* Note: Prices are in Million (M) USD.
Description:
Hilton Worldwide Holdings Inc., formerly Hilton Hotels Corporation, is an American multinational hospitality company that manages and franchises a broad portfolio of hotels and resorts.
These criteria used Company's Cash, EBITDA and Debt balance to determines its fair value:
Cash : $1,301 M
Debt : $12,003 M
EBITDA : $2,577 M
Net Debt (Debt - Cash): $10,702 M
Since EBITDA cannot cover net debt within 3 years, Avoid This Stock.
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: 32.86
Since Forward PE Ratio is between 25 - 35, 1 point assigned.
This criteria used Company's ability to convert Sales into free cash flow to determine fair value:
Using last 20 overlapping fiscal years (max 20).Average Free Cash Flow: $816 M
Average Revenue: $8,072 M
Revenue Converted To Free Cash Flow (%): 10.1%
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): $11,174 M
Revenue 4 Years Ago (2020-12-31): $4,307 M
Last 5 Years Average Revenue Growth: 32%
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): $248 M
Share Count 5 Years Ago (2020-12-31): $279 M
Company is buying back its own shares, 3 points assigned.
This criteria used Company's dividend payout ratio to determine its fair value:
Next Year Earnings Per Share (EPS): $8.82
Trailing 12-Month Earnings Per Share (EPS): $7.98
Average Earnings Per Share (EPS): $8.40
Dividend Per Share (DPS): $1
Payout Ratio: 7%
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 13 valid ROE years (max 20).Average ROE: 25.4%
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: $276
52-Week Low: $196
Threshold Price (15% Above 52-Week Low): $225
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: $61,691 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 3% exposure of Total Portfolio.
Value-Trade has assigned 22 points to above Hilton Worldwide Holdings Inc (HLT) stock.
Last 9 Years Avg PE 23.91, Fair Value PE 15, Industry Based PE 15, Growth Based PE 31, RCFC Based PE 18.09, ROE Based PE 30.35, Risk-Free Anchored PE (25% MoS) 17.08. Based on these 7 values, average assigned is 21.49. Value-Trades has assined P/E value 21.49. Since an average (Current Year EPS + Next Year EPS) earning per share is $8.4.
The fair value of Hilton Worldwide Holdings Inc (HLT) stock should be (21.49 x $8.4) = $180.52.
