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Trip.com GroupFRA:CLVB -2.23%74 Degree of Operating Leverage is 5.24 as of Mar. 2026. GuruFocus rates FRA:CLVB with a GF Score™ of 74/100 and a GF Value™ of €65.33 (Significantly Undervalued). The stock has 2 warning signs investors should review. Among 828 Travel & Leisure companies, Trip.com Group ranks worse than 76.21% on this metric.
Degree of Operating Leverage (DOL) measures the percentage change in EBIT for a unit change in Revenue.
Trip.com Group's Degree of Operating Leverage for the quarter that ended in Mar. 2026 was 5.24. The higher Degree of Operating Leverage, the higher operating risk the company will take.
The industry rank for Trip.com Group's Degree of Operating Leverage or its related term are showing as below:
FRA:CLVB's Degree of Operating Leverage is ranked worse than 76.21% of 828
companies
in the Travel & Leisure industry
Industry Median: 0.935
vs FRA:CLVB: 5.24
Trip.com Group (FRA:CLVB) Degree of Operating Leverage Explanation
Degree of Operating Leverage (DOL) is a leverage ratio that measures the sensitivity of a company’s operting income, also referred to as Earnings Before Interest and Taxes (EBIT), to fluctuations in its Revenue. DOL is a method used to quantify a company’s operating risk. This risk is related to the company's structure of variable costs and fixed costs. Since the fixed costs do not allow the company to adjust the operating costs, the operating risk rises with a higher fixed-to-variable costs proportion.
A high Degree of Operating Leverage indicates that the company’s fixed costs exceed its variable costs. By increasing the sales, the company can earn more profits. In addition, the company must be able to maintain relatively high sales to cover all fixed costs.
Be Aware
The use of operating leverage varies across different industries and business sectors, and the application of Degree of Operating Leverage (DOL) should be adjusted accordingly.
Trip.com Group Degree of Operating Leverage Related Terms
Trip.com Group Degree of Operating Leverage Historical Data
* Premium members only.
The historical data trend for Trip.com Group's Degree of Operating Leverage can be seen below:
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
FRA:CLVB vs CCL, VIK, EXPE: Degree of Operating Leverage Comparison
For the Travel Services subindustry, Trip.com Group's Degree of Operating Leverage, along with its competitors' market caps and Degree of Operating Leverage data, can be viewed below:
* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.
Trip.com Group Degree of Operating Leverage vs Travel & Leisure Industry
For the Travel & Leisure industry and Consumer Cyclical sector, Trip.com Group's Degree of Operating Leverage distribution charts can be found below:
* The bar in red indicates where Trip.com Group's Degree of Operating Leverage falls into.
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
** TTM data of EBIT and Revenue was used to calculate Degree of Operating Leverage.
*** Please be aware that the Degree of Operating Leverage calculations are based on company-level data using the primary share class. The calculated data provided is for demonstration purposes and may slightly differ from the results displayed in the title due to potential variations caused by currency exchange rate differences throughout the year.
What does a Degree of Operating Leverage of 5.24 mean?
Trip.com Group (FRA:CLVB) has a Degree of Operating Leverage of 5.24 as of Mar. 2026. Degree of Operating Leverage (DOL) measures the percentage change in EBIT for a unit change in Revenue. View historical data for Trip.com Group and its competitors. According to the industry distribution chart, Trip.com Group ranks #631 out of 828 companies in the Travel & Leisure industry, placing it in the top 76.2%.
Is Trip.com Group's Degree of Operating Leverage too high?
Trip.com Group's current Degree of Operating Leverage is 5.24. The Travel & Leisure industry median Degree of Operating Leverage is 0.94. Trip.com Group's value of 5.24 is 460.4% above this industry median. Based on the distribution chart, Trip.com Group ranks #631 out of 828 companies in the Travel & Leisure industry, which is in the bottom quartile relative to peers. Overall, Trip.com Group has a GF Score™ of 74/100 and is considered Significantly Undervalued, reflecting its overall financial health beyond just this single metric.
How does Trip.com Group's Degree of Operating Leverage compare to CCL and VIK?
According to the Travel & Leisure industry distribution chart, Trip.com Group ranks #631 out of 828 companies for Degree of Operating Leverage. This places Trip.com Group in the lower half of its industry. The industry median Degree of Operating Leverage is 0.94. Trip.com Group's value of 5.24 is 460.4% above this benchmark. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Degree of Operating Leverage for a Travel & Leisure company?
The median Degree of Operating Leverage among Travel & Leisure companies is 0.94, based on 828 companies in the industry. Companies in the top quartile (top 25%) have a Degree of Operating Leverage significantly above this median, while those in the bottom quartile fall well below. However, Degree of Operating Leverage should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Trip.com Group's current Degree of Operating Leverage of 5.24 is 460.4% above the industry median. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high Degree of Operating Leverage mean?
A high Degree of Operating Leverage can signal that a stock is expensive relative to its fundamentals. Degree of Operating Leverage (DOL) measures the percentage change in EBIT for a unit change in Revenue. View historical data for Trip.com Group and its competitors. For the Travel & Leisure industry, the median Degree of Operating Leverage is 0.94 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Trip.com Group's current Degree of Operating Leverage is 5.24. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Trip.com Group stock overvalued right now?
Based on GuruFocus' analysis, Trip.com Group (FRA:CLVB) is currently considered Significantly Undervalued. The stock's GF Value™ is €65.33, compared to a current price of €35.00 — trading 46.4% below its estimated fair value. The current Degree of Operating Leverage is 5.24 and 460.4% above the Travel & Leisure industry median of 0.94. Trip.com Group's overall GF Score™ is 74/100 with 2 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Degree of Operating Leverage calculated?
Degree of Operating Leverage is calculated from a company's financial statements. For Trip.com Group (FRA:CLVB), the current Degree of Operating Leverage is 5.24 as of Mar. 2026. GuruFocus calculates this using data sourced from SEC filings and annual reports. See the calculation section and 30-year financial data on this page for the full breakdown.
Is Trip.com Group (FRA:CLVB) Overvalued in 2026?
Based on GuruFocus' analysis, Trip.com Group stock appears to be undervalued.
The current stock price of €35.00 is trading 46.4% below its estimated GF Value™ of €65.33.
GuruFocus considers Trip.com Group to be Significantly Undervalued.
Key valuation signals for FRA:CLVB:
Degree of Operating Leverage: 5.24
GF Value™: €65.33 vs. price of €35.00 (46.4% below fair value)
Industry Position: 460.4% above the Travel & Leisure median (#631 of 828)
No single metric tells the full story. See the FRA:CLVB stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Trip.com is the largest online travel agent in China and is positioned to benefit from the country's rising demand for higher-margin outbound travel as passport penetration is only 12% in China. The company generated about 79% of sales from accommodation reservations and transportation ticketing in 2024. The rest of revenue comes from package tours and corporate travel. Before the pandemic in 2019, the company generated 25% of revenue from international travel, which is important to its margin expansion. Most of sales come from its domestic platform, but the company is expanding its overseas business. The competes in a crowded OTA industry in China, including Meituan, Alibaba-backed Fliggy, Tongcheng, and Qunar. The company was founded in 1999 and listed on the Nasdaq in December 2003.
74GF Score
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