* Note: Prices are in Million (M) USD.
Description:
Host Hotels & Resorts, Inc. is a real estate investment trust that invests in hotels.
These criteria used Company's Cash, EBITDA and Debt balance to determines its fair value:
Cash : $490 M
Debt : $0 M
EBITDA : $1,720 M
Since Cash is greater than Total Debt, 5 points assigned.
This criteria used industry in which company operates:
Sector: Real estate
Industry: Reit - hotel & motel
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: 8.44
Since Forward PE Ratio is less than 15, 5 points 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: $461 M
Average Revenue: $4,825 M
Revenue Converted To Free Cash Flow (%): 9.6%
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): $5,684 M
Revenue 4 Years Ago (2020-12-31): $1,620 M
Last 5 Years Average Revenue Growth: 50%
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): $706 M
Share Count 5 Years Ago (2020-12-31): $706 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): $2.07
Trailing 12-Month Earnings Per Share (EPS): $2.01
Average Earnings Per Share (EPS): $2.04
Dividend Per Share (DPS): $1
Payout Ratio: 39%
Dividend Yield: 5%
Since company Payout Ratio is less than 50, 2 points assigned.
Since Dividend Yield is greater than 5, 5 points assigned.
This criteria used Company's Return On Equity (ROE%) to determine its fair value:
Using last 20 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: $17
52-Week Low: $12
Threshold Price (15% Above 52-Week Low): $14
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: $10,655 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 29 points to above Host Hotels & Resorts Inc (HST) stock.
Heads up: One or more P/E inputs look exaggerated and may skew the blend.
• Growth Based PE
50.00 (>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 13 Years Avg P/E (20.24)
× EPS ($2.04) = $41.29.
Last 13 Years Avg PE 20.24, Fair Value PE 15, Industry Based PE 20, Growth Based PE 50, RCFC Based PE 17.65, ROE Based PE 14.97, Risk-Free Anchored PE (25% MoS) 17.08. Based on these 7 values, average assigned is 22.13. Value-Trades has assined P/E value 22.13. Since an average (Current Year EPS + Next Year EPS) earning per share is $2.04.
The fair value of Host Hotels & Resorts Inc (HST) stock should be (22.13 x $2.04) = $45.16.
