Hilton Grand Vacations Company, LLC. is a division of Hilton Worldwide. Based in Orlando, Fla, Hilton Grand Vacations develops, markets and operates a system of brand name, vacation ownership resorts in select vacation destinations. The company also manages and operates two club membership programs: Hilton Grand Vacations Club® and The Hilton Club®, providing exclusive exchange, leisure travel, and reservation services.
HGV Price Forecast Based on DCF Valuation
DCF Fair Value Target:
The table below illustrates the output of a discounted cash flow forecast using a variety of scenarios for Hilton Grand Vacations Inc. To summarize, we found that Hilton Grand Vacations Inc ranked in the 34th percentile in terms of potential gain offered. We should note, though, that all scenearios modelled for this stock suggest it is overvalued. In terms of the factors that were most noteworthy in this DCF analysis for HGV, they are:
44% of the company's capital comes from equity, which is greater than only 22.96% of stocks in our cash flow based forecasting set.
Hilton Grand Vacations Inc's weighted average cost of capital (WACC) is 7%; for context, that number is higher than merely 5.94% of tickers in our DCF set.
Relative to other stocks in its sector (Consumer Cyclical), Hilton Grand Vacations Inc has a reliance on debt greater than 68.15% of them.
Terminal Growth Rate in Free Cash Flow
Return Relative to Current Share Price
Want more companies with a valuation profile/forecast similar to that of Hilton Grand Vacations Inc? See FNKO, IGT, PVH, TSQ, and ALV.
A potential rapid recovery in consumer demand for vacation ownership could drive upside to the shares of Wyndham Destinations Inc (NYSE: WYND ) and Hilton Grand Vacations Inc (NYSE: HGV ), according to Goldman Sachs. The Wyndham, Hilton Grand Analyst: Stephen Grambling upgraded Wyndham Destinations from Neutral to Buy and lifted the price target from $28 to $36. The analyst upgraded Hilton Grand Vacations from Neutral to Buy and raised the price target from $22.50 to $29. The Wyndham, Hilton Grand Takeaways: Both companies have high … Full story available on Benzinga.com
Hilton Grand Vacations Inc. (HGV) Q2 2020 Earnings Conference Call July 30, 2020, 11:00 AM ET Company Participants Mark Melnyk - VP of IR Mark Wang - President and CEO Dan Mathewes - CFO Conference Call Participants Jared Shojaian - Wolfe Research Brandt Montour - JPMorgan Stephen Grambling - Goldman...
Thank you, operator, and welcome to the Hilton Grand Vacations' Second Quarter 2020 Earnings Call. As a reminder, our discussions this morning will include forward-looking statements. Actual results could differ materially from those indicated by these forward-looking statements, and these statements are effective only as of today.