94 -16%
Airbnb, Inc ABNB $148.62 $57.47 -61%
Royal Caribbean Cruises Ltd RCL $286.96 $215.19 -25%
Viking Holdings VIK $100.69 $43.51 -57%
Carnival Corporation CCL $26.41 $31.36 +19%
Expedia Group EXPE $268.77 $248.63 -7%
Trip.com Group TCOM $42.45 $88.82 +109%
Norwegian Cruise Line Holdings NCLH $19.46 $20.28 +4%
Global Business Travel Group GBTG $9.40 $4.17 -56%
Travel + Leisure Co TNL $73.27 $27.29 -63%

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Frequently asked questions

Is Hostelworld Group (HSW) overvalued or undervalued?
As of Jul 17, 2026, our model estimates a fair value of £1.23 versus a price of £1.05, about +17% (undervalued).
What is the fair value of HSW?
Our model-based fair value for Hostelworld Group is £1.23 (as of Jul 17, 2026), built from audited fundamentals. The current price is £1.05.
What is the quality score of HSW?
Hostelworld Group has a Quality Score of 68/100. It measures business quality (profitability, growth, cash flow, balance-sheet strength, investment discipline, share issuance). Market factors such as price momentum and volatility do not enter the number; they are shown separately in the detail view.
What is the revenue of Hostelworld Group (HSW)?
Hostelworld Group reported trailing-twelve-month revenue of about £93.8M (latest available figure, as of Jul 17, 2026).
What is the net profit margin of HSW?
The net profit margin of Hostelworld Group is about 7.5%, meaning it keeps roughly 7.5% of revenue as net income. Based on the latest reported figures.
Does Hostelworld Group pay a dividend?
Hostelworld Group currently shows a dividend yield of about 2.22% relative to its recent price (as of Jul 17, 2026).

How we calculate Fair Value

Each company is valued through a stack of independent intrinsic-value models (DCF variants, residual-income, multiples and more), blended into one family-balanced consensus and weighted by how much trustworthy data backs it. A separate quality layer scores the fundamentals. Every input is real reported data, nothing guessed.

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