Hostelworld GroupLSE:HSW +0.91%82 Net Margin % is 12.53% as of Dec. 2025, which is 102% above its 10-year median of 6.20. 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 847 Travel & Leisure companies, Hostelworld Group ranks better than 61.16% on this metric.
The historical rank and industry rank for Hostelworld Group's Net Margin % or its related term are showing as below:
LSE:HSW'
s Net Margin % Range Over the Past 10 Years
Min: -318 Med: 6.2 Max: 12.98
Current: 7.54
LSE:HSW's Net Margin % is ranked better than 61.16% of 847
companies
in the Travel & Leisure industry
Industry Median: 4.74
vs LSE:HSW: 7.54
Hostelworld Group (LSE:HSW) Net Margin % Explanation
Although Net Income and Earnings-per-Share (EPS) are the most widely used parameter in measuring a company's profitability and valuation, it is the least reliable. The reason is that reported earnings can be manipulated easily by adjusting any numbers such as Depreciation, Depletion and Amotorization and non-recurring items.
But the long term trend of the net margin is a good indicator of the competitiveness and health of the business.
Hostelworld Group Net Margin % Related Terms
Hostelworld Group Net Margin % Historical Data
* Premium members only.
The historical data trend for Hostelworld Group's Net 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: Net Margin % Comparison
For the Travel Services subindustry, Hostelworld Group's Net Margin %, along with its competitors' market caps and Net 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 Net Margin % vs Travel & Leisure Industry
For the Travel & Leisure industry and Consumer Cyclical sector, Hostelworld Group's Net Margin % distribution charts can be found below:
* The bar in red indicates where Hostelworld Group's Net 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.
Hostelworld Group (LSE:HSW) has a Net Margin % of 12.53% as of Dec. 2025. Net margin is the ratio of total net income to net sales. View historical data on Hostelworld Group and its competitors. This is 102% above median its historical median of 6.20. According to the industry distribution chart, Hostelworld Group ranks #329 out of 847 companies in the Travel & Leisure industry, placing it in the top 38.8%.
Is Hostelworld Group's Net Margin % too high?
Hostelworld Group's current Net Margin % of 12.53% is 102% above median its 10-year median of 6.20. The Travel & Leisure industry median Net Margin % is 4.74. Hostelworld Group's value of 12.53% is 164.3% above this industry median. Based on the distribution chart, Hostelworld Group ranks #329 out of 847 companies in the Travel & Leisure industry, which is above the industry midpoint. 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 Net Margin % compare to BKNG and ABNB?
According to the Travel & Leisure industry distribution chart, Hostelworld Group ranks #329 out of 847 companies for Net Margin %. This puts Hostelworld Group in the upper half of its industry. The industry median Net Margin % is 4.74. Hostelworld Group's value of 12.53% is 164.3% above this benchmark. While the company's 10-year median is 6.20 vs. the industry median of 4.74, 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 Net Margin % for a Travel & Leisure company?
The median Net Margin % among Travel & Leisure companies is 4.74, based on 847 companies in the industry. Companies in the top quartile (top 25%) have a Net Margin % significantly above this median, while those in the bottom quartile fall well below. However, Net Margin % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Hostelworld Group's current Net Margin % of 12.53% is 164.3% 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 Net Margin % mean?
A high Net Margin % can signal that a stock is expensive relative to its fundamentals. Net margin is the ratio of total net income to net sales. View historical data on Hostelworld Group and its competitors. For the Travel & Leisure industry, the median Net Margin % is 4.74 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Hostelworld Group's current Net Margin % is 12.53%, which is 102% above median its own 10-year median of 6.20. 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 Net Margin % is 12.53%, which is 102% above median its 10-year median of 6.20 and 164.3% above the Travel & Leisure industry median of 4.74. 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 Net Margin % calculated?
Net Margin % is calculated from a company's financial statements. For Hostelworld Group (LSE:HSW), the current Net Margin % is 12.53% 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:
Net Margin %: 12.53% (102% above median its 10-year median of 6.20)
GF Value™: £1.46 vs. price of £1.11 (24.3% below fair value)
Industry Position: 164.3% above the Travel & Leisure median (#329 of 847)
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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