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:
The table below illustrates the output of a discounted cash flow forecast using a variety of scenarios for Marriott International Inc. To summarize, we found that Marriott International Inc ranked in the 25th 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. In terms of the factors that were most noteworthy in this DCF analysis for MAR, they are:
The company's balance sheet shows it gets 68% of its capital from equity, and 32% of its capital from debt. Notably, its equity weight is greater than 69.86% of US equities in the Consumer Cyclical sector yielding a positive free cash flow.
Marriott International Inc's weighted average cost of capital (WACC) is 7%; for context, that number is higher than only 18.71% 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 GPC, CIDM, INWK, SMP, and INTG.