Hostelworld GroupLSE:HSW -0.90%82 Gross Margin % is 113.37% as of Dec. 2025, which is 43% above its 10-year median of 79.35. GuruFocus rates LSE:HSW with a GF Score™ of 82/100 and a GF Value™ of £1.46 (Modestly Undervalued). The stock has 1 warning sign investors should review. Among 793 Travel & Leisure companies, Hostelworld Group ranks better than 89.28% on this metric.
The historical rank and industry rank for Hostelworld Group's Gross Margin % or its related term are showing as below:
LSE:HSW'
s Gross Margin % Range Over the Past 10 Years
Min: 10.65 Med: 79.35 Max: 85.28
Current: 80.12
During the past 13 years, the highestGross Margin % of Hostelworld Group was 85.28%. The lowest was 10.65%. And the median was 79.35%.
LSE:HSW's Gross Margin % is ranked better than 89.28% of 793
companies
in the Travel & Leisure industry
Industry Median: 43.92
vs LSE:HSW: 80.12
Hostelworld Group had a gross margin of 113.37% for the quarter that ended in Dec. 2025 => Durable competitive advantage
The 5-Year average Growth Rate of Gross Margin for Hostelworld Group was 52.60% per year.
Hostelworld Group (LSE:HSW) Gross Margin % Explanation
Warren Buffett believes that firms with excellent long term economics tend to have consistently higher margins.
Durable competitive advantage creates a high Gross Margin % because of the freedom to price in excess of cost. Companies can be categorized by their Gross Margin %
1. Greater than 40% = Durable competitive advantage
2. Less than 40% = Competition eroding margins
3. Less than 20% = no sustainable competitive advantage
Consistency of Gross Margin is key
Hostelworld Group had a gross margin of 113.37% for the quarter that ended in Dec. 2025 => Durable competitive advantage
Be Aware
If a company loses its competitive advantages, usually its gross margin declines well before its sales declines. Watching Gross Margin % and Operating Margin % closely helps avoid value trap situations.
Hostelworld Group Gross Margin % Related Terms
Hostelworld Group Gross Margin % Historical Data
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The historical data trend for Hostelworld Group's Gross Margin % 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.
LSE:HSW vs BKNG, ABNB, RCL: Gross Margin % Comparison
For the Travel Services subindustry, Hostelworld Group's Gross Margin %, along with its competitors' market caps and Gross Margin % 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.
Hostelworld Group Gross Margin % vs Travel & Leisure Industry
For the Travel & Leisure industry and Consumer Cyclical sector, Hostelworld Group's Gross Margin % distribution charts can be found below:
* The bar in red indicates where Hostelworld Group's Gross Margin % 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.
A positive Gross Profit is only the first step for a company to make a net profit. The gross profit needs to be big enough to also cover related labor, equipment, rental, marketing/advertising, research and development and a lot of other costs in selling the products.
Hostelworld Group (LSE:HSW) has a Gross Margin % of 113.37% as of Dec. 2025. Gross margin is the ratio of total gross profit to net sales. View historical data on Hostelworld Group and its competitors. This is 43% above median its historical median of 79.35. Over the past decade, Hostelworld Group's Gross Margin % has ranged from 10.65 to 85.28. According to the industry distribution chart, Hostelworld Group ranks #85 out of 793 companies in the Travel & Leisure industry, placing it in the top 10.7%.
Is Hostelworld Group's Gross Margin % too high?
Hostelworld Group's current Gross Margin % of 113.37% is 43% above median its 10-year median of 79.35. Over the past 10 years, this metric has ranged from a low of 10.65 to a high of 85.28. The Travel & Leisure industry median Gross Margin % is 43.92. Hostelworld Group's value of 113.37% is 158.1% above this industry median. Based on the distribution chart, Hostelworld Group ranks #85 out of 793 companies in the Travel & Leisure industry, which is in the top quartile — a strong position relative to peers. Overall, Hostelworld Group has a GF Score™ of 82/100 and is considered Modestly Undervalued, reflecting its overall financial health beyond just this single metric.
How does Hostelworld Group's Gross Margin % compare to BKNG and ABNB?
According to the Travel & Leisure industry distribution chart, Hostelworld Group ranks #85 out of 793 companies for Gross Margin %. This places Hostelworld Group in the top 11% of its industry — outperforming the majority of peers. The industry median Gross Margin % is 43.92. Hostelworld Group's value of 113.37% is 158.1% above this benchmark. Historically, Hostelworld Group's own Gross Margin % has ranged from 10.65 to 85.28 over the past decade. While the company's 10-year median is 79.35 vs. the industry median of 43.92, Hostelworld Group has consistently been above the industry average. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Gross Margin % for a Travel & Leisure company?
The median Gross Margin % among Travel & Leisure companies is 43.92, based on 793 companies in the industry. Companies in the top quartile (top 25%) have a Gross Margin % significantly above this median, while those in the bottom quartile fall well below. However, Gross Margin % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Hostelworld Group's current Gross Margin % of 113.37% is 158.1% 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 Gross Margin % mean?
A high Gross Margin % can signal that a stock is expensive relative to its fundamentals. Gross margin is the ratio of total gross profit to net sales. View historical data on Hostelworld Group and its competitors. For the Travel & Leisure industry, the median Gross Margin % is 43.92 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Hostelworld Group's current Gross Margin % is 113.37%, which is 43% above median its own 10-year median of 79.35. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Hostelworld Group stock overvalued right now?
Based on GuruFocus' analysis, Hostelworld Group (LSE:HSW) is currently considered Modestly Undervalued. The stock's GF Value™ is £1.46, compared to a current price of £1.11 — trading 24.3% below its estimated fair value. The current Gross Margin % is 113.37%, which is 43% above median its 10-year median of 79.35 and 158.1% above the Travel & Leisure industry median of 43.92. Hostelworld Group's overall GF Score™ is 82/100 with 1 warning sign to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Gross Margin % calculated?
Gross Margin % is calculated from a company's financial statements. For Hostelworld Group (LSE:HSW), the current Gross Margin % is 113.37% as of Dec. 2025. 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 Hostelworld Group (LSE:HSW) Overvalued in 2026?
Based on GuruFocus' analysis, Hostelworld Group stock appears to be undervalued.
The current stock price of £1.11 is trading 24.3% below its estimated GF Value™ of £1.46.
GuruFocus considers Hostelworld Group to be Modestly Undervalued.
Key valuation signals for LSE:HSW:
Gross Margin %: 113.37% (43% above median its 10-year median of 79.35)
GF Value™: £1.46 vs. price of £1.11 (24.3% below fair value)
Industry Position: 158.1% above the Travel & Leisure median (#85 of 793)
No single metric tells the full story. See the LSE:HSW stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Hostelworld Group PLC is a social network-powered Online Travel Agent (OTA) focused on the hostel market. It has developed and promoted the Hostelworld brand, operating a two-sided marketplace focused on the hostelling category. The Hostel partners load their bed inventory to the company's platform, which it markets to customers via its website and mobile Android and iOS apps. In addition, the Hostelworld platform has a series of social features on its platform that connect travellers in hostels and cities based on their booking data. Geographically, it derives maximum revenue from Europe, followed by Asia, Africa and Oceania, and the Americas.
82GF Score
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