Marriott International operates, franchises, and licenses hotels and timeshare properties worldwide under the Marriott Vacation Club, Grand Residences by Marriott, The Ritz-Carlton Destination Club, and The Ritz-Carlton Residences brands. The company was founded in 1971 and is based in Bethesda, Maryland.
MAR Price Forecast Based on DCF Valuation
DCF Fair Value Target:
Below please find a table outlining a discounted cash flow forecast for MAR, in which we model out valuation assuming a variety of terminal growth rates. To summarize, we found that Marriott International Inc ranked in the 42th percentile in terms of potential gain offered. Our DCF analysis suggests the stock is overvalued by about 21.5%. The most interesting components of our discounted cash flow analysis for Marriott International Inc ended up being:
The company's balance sheet shows it gets 69% of its capital from equity, and 31% of its capital from debt. Its equity weight surpasses that of 64.46% of free cash flow generating stocks in the Consumer Cyclical sector.
Marriott International Inc's weighted average cost of capital (WACC) is 7%; for context, that number is higher than only 14.46% of tickers in our DCF set.
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 MAR, try DECK, ETM, CWH, GPK, and NYT.
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