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:
Below please find a table outlining a discounted cash flow forecast for HGV, in which we model out valuation assuming a variety of terminal growth rates. To summarize, we found that Hilton Grand Vacations Inc ranked in the 6th percentile in terms of potential gain offered. We should note, though, that all scenearios modelled for this stock suggest it is overvalued. The most interesting components of our discounted cash flow analysis for Hilton Grand Vacations Inc ended up being:
The company's compound free cash flow growth rate over the past 4.41 years comes in at -0.2%; that's greater than only 7.93% of US stocks we're applying DCF forecasting to.
Hilton Grand Vacations Inc's effective tax rate, as measured by taxes paid relative to net income, is at 0 -- greater than only 0% of US stocks with positive free cash flow.
Relative to other stocks in its sector (Consumer Cyclical), Hilton Grand Vacations Inc has a reliance on debt greater than 65.02% 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 JAKK, MAT, TAST, TV, and DIS.
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A couple of months ago we published an article listing the best timeshare stocks to buy according to hedge funds. The biggest publicly traded companies in this industry are Wyndham Destinations, Inc. (WYND), Hilton Grand Vacations Inc. (HGV), and Marriott Vacations Worldwide Corporation (VAC). WYND shares are up more than 13%, HGV shares are up 16%, […]