The Webjet Limited (ASX: WEB) share price has been amongst the best performers on the ASX 200 on Wednesday.
In early afternoon trade the online travel agent's shares are up 3% to $15.67.
Why is the Webjet share price heading higher today?
Investors have been buying the company's shares on Wednesday following the release of an update ahead of its appearance at the UBS Emerging Companies Conference.
In the presentation the company provided more details around its new business venture, Umrah Holidays International.
The 51%-owned joint venture aims to be a pioneer in the online provision of religious pilgrimage travel services. Management has its eye on the 30 million religious tourists expected to visit the Kingdom of Saudi Arabia annually by 2030.
Whilst the business may not contribute to earnings in the near term, management expects it to make a meaningful EBITDA contribution to its WebBeds segment by FY 2022.
In addition to this, the company confirmed that it is on track to deliver at least $120 million EBITDA in FY 2019, which will be a year on year increase of 37%. This excludes one-offs associated with the acquisition of Destinations of the World but includes all start-up costs associated with Umrah Holidays International.
Should you invest?
I think that Webjet is one of the best growth shares on the Australian market and trading at a very attractive price of approximately 24x estimated full year earnings.
Especially given its outstanding long-term growth potential thanks to the growing popularity of its B2B and B2C brands and the continued shift to online travel booking.
Overall, I think it is well worth considering an investment in the company following this update and I would choose it ahead of rivals Flight Centre Travel Group Ltd (ASX: FLT) and Helloworld Travel Ltd (ASX: HLO), though both could also be considered buys at current levels.
