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:
We started the process of determining a valid price forecast for Hilton Worldwide Holdings Inc with a discounted cash flow analysis -- the results of which can be found in the table below. To summarize, we found that Hilton Worldwide Holdings Inc ranked in the 14th percentile in terms of potential gain offered. We should note, though, that the most conservative analysis suggests this stock will yield negative results -- and thus may be a potential short opportunity. The most interesting components of our discounted cash flow analysis for Hilton Worldwide Holdings Inc ended up being:
Its compound free cash flow growth rate, as measured over the past 5.52 years, is -0.04% -- higher than just 19.75% of stocks in our DCF forecasting set.
As a business, HLT is generating more cash flow than 83.28% of positive cash flow stocks in the Consumer Cyclical.
Hilton Worldwide Holdings Inc's effective tax rate, as measured by taxes paid relative to net income, is at 0 -- greater than merely 0% of US stocks with positive 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 MYE, RL, BBBY, DIN, and EVC.
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