trivago N.V.

Where It Passes

Where It Falls Short

• Valuation models0% pass✗ 2▾

  TRVG overvalued: all 2 models price fair value below $4.15 (median $0.39)

  Graham fair value$0.75

  ✗Graham-10.7% margin vs $4.15

  Lynch fair value$0.03

  ✗Lynch-2666.7% margin vs $4.15
• Debt & Leverage8% pass✓ 3✗ 12▾

  11 of 12 flag TRVG's debt & leverage — Graham, Buffett, Lynch +8 more

  LT Debt vs Net Current Assets

  ✗GrahamLT Debt <= Net Current Assets

  Debt/Equity & Interest Coverage

  ✗BuffettD/E < 0.5 AND Interest Coverage > 5x

  Total Debt / Equity

  ✗Lynch< 0.33

  Cash - Long-term Debt

  ✗LynchPositive preferred

  LT Debt / Total Assets Change0.00% -> 0.00%

  ✓PiotroskiDecreased YoY

  Current Assets / Current Liabilities2.22

  ✓Dreman> 1.5✓SchlossCurrent ratio >= 1.50x (app cutoff)

  Total Debt / Shareholders' Equity

  ✗Dreman< 0.8✗Templeton< 1.0 (fixed cap; proxy for below-sector-median leverage)✗SchlossD/E < 1.00x

  Debt Levels

  ✗MungerDebt/Equity < 0.5✗AkreDebt/Equity < 0.3

  Interest Coverage & Debt/EBITDAIC=36.4x, D/EBITDA=N/A (D&A unavailable)

  ✗MarksInterest Coverage > 3x; Debt/EBITDA < 4x

  Total Debt / Shareholders Equity

  ✗Ackman<= 1.0

  Negative debt-to-equity (higher means less debt)

  ✗AsnessTop 30% of eligible cross-section
• Cash Flow10% pass✓ 2✗ 10▾

  9 of 10 flag TRVG's cash flow — Buffett, Lynch, Piotroski +6 more

  Free Cash Flow Proxy

  ✗BuffettPositive and growing

  FCF Positive and Growing

  ✗LynchPositive and growing

  Operating Cash Flow$9.1M

  ✓PiotroskiCFO > 0

  (CFO / Total Assets) vs ROACFO/Assets=2.16%, ROA=3.13%

  ✗PiotroskiCFO/Assets > ROA

  Price / (CFO / Shares)32.7x

  ✗Dreman< 8x

  P/E or FCF YieldP/E=23.6x

  ✗PabraiP/E < 15 or FCF Yield > 10%

  FCF Positive

  ✗MarksPositive FCF in majority of recent years

  (OCF - CapEx) / Market Cap

  ✗Ackman>= 4%

  Price / FCF per Share

  ✗Ackman<= 25

  Positive Operating Cash Flow frequency9/12 years positive

  ✓SleepPositive OCF in >= 70% of available years

  Operating Cash Flow - Capital Expenditures

  ✗Neff> $0 (app proxy for a strong fundamental case)

  (Operating cash flow - capex) / market capitalization

  ✗OshaughnessyTop 10% of eligible cross-section
• Profitability13% pass✓ 8✗ 27▾

  14 of 16 flag TRVG's profitability — Graham, Buffett, Lynch +11 more

  Net income / market capitalization+4.48%; #1847/6340 (top 29.1%)

  ✓AsnessTop 30% of eligible cross-section✗OshaughnessyTop 10% of eligible cross-section

  Positive EPS (10 years)3/13 years positive

  ✗GrahamPositive EPS every year for 10 years

  EPS Growth (3-yr avg, 10-yr window)

  ✗Graham>= 33% growth

  Net Income Positive (10+ years)3/13 years positive

  ✗BuffettPositive every year for 10+ years

  ROE (up to 5-year arithmetic mean)-20.9%

  ✗Buffett> 15% arithmetic mean (app rule)

  Operating Margin (10-yr trend)0.3% (latest)

  ✗BuffettStable or rising over 10 years

  Free Cash Flow Proxy

  ✗BuffettPositive and growing

  Earnings Variance (10-yr CoV)

  ✗BuffettCoV < 0.3

  Retained Earnings Effectiveness

  ✗Buffett$1 retained -> > $1 market value created

  Basic earnings-growth PEG (dividends excluded)25.62

  ✗Lynch< 1.0 (ideally < 0.5)

  3-5 Year EPS CAGR0.9%

  ✓Lynch15-30% (Fast Grower); > 0% to pass

  ROE5.3%

  ✗Lynch> 15%

  EBIT / Enterprise Value1.3%

  ✗Greenblatt> 10%

  Earnings Yield + ROC AssessmentEY=1.3%, ROC=N/A (invested capital <= 0)

  ✗GreenblattBoth EY > 10% and ROC > 25%

  Net Income / Total Assets3.13%

  ✓PiotroskiROA > 0

  ROA Change YoY-7.88% -> 3.13% (delta: +11.01%)

  ✓PiotroskiCurrent ROA > Prior ROA

  (CFO / Total Assets) vs ROACFO/Assets=2.16%, ROA=3.13%

  ✗PiotroskiCFO/Assets > ROA

  Gross Margin Change YoY97.6% -> 97.3%

  ✗PiotroskiImproved YoY

  Pre-Tax Income / Revenue1.5%

  ✗Dreman>= 8%

  Net Income / Shareholders' Equity5.3%

  ✗Dreman> 12%

  Margin of SafetyP/E=23.6x, P/B=1.2x

  ✓PabraiP/B < 1.5 or P/E < 15

  Return on Equity-27.7% (3-yr avg)

  ✗AkreROE > 20% (3-year avg)

  Discount to Intrinsic ValueN/A (negative normalized EPS)

  ✗Marks>= 20% below intrinsic value

  Positive Net Income Frequency3/12 years positive

  ✗MarksPositive net income in >= 7 of last 10 years

  Operating Income / Revenue0.3%

  ✗Ackman>= 15%

  Net Income / Shareholders Equity5.3%

  ✗Ackman>= 15%

  5-Year EPS CAGR

  ✗Templeton> 0% (5-year EPS CAGR)

  Operating Margin Trend-32.3% (2023) -> 0.3% (2025)

  ✓TempletonNon-negative operating-margin trend over 3 years

  Revenue growth vs. gross and operating margin trendgross margin 97.5% -> 97.3%, operating margin -32.3% -> 0.3%

  ✓SleepRevenue rising; gross margin flat or falling; operating margin holding

  Gross profit / total assets+148.92%; #61/3702 (top 1.6%)

  ✓AsnessTop 30% of eligible cross-section

  Net income / positive book equity+5.26%; #2428/5226 (top 46.5%)

  ✗AsnessTop 30% of eligible cross-section

  Negative 5-year standard deviation of ROA-0.1961; #4209/5884 (top 71.5%)

  ✗AsnessTop 30% of eligible cross-section

  3-5 Year Diluted EPS CAGR0.9% over 4 years

  ✗Neff7%-20% annualized

  Positive Diluted-EPS Years3/10 years positive

  ✗Schloss>= 70% positive over 5-10 observed years (app rule)
• Growth13% pass✓ 5✗ 8▾

  7 of 8 flag TRVG's growth — Graham, Lynch, Dreman +4 more

  EPS Growth (3-yr avg, 10-yr window)

  ✗Graham>= 33% growth

  Basic earnings-growth PEG (dividends excluded)25.62

  ✗Lynch< 1.0 (ideally < 0.5)

  3-5 Year EPS CAGR0.9%

  ✓Lynch15-30% (Fast Grower); > 0% to pass

  Inventory Growth vs Revenue GrowthN/A (no inventory)

  ✓LynchInventory growth < Revenue growth

  EPS Growth Direction

  ✗DremanPositive over recent years

  EPS CAGR-7.4% CAGR over 6 years

  ✗Dreman> 5% annualized

  Positive Net Income Frequency3/12 years positive

  ✗MarksPositive net income in >= 7 of last 10 years

  3yr Median Revenue Growth-5.9%

  ✗Ackman>= 5%

  Positive EPS Growth Frequency3/5 years with positive EPS growth

  ✓AckmanPositive EPS growth in >= 3 of last 5 years

  5-Year EPS CAGR

  ✗Templeton> 0% (5-year EPS CAGR)

  Revenue growth vs. gross and operating margin trendgross margin 97.5% -> 97.3%, operating margin -32.3% -> 0.3%

  ✓SleepRevenue rising; gross margin flat or falling; operating margin holding

  5-year Revenue CAGR16.3%

  ✓SleepCAGR > 7%

  3-5 Year Diluted EPS CAGR0.9% over 4 years

  ✗Neff7%-20% annualized
• Verdicts14% pass✓ 2✗ 12▾

  Split decision: 12 FAIL · 2 PASS · 2 NEUTRAL

  Overall verdict

  ✗GrahamFAIL (3/9)✗BuffettFAIL (0/9)✗LynchFAIL (2/7)•GreenblattNot ranked✓PiotroskiPASS (F-Score 4)✗DremanFAIL (2/11)✗MungerFAIL (1/4)✗PabraiFAIL (1/3)✗AkreFAIL (0/6)✗MarksFAIL (1/5)✗AckmanFAIL (2/9)✗TempletonFAIL (3/8)✓SleepPASS (3/6)•AsnessNEUTRAL (Not ranked)✗NeffFAIL (1/6)✗SchlossFAIL (1/7)•OshaughnessyNEUTRAL (Not ranked)
• Valuation15% pass✓ 7✗ 21▾

  11 of 13 flag TRVG's valuation — Graham, Lynch, Greenblatt +8 more

  Price / Book Value per Share1.2x

  ✓Dreman< 1.2x✓Templeton< 1.5x✗SchlossP/B <= 0.80x (app cutoff)

  Net income / market capitalization+4.48%; #1847/6340 (top 29.1%)

  ✓AsnessTop 30% of eligible cross-section✗OshaughnessyTop 10% of eligible cross-section

  Price / 3-yr avg EPS

  ✗Graham<= 15x

  Price-to-Book Ratio1.2x

  ✓Graham<= 1.5x

  P/E x P/B

  ✗Graham<= 22.5

  Basic earnings-growth PEG (dividends excluded)25.62

  ✗Lynch< 1.0 (ideally < 0.5)

  EBIT / Enterprise Value1.3%

  ✗Greenblatt> 10%

  Earnings Yield + ROC AssessmentEY=1.3%, ROC=N/A (invested capital <= 0)

  ✗GreenblattBoth EY > 10% and ROC > 25%

  Price / EPS23.6x

  ✗Dreman< 12x✗Templeton< 12x (fixed ceiling; proxy for the market's cheapest 40%)

  Price / (CFO / Shares)32.7x

  ✗Dreman< 8x

  Valuation ReasonablenessP/E=23.6x

  ✓MungerP/E < 25 or Owner Earnings Yield > 5%

  P/E or FCF YieldP/E=23.6x

  ✗PabraiP/E < 15 or FCF Yield > 10%

  P/B or P/E vs. Historical AverageP/E=23.6x, P/B=1.2x

  ✓MarksP/E < 15 or P/B < 2.0

  Discount to Intrinsic ValueN/A (negative normalized EPS)

  ✗Marks>= 20% below intrinsic value

  Price / FCF per Share

  ✗Ackman<= 25

  Price vs. Trailing Low154% of trailing low ($0.54)

  ✗Templeton<= 120% of trailing low (certified split-adjusted live window)

  Positive book equity / market capitalization+0.8524; #1798/6449 (top 27.9%)

  ✓AsnessTop 30% of eligible cross-section

  Price / Diluted EPS23.6x

  ✗NeffP/E <= 15x (app proxy for a P/E 40%-60% below the market)

  (EPS CAGR % + Dividend Yield %) / P/E0.04

  ✗Neff> 0.7 (Neff's published traditional edge)

  Price / Tangible Book Value per Share2.02x

  ✗SchlossP/TBV <= 1.00x (app cutoff)

  Book Value per Share Change-69.4%

  ✗SchlossLatest BVPS >= earliest BVPS over >= 3 years (app rule)

  Revenue / market capitalization+2.1935; #1009/5247 (top 19.2%)

  ✗OshaughnessyTop 10% of eligible cross-section

  (Operating cash flow - capex) / market capitalization

  ✗OshaughnessyTop 10% of eligible cross-section

  Trailing six-month price return through the evaluation date+13.08%; #1692/6202 (top 27.3%)

  ✗OshaughnessyTop 10% of eligible cross-section
• Efficiency25% pass✓ 2✗ 9▾

  6 of 8 flag TRVG's efficiency — Buffett, Greenblatt, Piotroski +3 more

  Current Ratio2.22

  ✓Graham>= 2.0

  ROIC (3-5 yr avg)-2.8%

  ✗Buffett> 10%

  ROIC - WACC-12.8%

  ✗BuffettPositive (WACC = 10%)

  EBIT / (NWC + Net Fixed Assets)N/A (invested capital <= 0)

  ✗Greenblatt> 25%

  Current Ratio Change YoY3.83 -> 2.22

  ✗PiotroskiIncreased YoY

  Revenue / Total Assets Change YoY1.53x -> 1.53x

  ✗PiotroskiImproved YoY

  Current Assets / Current Liabilities2.22

  ✓Dreman> 1.5

  Return on Invested Capital

  ✗Munger> 15%

  ROIC (high and growing)FY2023: ROIC=unavailable; FY2024: ROIC=unavailable; FY2025: ROIC=unavailable

  ✗AkreLatest 3 consecutive FYs: ROIC > 15% in each

  Reinvestment Rate x ROIC

  ✗AkreReinvestment Rate * ROIC > 10%

  ROIC (5-year)

  ✗SleepROIC > 12% in a majority of years