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To: Boplicity who wrote (13399)	5/1/2001 9:03:54 PM
From: jhg_in_kc	Read Replies (2) of 13572

how do you compare this to EXPE? any thoughts? It's your fault i bot PCLN <g> To:Donny Brasco who wrote (2567) From: Youlu Zheng Tuesday, May 1, 2001 6:48 PM View Replies (1) \| Respond to of 2569 Priceline is still way undervalued. A quick comparison among the companies in the same industry shows: Company: Revenue Employees Market Cap Priceline (PCLN): $1.2b 344 $1.3 b Travelocity (TVLY): $0.238b 1300 $1.7 b Expedia (EXPE): $0.336b 571 $1.5 b Amazon (AMZN): $2.9b 9000 $6.1 b With Priceline’s Strengths: o 10 million of captive customers. Every Priceline customer, unlike Expedia, Travelocity, or other businesses, has a clear goal to make a deal through Priceline o Gross profit margin 16% o Extremely efficient business model with a total head count of 344 with $3.13 million revenue generated by each employee because high degree of automation o The mortgage/refinance and car business started not long ago are very appropriate for the Name-Your-Price model, and are extremely lucrative with a minimum several thousand dollar commission for each transaction o Extremely low price/revenue (about 1) compared to others in the same industry o $150 m cash in hand o Sellers prefer to use the Name-Your-Price model because the low price a customer individually receives is not known by the public, thus avoiding jeopardizing their normal price structure o Very good business model in a slow economical situation because customers want to save money One can easily concludes that if Priceline catches up to the same Cap/Revenue ratio of TVLY even without considering the potential higher profit margin, PCLN should be valued at about $8.5 b or $42.5 per share.

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