* Note: Prices are in Million (M) USD.
Description:
Hilton Grand Vacations Inc., a timeshare company, develops, markets, sells and manages vacation-owned resorts primarily under the Hilton Grand Vacations brand. The company is headquartered in Orlando, Florida.
These criteria used Company's Cash, EBITDA and Debt balance to determines its fair value:
Cash : $328 M
Debt : $7,019 M
EBITDA : $883 M
Net Debt (Debt - Cash): $6,691 M
Since EBITDA cannot cover net debt within 3 years, Avoid This Stock.
This criteria used industry in which company operates:
Sector: Consumer Discretionary
Industry: Resorts & Casinos
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: 19.02
Since Forward PE Ratio is between 15 - 20, 3 points assigned.
This criteria used Company's ability to convert Sales into free cash flow to determine fair value:
Average Free Cash Flow: $169 M
Average Revenue: $2,264 M
Revenue Converted To Free Cash Flow (%): 7%
Avg Free Cash Flow Growth Per Year (Last 5 Years): 88.97%
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): $4,981 M
Revenue 4 Years Ago (2020-12-31): $894 M
Last 5 Years Average Revenue Growth: 91%
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): $103 M
Share Count 5 Years Ago (2020-12-31): $85 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): $2.36
Trailing 12-Month Earnings Per Share (EPS): $2.32
Average Earnings Per Share (EPS): $2.34
Dividend Per Share (DPS): $0
Payout Ratio: 0%
Dividend Yield: 0%
Since Dividend Per Share is less than or equal to 0, 0 point 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:
Average ROE: 27%
Since Average ROE is greater than 20, 5 points assigned.
This criteria used Company's current price to its 52 week low price to determines its fair value:
Current Price: $45
52-Week Low: $31
Threshold Price (15% Above 52-Week Low): $35
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: $4,733 M
Since Market Cap is less than 10B, 1 point assigned.
% Exposure to Total Portfolio
Based on the market cap, we recommend do not exceed 2% exposure of Total Portfolio.
Value-Trade has assigned 18 points to above Hilton Grand Vacations Inc (HGV) stock.
Last 6 Years Avg PE (Limited to last 6 years of EPS data) 17.44, Fair Value PE 12, Industry Based PE is 20 and Growth based PE is 45. Based on these all values average assigned is 23.61.
Value-Trades has assined P/E value 23.61. Since an average (Current Year EPS + Next Year EPS) earning per share is $2.34.
The fair value of Hilton Grand Vacations Inc (HGV) stock should be (23.61 x $2.34) = $55.25
