Hilton Worldwide Holdings Inc
Exchange: NYSESector: Consumer CyclicalIndustry: Lodging
Hilton is a leading global hospitality company with a portfolio of 24 world-class brands comprising more than 8,800 properties and nearly 1.3 million rooms, in 139 countries and territories. Dedicated to fulfilling its founding vision to fill the earth with the light and warmth of hospitality, Hilton has welcomed over 3 billion guests in its more than 100-year history, was named the No. 1 World's Best Workplace by Great Place to Work and Fortune and has been recognized as a global leader on the Dow Jones Sustainability Indices. Hilton has introduced industry-leading technology enhancements to improve the guest experience, including Digital Key Share, automated complimentary room upgrades and the ability to book confirmed connecting rooms. Through the award-winning guest loyalty program Hilton Honors, the more than 226 million Hilton Honors members who book directly with Hilton can earn Points for hotel stays and experiences money can't buy. With the free Hilton Honors app, guests can book their stay, select their room, check in, unlock their door with a Digital Key and check out, all from their smartphone.
Did you know?
HLT's revenue grew at a 4.1% CAGR over the last 6 years.
Current Price
$318.61
-1.68%GoodMoat Value
$241.59
24.2% overvaluedProfile
Valuation (TTM)
Market Cap$73.05B
P/E47.38
EV$82.01B
P/B—
Shares Out229.29M
P/Sales5.95
Revenue$12.28B
EV/EBITDA28.49
Hilton Worldwide Holdings Inc (HLT) Stock Analysis
GoodMoat Analysis
Hilton appears to be a high-quality business with a strong brand and scale-based moat, but its current valuation is demanding. The stock trades at a significant premium to the GoodMoat target price, suggesting a low margin of safety for a value investor.
Read full analysis
Hilton Worldwide Holdings Inc operates a global portfolio of hotel brands through a primarily franchised and managed business model, which is highly asset-light. Applying the GoodMoat framework, the company demonstrates a durable competitive advantage. Its moat is built on a powerful global brand, significant scale privileges from its massive distribution network, and high switching costs for property owners tied to its reservation system and loyalty program. This likely results in a Moat Score comfortably above the 5+ threshold required to proceed. The business also shows strong quality indicators, including a robust 22.4% operating margin and a 12.1% profit margin, though its 2.8% Free Cash Flow Yield is modest.
However, the valuation presents a major hurdle. At a price of $302.91, the stock trades at a P/E of 48.4x, which is high for a company with 7% YoY revenue growth. More critically, it sits 25% above the GoodMoat Target of $241.59. According to the Decision Framework, this indicates a negative or very thin margin of safety, placing it in the 'Unfavourable' or 'With Caution' valuation band. For a value investor, the combination of a strong underlying business but a full price suggests further investigation would focus on whether future growth can justify the premium, rather than finding a clear margin of safety today.
Analysis based on data as of 2024-05-15.
Market Cap$73.05B
Current Price$318.61
P/E Ratio47.38
Forward P/E—
PEG Ratio1.38
EPS$6.12
Book Value$-23.50
P/B Ratio—
HLT Financial Charts
FCF vs CAPEX
FCFCAPEX
Forward estimates use 8.7% FCF growth (CAGR)
Cash vs Debt
Net Debt: 12.1B
Revenue
9.5B
FY19
4.3B
FY20
5.8B
FY21
8.8B
FY22
10.2B
FY23
11.2B
FY24
12.0B
FY25
Net Income
881M
FY19
—
FY20
410M
FY21
1.3B
FY22
1.1B
FY23
1.5B
FY24
1.5B
FY25
HLT 52-Week Range
$236.07
$342.89
50-Day MA: $312.29200-Day MA: $286.58
Did you know?
HLT's revenue grew at a 4.1% CAGR over the last 6 years.
Hilton Worldwide Holdings Inc (HLT) Financial Summary
Hilton Worldwide Holdings Inc (HLT) is a Consumer Cyclical company in the Lodging industry, listed on NYSE. The stock currently trades at $318.61 with a market capitalization of $73.05B.
Key valuation metrics include a P/E ratio of 47.38, and EPS of $6.12. The company reports a profit margin of 12.6%.
HLT Key Financial Metrics
| Metric | Value |
|---|---|
| Market Cap | $73.05B |
| P/E Ratio | 47.38 |
| EPS | $6.12 |
| P/S Ratio | 5.95 |
| EV/EBITDA | 28.49 |
| Dividend Yield | 0.20% |
| Profit Margin | 12.6% |
HLT Revenue & Earnings History
| Year | Revenue | Net Income |
|---|---|---|
| FY19 | $9.45B | $881.00M |
| FY20 | $4.31B | $-715.00M |
| FY21 | $5.79B | $410.00M |
| FY22 | $8.77B | $1.25B |
| FY23 | $10.23B | $1.14B |
| FY24 | $11.17B | $1.53B |
| FY25 | $12.04B | $1.46B |
Hilton Worldwide Holdings Inc (HLT) Valuation
Based on GoodMoat's DCF model, Hilton Worldwide Holdings Inc has a fair value estimate of $241.59. At the current price of $318.61, the stock appears 31.9% overvalued relative to our intrinsic value estimate.
HLT Quality Indicators
Hilton Worldwide Holdings Inc maintains a profit margin of 12.6% and an operating margin of 22.4%. The current ratio is 0.66.
About Hilton Worldwide Holdings Inc
Hilton is a leading global hospitality company with a portfolio of 24 world-class brands comprising more than 8,800 properties and nearly 1.3 million rooms, in 139 countries and territories. Dedicated to fulfilling its founding vision to fill the earth with the light and warmth of hospitality, Hilton has welcomed over 3 billion guests in its more than 100-year history, was named the No. 1 World's Best Workplace by Great Place to Work and Fortune and has been recognized as a global leader on the Dow Jones Sustainability Indices. Hilton has introduced industry-leading technology enhancements to improve the guest experience, including Digital Key Share, automated complimentary room upgrades and the ability to book confirmed connecting rooms. Through the award-winning guest loyalty program Hilton Honors, the more than 226 million Hilton Honors members who book directly with Hilton can earn Points for hotel stays and experiences money can't buy. With the free Hilton Honors app, guests can book their stay, select their room, check in, unlock their door with a Digital Key and check out, all from their smartphone.
HLT Free Cash Flow
Hilton Worldwide Holdings Inc generated $1.94B in trailing twelve-month free cash flow, representing an FCF yield of 2.66%. This moderate FCF yield indicates reasonable cash generation.
HLT Shares Outstanding
Hilton Worldwide Holdings Inc has 0.23 billion shares outstanding at a share price of $318.61, giving it a market capitalization of $73.05B.
HLT Recent Insider Trades
Recent insider transactions at Hilton Worldwide Holdings Inc include:
| Insider | Type | Shares | Value |
|---|---|---|---|
| NASSETTA CHRISTOPHER J (See Remarks) | SELL | 30,404 | $9.62M |