Trip.com GroupTCOM -15.75%79 Gross Margin % is 78.96% as of Dec. 2025, which is 1% below its 10-year median of 79.46. GuruFocus rates TCOM with a GF Score™ of 79/100 and a GF Value™ of $79.05 (Significantly Undervalued). The stock has 2 warning signs investors should review. Among 793 Travel & Leisure companies, Trip.com Group ranks better than 89.28% on this metric.
The historical rank and industry rank for Trip.com Group's Gross Margin % or its related term are showing as below:
TCOM'
s Gross Margin % Range Over the Past 10 Years
Min: 75.42 Med: 79.46 Max: 82.54
Current: 80.57
During the past 13 years, the highestGross Margin % of Trip.com Group was 82.54%. The lowest was 75.42%. And the median was 79.46%.
TCOM's Gross Margin % is ranked better than 89.28% of 793
companies
in the Travel & Leisure industry
Industry Median: 44.02
vs TCOM: 80.57
Trip.com Group had a gross margin of 78.96% for the quarter that ended in Dec. 2025 => Durable competitive advantage
The 5-Year average Growth Rate of Gross Margin for Trip.com Group was 1.10% per year.
Trip.com Group (NAS:TCOM) 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
Trip.com Group had a gross margin of 78.96% 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.
Trip.com Group Gross Margin % Related Terms
Trip.com Group Gross Margin % Historical Data
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The historical data trend for Trip.com 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.
For the Travel Services subindustry, Trip.com 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.
Trip.com Group Gross Margin % vs Travel & Leisure Industry
For the Travel & Leisure industry and Consumer Cyclical sector, Trip.com Group's Gross Margin % distribution charts can be found below:
* The bar in red indicates where Trip.com 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.
Trip.com Group (TCOM) has a Gross Margin % of 78.96% as of Dec. 2025. Gross margin is the ratio of total gross profit to net sales. View historical data on Trip.com Group and its competitors. This is near median its historical median of 79.46. Over the past decade, Trip.com Group's Gross Margin % has ranged from 75.42 to 82.54. According to the industry distribution chart, Trip.com Group ranks #85 out of 793 companies in the Travel & Leisure industry, placing it in the top 10.7%.
Is Trip.com Group's Gross Margin % too high?
Trip.com Group's current Gross Margin % of 78.96% is near median its 10-year median of 79.46. Over the past 10 years, this metric has ranged from a low of 75.42 to a high of 82.54. The Travel & Leisure industry median Gross Margin % is 44.02. Trip.com Group's value of 78.96% is 79.4% above this industry median. Based on the distribution chart, Trip.com 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, Trip.com Group has a GF Score™ of 79/100 and is considered Significantly Undervalued, reflecting its overall financial health beyond just this single metric.
How does Trip.com Group's Gross Margin % compare to EXPE and CCL?
According to the Travel & Leisure industry distribution chart, Trip.com Group ranks #85 out of 793 companies for Gross Margin %. This places Trip.com Group in the top 11% of its industry — outperforming the majority of peers. The industry median Gross Margin % is 44.02. Trip.com Group's value of 78.96% is 79.4% above this benchmark. Historically, Trip.com Group's own Gross Margin % has ranged from 75.42 to 82.54 over the past decade. While the company's 10-year median is 79.46 vs. the industry median of 44.02, Trip.com 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 44.02, 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. Trip.com Group's current Gross Margin % of 78.96% is 79.4% 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 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 Trip.com Group and its competitors. For the Travel & Leisure industry, the median Gross Margin % is 44.02 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Trip.com Group's current Gross Margin % is 78.96%, which is near median its own 10-year median of 79.46. 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 (TCOM) is currently considered Significantly Undervalued. The stock's GF Value™ is $79.05, compared to a current price of $39.01 — trading 50.7% below its estimated fair value. The current Gross Margin % is 78.96%, which is near median its 10-year median of 79.46 and 79.4% above the Travel & Leisure industry median of 44.02. Trip.com Group's overall GF Score™ is 79/100 with 2 warning signs 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 Trip.com Group (TCOM), the current Gross Margin % is 78.96% 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 Trip.com Group (TCOM) Overvalued in 2026?
Based on GuruFocus' analysis, Trip.com Group stock appears to be undervalued.
The current stock price of $39.01 is trading 50.7% below its estimated GF Value™ of $79.05.
GuruFocus considers Trip.com Group to be Significantly Undervalued.
Key valuation signals for TCOM:
Gross Margin %: 78.96% (near median its 10-year median of 79.46)
GF Value™: $79.05 vs. price of $39.01 (50.7% below fair value)
Industry Position: 79.4% above the Travel & Leisure median (#85 of 793)
No single metric tells the full story. See the TCOM 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.
79GF Score
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