* Note: Prices are in Million (M) USD.
Description:
Hyatt Hotels Corporation is a hotel company in the United States and internationally. The company is headquartered in Chicago, Illinois.
These criteria used Company's Cash, EBITDA and Debt balance to determines its fair value:
Cash : $846 M
Debt : $0 M
EBITDA : $496 M
Since Cash is greater than Total Debt, 5 points assigned.
This criteria used industry in which company operates:
Sector: Consumer cyclical
Industry: Lodging
Based on industry, 3 points assigned.
This criteria used Company's Price To Earning (P/E) Ratio to determines its fair value:
Forward PE Ratio: 57.71
Since Forward PE Ratio is greater than 35, 0 point assigned.
This criteria used Company's ability to convert Sales into free cash flow to determine fair value:
Using last 18 overlapping fiscal years (max 20).Average Free Cash Flow: $128 M
Average Revenue: $4,328 M
Revenue Converted To Free Cash Flow (%): 3.0%
Since Free Cash Flow (FCF) to Revenue percentage is less than 15, 1 point assigned.
This criteria used company's growth potential to calculate its fair value:
Latest Revenue (2024-12-31): $6,648 M
Revenue 4 Years Ago (2020-12-31): $2,066 M
Last 5 Years Average Revenue Growth: 44%
Since Revenue Growth is greater than 20, 5 points assigned.
This criteria used Company's ability to buy back its own share:
Latest Share Count (2024-12-31): $102 M
Share Count 5 Years Ago (2020-12-31): $101 M
Company is not buying back its own shares, 0 points assigned.
This criteria used Company's dividend payout ratio to determine its fair value:
Next Year Earnings Per Share (EPS): $2.81
Trailing 12-Month Earnings Per Share (EPS): $2.19
Average Earnings Per Share (EPS): $2.50
Dividend Per Share (DPS): $1
Payout Ratio: 24%
Dividend Yield: 0%
Since company Payout Ratio is less than 50, 2 points assigned.
Since Dividend Yield is less than 1, 0 point assigned.
This criteria used Company's Return On Equity (ROE%) to determine its fair value:
Using last 18 valid ROE years (max 20).Average ROE: 6.2%
Since Average ROE is less than 10, 1 point assigned.
This criteria used Company's current price to its 52 week low price to determines its fair value:
Current Price: $144
52-Week Low: $102
Threshold Price (15% Above 52-Week Low): $118
Since Current price is not within 15% threshold, 0 point assigned.
This criteria used Company's Market Cap to determines its fair value:
Market Capitalization: $13,434 M
Since Market Cap is between 10B - 100B, 2 points assigned.
% Exposure to Total Portfolio
Based on the market cap, we recommend do not exceed 0.20% exposure of Total Portfolio.
Value-Trade has assigned 19 points to above Hyatt Hotels Corporation (H) stock.
Heads up: One or more P/E inputs look exaggerated and may skew the blend.
• Last 8 Years Avg PE
39.61 (>2× median)
• Growth Based PE
44.00 (>2× median)
Further research is recommended; please use your own due diligence.In such cases, multiplying earnings by the long-run average P/E typically gives a closer, more reliable fair value.
Rule of thumb: Last 8 Years Avg P/E (39.61)
× EPS ($2.50) = $99.03.
Last 8 Years Avg PE 39.61, Fair Value PE 12, Industry Based PE 15, Growth Based PE 44, RCFC Based PE 12.37, ROE Based PE 14.96, Risk-Free Anchored PE (25% MoS) 17.08. Based on these 7 values, average assigned is 22.15. Value-Trades has assined P/E value 22.15. Since an average (Current Year EPS + Next Year EPS) earning per share is $2.5.
The fair value of Hyatt Hotels Corporation (H) stock should be (22.15 x $2.5) = $55.37.
