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:
The table below illustrates the output of a discounted cash flow forecast using a variety of scenarios for Hilton Worldwide Holdings Inc. 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 30.33%. As for the metrics that stood out in our discounted cash flow analysis of Hilton Worldwide Holdings Inc, consider:
The stock's equity weight, or the proportion of capital from equity relative to debt, is 67. Notably, its equity weight is greater than 55.76% of US equities in the Consumer Cyclical sector yielding a positive free cash flow.
Hilton Worldwide Holdings Inc's effective tax rate, as measured by taxes paid relative to net income, is at 20 -- greater than 79.14% 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 NATH, CPRI, DECK, MOV, and WEYS.
SEC settled charges against Hilton Worldwide (HLT) for failing to fully disclose perquisites and personal benefits provided to executive officers. The company failed to disclose approximately $1.7M worth of travel-related perquisites and personal benefits provided to executive officers from 2015 through 2018, including use of Hilton’s corporate aircraft and executive officers’ hotel stays.Press...
The 11th annual Gaming & Lodging Conference from Bank of America (NYSE: BAC ) hosted ten companies. A look at the highlights from DraftKings Inc (NASDAQ: DKNG ), Penn National Gaming (NASDAQ: PENN ), and Hilton Worldwide Holdings Inc (NYSE: HLT ). Bank of America analyst Sarah C. Kelley shared takeaways from the conference on three companies. DraftKings: The resumption of the major sports has been a big catalyst for DraftKings. Kelley notes DraftKings comments had a “very strong opening weekend with the NFL season.” DraftKings also noted how newer markets are strong and New Jersey is seeing huge strength. “Management still thinks this fall will present unique customer acquisition opportunities in existing markets and recent launches such as Colorado and Illinois,” Kelley said. Other cat...
Hotel REITs, the likes of Summit Hotel Properties (INN) have been strongly hit by stay-at-home measures as a result of the pandemic with April being the worst period in terms of demand. Hence, occupancy figures for the second quarter plus revenues obtained per room were down. On a more positive...
Chetan Woodun on Seeking Alpha | September 2, 2020
[MANHATTAN] Hilton Worldwide Holdings was sued over its decision to renege on an agreement to buy a stake in ClassPass, a startup that allows users to take classes at boutique gyms without buying a membership. Read more at The Business Times.