Hilton Inc. owns, leases, manages, develops, and franchises hotels, resorts, and timeshare properties worldwide under brand names which include Hilton Hotels & Resorts, Waldorf Astoria Hotels & Resorts, Conrad Hotels & Resorts, Canopy by Hilton, Curio-A Collection by Hilton, DoubleTree by Hilton, Embassy Suites Hotels, Hilton Garden Inn, Hampton Hotels, Homewood Suites by Hilton, Home2 Suites by Hilton, and Hilton Grand Vacations. The company was founded in 1919 and is based in McLean, Virginia.
HLT Price Forecast Based on DCF Valuation
DCF Fair Value Target:
Below please find a table outlining a discounted cash flow forecast for HLT, in which we model out valuation assuming a variety of terminal growth rates. To summarize, we found that Hilton Worldwide Holdings Inc ranked in the 36th percentile in terms of potential gain offered. Our DCF analysis suggests the stock is overvalued by about 18.83%. The most interesting components of our discounted cash flow analysis for Hilton Worldwide Holdings Inc ended up being:
Hilton Worldwide Holdings Inc's weighted average cost of capital (WACC) is 7%; for context, that number is higher than just 18.5% of tickers in our DCF set.
As a business, Hilton Worldwide Holdings Inc experienced a tax rate of about 18% over the past twelve months; relative to its sector (Consumer Cyclical), this tax rate is higher than 70.5% of stocks generating free cash flow.
Terminal Growth Rate in Free Cash Flow
Return Relative to Current Share Price
For other companies in the Consumer Cyclical that have a similar discounted cashflow valuation profile (and ensuing price forecasts) as HLT, try ATR, ROST, VC, CRWS, and FL.