Hilton Worldwide Valuation

HLT Stock  USD 214.34  1.30  0.61%   
At this time, the firm appears to be undervalued. Hilton Worldwide Holdings retains a regular Real Value of $242.38 per share. The prevalent price of the firm is $214.34. Our model calculates the value of Hilton Worldwide Holdings from evaluating the firm fundamentals such as Shares Outstanding of 252.16 M, return on asset of 0.0916, and Profit Margin of 0.26 % as well as inspecting its technical indicators and probability of bankruptcy. In general, most investors encourage acquiring undervalued assets and selling overvalued assets since, at some point, asset prices and their ongoing real values will come together.
Enterprise Value
63 B
Enterprise Value Ebitda
27.3731
Price Sales
12.187
Forward PE
29.9401
Trailing PE
49.3148
Undervalued
Today
214.34
Please note that Hilton Worldwide's price fluctuation is very steady at this time. Calculation of the real value of Hilton Worldwide Holdings is based on 3 months time horizon. Increasing Hilton Worldwide's time horizon generally increases the accuracy of value calculation and significantly improves the predictive power of the methodology used.
Our valuation method for Hilton Worldwide Holdings is useful when determining the fair value of the Hilton stock, which is usually determined by what a typical buyer is willing to pay for full or partial control of Hilton Worldwide. Since Hilton Worldwide is currently traded on the exchange, buyers and sellers on that exchange determine the market value of Hilton Stock. However, Hilton Worldwide's intrinsic value may or may not be the same as its current market price, in which case there is an opportunity to profit from the mispricing, assuming the market price will eventually merge with its intrinsic value.
Historical Market  214.34 Real  242.38 Target  164.63 Hype  214.34 Naive  213.5
The real value of Hilton Stock, also known as its intrinsic value, is the underlying worth of Hilton Worldwide Holdings Company, which is reflected in its stock price. It is based on Hilton Worldwide's financial performance, assets, liabilities, growth prospects, management team, or industry conditions. The intrinsic value of Hilton Worldwide's stock can be calculated using various methods such as discounted cash flow analysis, price-to-earnings ratio, or price-to-book ratio. That value may differ from its current market price, which is determined by supply and demand factors such as investor sentiment, market trends, news, and other external factors that may influence Hilton Worldwide's stock price. It is important to note that the real value of any stock may change over time based on changes in the company's performance.
192.91
Downside
242.38
Real Value
243.24
Upside
Estimating the potential upside or downside of Hilton Worldwide Holdings helps investors to forecast how Hilton stock's addition to their portfolios will impact the overall performance. We also use other valuation drivers to help us estimate the true value of Hilton Worldwide more accurately as focusing exclusively on Hilton Worldwide's fundamentals will not take into account other important factors:
Earnings
Estimates (0)
LowProjectedHigh
1.381.421.44
Details
Hype
Prediction
LowEstimatedHigh
213.48214.34215.20
Details
Potential
Annual Dividend
LowForecastedHigh
0.350.350.35
Details
19 Analysts
Consensus
LowTarget PriceHigh
149.81164.63182.74
Details

Hilton Worldwide Investments

(240.35 Million)

Hilton Worldwide Valuation Ratios as Compared to Competition

Comparative valuation techniques use various fundamental indicators to help in determining Hilton Worldwide's current stock value. Our valuation model uses many indicators to compare Hilton Worldwide value to that of its competitors to determine the firm's financial worth. You can analyze the relationship between different fundamental ratios across Hilton Worldwide competition to find correlations between indicators driving Hilton Worldwide's intrinsic value. More Info.
Hilton Worldwide Holdings is one of the top stocks in price to sales category among related companies. It is rated below average in beta category among related companies totaling about  0.10  of Beta per Price To Sales. The ratio of Price To Sales to Beta for Hilton Worldwide Holdings is roughly  9.70 . Comparative valuation analysis is a catch-all model that can be used if you cannot value Hilton Worldwide by discounting back its dividends or cash flows. This model doesn't attempt to find an intrinsic value for Hilton Worldwide's Stock . Still, instead, it compares the stock's price multiples to a benchmark or nearest competition to determine if the stock is relatively undervalued or overvalued. The reason why the comparable model can be used in almost all circumstances is due to the vast number of multiples that can be utilized, such as the price-to-earnings (P/E), price-to-book (P/B), price-to-sales (P/S), price-to-cash flow (P/CF), and many others. The P/E ratio is the most commonly used of these ratios because it focuses on the Hilton Worldwide's earnings, one of the primary drivers of an investment's value.
Please note that valuation analysis is one of the essential comprehensive assessments in business. It evaluates Hilton Worldwide's worth, which you can determine by considering its current assets, liabilities and future cash flows. The investors' valuation analysis is an important metric that will give you a perspective on different companies. It helps you know the worth of the potential investment in Hilton Worldwide and how it compares across the competition.

About Hilton Worldwide Valuation

The stock valuation mechanism determines the current worth of Hilton Worldwide Holdings on a weekly basis. We use both absolute as well as relative valuation methodologies to arrive at the intrinsic value of Hilton Worldwide Holdings. In general, an absolute valuation paradigm, as applied to this company, attempts to find the value of Hilton Worldwide Holdings based exclusively on its fundamental and basic technical indicators. By analyzing Hilton Worldwide's financials, quarterly and monthly indicators, and its related drivers such as dividends, operating cash flow, and various types of growth rates, we attempt to find the most accurate representation of Hilton Worldwide's intrinsic value. In some cases, mostly for established, large-cap companies, we also incorporate more traditional valuation methods such as dividend discount, discounted cash flow, or asset-based models. As compared to an absolute model, our relative valuation model uses a comparative analysis of Hilton Worldwide. We calculate exposure to Hilton Worldwide's market risk, different technical and fundamental indicators, relevant financial multiples and ratios, and then comparing them to Hilton Worldwide's related companies.
Last ReportedProjected for 2024
Gross Profit2.9 B2.1 B
Pretax Profit Margin 0.17  0.17 
Operating Profit Margin 0.22  0.11 
Net Profit Margin 0.11  0.12 
Gross Profit Margin 0.29  0.20 

8 Steps to conduct Hilton Worldwide's Valuation Analysis

Company's valuation is the process of determining the worth of any company in monetary terms. It estimates Hilton Worldwide's potential worth based on factors such as financial performance, market conditions, growth prospects, and overall economic environment. The result of company valuation is a single number representing a Company's current market value. This value can be used as a benchmark for various financial transactions such as mergers and acquisitions, initial public offerings (IPOs), or private equity investments. To conduct Hilton Worldwide's valuation analysis, follow these 8 steps:
  • Gather financial information: Obtain Hilton Worldwide's financial statements, including balance sheets, income statements, and cash flow statements.
  • Determine Hilton Worldwide's revenue streams: Identify Hilton Worldwide's primary sources of revenue, including products or services offered, target markets, and pricing strategies.
  • Analyze market data: Research Hilton Worldwide's industry and market trends, including the size of the market, growth rate, and competition.
  • Establish Hilton Worldwide's growth potential: Evaluate Hilton Worldwide's management, business model, and growth potential.
  • Determine Hilton Worldwide's financial performance: Analyze its financial statements to assess its historical performance and future potential.
  • Choose a valuation method: Consider the Company's specific circumstances and choose an appropriate valuation method, such as the discounted cash flow (DCF) or comparable analysis method.
  • Calculate the value: Apply the chosen valuation method to the financial information and market data to calculate Hilton Worldwide's estimated value.
  • Review and adjust: Review the results and make necessary adjustments, considering any relevant factors that may have been missed or overlooked.
Note: This is a general outline, and different approaches and methods may be used depending on the type and size of the company being valued. We also recomment to seek professional assistance to ensure accuracy.
Hilton Worldwide's stock price is the clearest measure of market expectations about its performance. Without stock valuation, investors cannot independently discern whether Hilton Worldwide's value is low or high relative to the company's performance and growth projections. Determining the market value of Hilton Worldwide can be done in different ways, such as multiplying its stock price by its outstanding shares.
A single share of Hilton Worldwide represents a small ownership stake in the entity. As a stockholder of Hilton, your percentage of company ownership is determined by dividing the number of shares you own by the total number of shares outstanding and then multiplying that amount by 100. Owning stock in a company generally confers both corporate voting rights and income from any dividends paid to the stock owner.

Hilton Worldwide Dividends Analysis For Valuation

Dividend Payout Ratio is likely to gain to 0.23 in 2024, despite the fact that Dividends Paid is likely to grow to (150.1 M). . Price Earnings Ratio is likely to gain to 42.90 in 2024, whereas Retained Earnings are likely to drop (4.4 B) in 2024.
Last ReportedProjected for 2024
Dividends Paid-158 M-150.1 M
Dividend Yield 0  0 
Dividend Payout Ratio 0.14  0.23 
Dividend Paid And Capex Coverage Ratio(21.87)(20.77)
There are various types of dividends Hilton Worldwide can pay to its shareholders, and the actual value of the dividend is determined on a per-share basis. It is to be paid equally to all of Hilton shareholders on a specific date, known as the payable date. The cash dividend is the most common type of dividend payment - it is the payment of actual cash from Hilton Worldwide Holdings directly to its shareholders. There are other types of dividends that companies can issue, such as stock dividends or asset dividends. When Hilton pays a dividend, it has no impact on its enterprise value. It does, however, lowers the Equity Value of Hilton Worldwide by the value of the dividends paid out.

Hilton Worldwide Growth Indicators

Growth stocks usually refer to those companies expected to grow sales and earnings faster than the market average. Growth stocks typically don't pay dividends, often look expensive, and usually trading at a high P/E ratio. Nevertheless, such valuations could be relatively cheap if the company continues to grow, which will drive the share price up. However, since most investors are paying a high price for a growth stock, based on expectations, if those expectations are not fully realized, growth stocks can see dramatic declines. Note, investing in growth stocks can be very risky. If the company such as Hilton Worldwide does not do well, investors take a loss on the stock when it is time to sell. Also, because growth stocks typically do not pay dividends, the only opportunity an investor has to make money on their investment is when they eventually sell their shares.
Common Stock Shares Outstanding264 M
Quarterly Earnings Growth Y O Y-0.525
Forward Price Earnings29.9401

Hilton Worldwide Current Valuation Indicators

Valuation refers to the process of determining the present value of Hilton Worldwide Holdings and all of its assets. It can be calculated using a number of techniques. As many analysts who try to value Hilton we look at many different elements of the entity such as Hilton's management, its prospective future earnings, the current market value of the company's assets, as well as its capital structure formation. Hilton Worldwide's valuation analysis is also a process of estimating the intrinsic value of all assets and outstanding equities. There are different methodologies and models we use to develop the final Hilton Worldwide's valuation. The techniques such as discounted cash flow and fundamental indicators such as book value per share or market capitalization are well known and widely used across most financial advisers and money managers.
Valuations are an essential part of business, for companies themselves, but also for investors. For companies, such as Hilton Worldwide, valuations can help measure their progress and success and can help them track their performance in the market compared to others. In addition, investors can use Hilton Worldwide's valuations to help determine the worth of potential investments. They can do this by using data and information made public by a company. Regardless of who the valuation is for, it essentially describes Hilton Worldwide's worth.
When determining whether Hilton Worldwide Holdings is a good investment, qualitative aspects like company management, corporate governance, and ethical practices play a significant role. A comparison with peer companies also provides context and helps to understand if Hilton Stock is undervalued or overvalued. This multi-faceted approach, blending both quantitative and qualitative analysis, forms a solid foundation for making an informed investment decision about Hilton Worldwide Holdings Stock. Highlighted below are key reports to facilitate an investment decision about Hilton Worldwide Holdings Stock:
Check out Risk vs Return Analysis to better understand how to build diversified portfolios, which includes a position in Hilton Worldwide Holdings. Also, note that the market value of any company could be tightly coupled with the direction of predictive economic indicators such as signals in bureau of economic analysis.
You can also try the Idea Optimizer module to use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio .

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Is Hilton Worldwide's industry expected to grow? Or is there an opportunity to expand the business' product line in the future? Factors like these will boost the valuation of Hilton Worldwide. If investors know Hilton will grow in the future, the company's valuation will be higher. The financial industry is built on trying to define current growth potential and future valuation accurately. All the valuation information about Hilton Worldwide listed above have to be considered, but the key to understanding future value is determining which factors weigh more heavily than others.
Quarterly Earnings Growth
(0.53)
Dividend Share
0.6
Earnings Share
4.32
Revenue Per Share
16.824
Quarterly Revenue Growth
0.071
The market value of Hilton Worldwide Holdings is measured differently than its book value, which is the value of Hilton that is recorded on the company's balance sheet. Investors also form their own opinion of Hilton Worldwide's value that differs from its market value or its book value, called intrinsic value, which is Hilton Worldwide's true underlying value. Investors use various methods to calculate intrinsic value and buy a stock when its market value falls below its intrinsic value. Because Hilton Worldwide's market value can be influenced by many factors that don't directly affect Hilton Worldwide's underlying business (such as a pandemic or basic market pessimism), market value can vary widely from intrinsic value.
Please note, there is a significant difference between Hilton Worldwide's value and its price as these two are different measures arrived at by different means. Investors typically determine if Hilton Worldwide is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, Hilton Worldwide's price is the amount at which it trades on the open market and represents the number that a seller and buyer find agreeable to each party.