Tongcheng Travel HoldingsFRA:TEM +6.72%71 Pretax Margin % is 19.08% as of Mar. 2026, which is 65% above its 10-year median of 11.53. GuruFocus rates FRA:TEM with a GF Score™ of 71/100 and a GF Value™ of €3.01 (Possible Value Trap). The stock has 3 warning signs investors should review. Among 844 Travel & Leisure companies, Tongcheng Travel Holdings ranks better than 73.82% on this metric.
The pretax margin, as know as pretax profit margin, is widely used to measure the operating efficiency of a company before deducting taxes.
The pretax margin is sometimes preferred over the net margin as tax expenditures can make profitability comparisons between companies misleading.
It is a useful tool to compare companies operating in the same sector and less effective when comparing companies from other sectors as each industry generally has different operating expenses and sales patterns.
The long term trend of the pretax margin is a good indicator of the competitiveness and health of the business.
Tongcheng Travel Holdings Pretax Margin % Related Terms
Tongcheng Travel Holdings Pretax Margin % Historical Data
* 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:TEM vs BKNG, ABNB, RCL: Pretax Margin % Comparison
For the Travel Services subindustry, Tongcheng Travel Holdings's Pretax Margin %, along with its competitors' market caps and Pretax 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.
Tongcheng Travel Holdings Pretax Margin % vs Travel & Leisure Industry
For the Travel & Leisure industry and Consumer Cyclical sector, Tongcheng Travel Holdings's Pretax Margin % distribution charts can be found below:
* The bar in red indicates where Tongcheng Travel Holdings's Pretax 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.
Tongcheng Travel Holdings (FRA:TEM) has a Pretax Margin % of 19.08% as of Mar. 2026. Pre-Tax margin is the ratio of total pre-tax income to net sales. View historical data on Tongcheng Travel Holdings and its competitors. This is 65% above median its historical median of 11.53. According to the industry distribution chart, Tongcheng Travel Holdings ranks #221 out of 844 companies in the Travel & Leisure industry, placing it in the top 26.2%.
Is Tongcheng Travel Holdings' Pretax Margin % too high?
Tongcheng Travel Holdings' current Pretax Margin % of 19.08% is 65% above median its 10-year median of 11.53. The Travel & Leisure industry median Pretax Margin % is 6.22. Tongcheng Travel Holdings' value of 19.08% is 206.8% above this industry median. Based on the distribution chart, Tongcheng Travel Holdings ranks #221 out of 844 companies in the Travel & Leisure industry, which is above the industry midpoint. Overall, Tongcheng Travel Holdings has a GF Score™ of 71/100 and is considered Possible Value Trap, reflecting its overall financial health beyond just this single metric.
How does Tongcheng Travel Holdings' Pretax Margin % compare to BKNG and ABNB?
According to the Travel & Leisure industry distribution chart, Tongcheng Travel Holdings ranks #221 out of 844 companies for Pretax Margin %. This puts Tongcheng Travel Holdings in the upper half of its industry. The industry median Pretax Margin % is 6.22. Tongcheng Travel Holdings' value of 19.08% is 206.8% above this benchmark. While the company's 10-year median is 11.53 vs. the industry median of 6.22, Tongcheng Travel Holdings 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 Pretax Margin % for a Travel & Leisure company?
The median Pretax Margin % among Travel & Leisure companies is 6.22, based on 844 companies in the industry. Companies in the top quartile (top 25%) have a Pretax Margin % significantly above this median, while those in the bottom quartile fall well below. However, Pretax Margin % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Tongcheng Travel Holdings's current Pretax Margin % of 19.08% is 206.8% 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 Pretax Margin % mean?
A high Pretax Margin % can signal that a stock is expensive relative to its fundamentals. Pre-Tax margin is the ratio of total pre-tax income to net sales. View historical data on Tongcheng Travel Holdings and its competitors. For the Travel & Leisure industry, the median Pretax Margin % is 6.22 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Tongcheng Travel Holdings's current Pretax Margin % is 19.08%, which is 65% above median its own 10-year median of 11.53. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Tongcheng Travel Holdings stock overvalued right now?
Based on GuruFocus' analysis, Tongcheng Travel Holdings (FRA:TEM) is currently considered Possible Value Trap. The stock's GF Value™ is €3.01, compared to a current price of €1.43 — trading 52.5% below its estimated fair value. The current Pretax Margin % is 19.08%, which is 65% above median its 10-year median of 11.53 and 206.8% above the Travel & Leisure industry median of 6.22. Tongcheng Travel Holdings' overall GF Score™ is 71/100 with 3 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Pretax Margin % calculated?
Pretax Margin % is calculated from a company's financial statements. For Tongcheng Travel Holdings (FRA:TEM), the current Pretax Margin % is 19.08% 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 Tongcheng Travel Holdings (FRA:TEM) Overvalued in 2026?
Based on GuruFocus' analysis, Tongcheng Travel Holdings stock appears to be undervalued.
The current stock price of €1.43 is trading 52.5% below its estimated GF Value™ of €3.01.
GuruFocus considers Tongcheng Travel Holdings to be Possible Value Trap.
Key valuation signals for FRA:TEM:
Pretax Margin %: 19.08% (65% above median its 10-year median of 11.53)
GF Value™: €3.01 vs. price of €1.43 (52.5% below fair value)
Industry Position: 206.8% above the Travel & Leisure median (#221 of 844)
No single metric tells the full story. See the FRA:TEM stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Tongcheng Travel is an online travel agency platform that provides booking services for hotel and ticketing in China. It generated 84% of its revenue from accommodation reservations and transportation ticketing in 2023. The rest came from advertising and in-house software sales. The platform provides both online and offline services in the form of call centers and travel kiosks. Tongcheng Travel was formed from the merger of Tongcheng Network and eLong in 2018. It is currently 21.38% owned by Tencent and 20.86% by Trip.com. Tongcheng targets lower-tier cities and as of 2021, 86.7% of its users are from non-first-tier cities in China and 61.7% of new paying users on Weixin were from Tier 3 or below cities in China. The company competes with Trip.com, Alibaba's Fliggy, and Meituan.
71GF Score
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