Travel Lodging · NYSE
Current Price
$158.91
Intrinsic Value
Use the calculator below to estimate
Run a full DCF analysis on Hyatt Hotels Corporation with auto-filled fundamentals, adjustable assumptions, and sensitivity heatmap.
Hyatt Hotels Corporation operates as a hospitality company in the United States and internationally. It operates through Owned and Leased Hotels, Americas Management and Franchising, ASPAC Management and Franchising, EAME/SW Asia Management and Franchising, and Apple Leisure Group segments. The company manages, franchises, licenses, owns, and leases portfolio of properties, consisting of full-service hotels, select service hotels, resorts, and other properties, including timeshare, fractional, residential, vacation, and condominium units. It operates its properties under the Park Hyatt, Miraval, Grand Hyatt, Alila, Andaz, The Unbound Collection by Hyatt, Destination, Hyatt Regency, Hyatt, Thompson Hotels, Hyatt Centric, Joie de Vivre, Caption by Hyatt, Hyatt House, Hyatt Place, Hyatt Ziva, Hyatt Zilara, UrCove, Hyatt Residence Club, Hyatt Residences, Hyatt Resorts, Secrets Resorts & Spas, Dreams Resorts & Spas, Breathless Resorts & Spas, Zoetry Wellness & Spa Resorts, Alua Hotels & Resorts, and Sunscape Resorts & Spas brands. As of March 31, 2022, the company's hotel portfolio consisted of approximately 540 hotels comprising 113,000 rooms worldwide. It primarily serves corporations; national, state, and regional associations; specialty market accounts, including social, government, military, educational, religious, and fraternal organizations; travel agency and luxury organizations; and a group of individual consumers. The company also operates World of Hyatt loyalty program which rewards points that can be redeemed for hotel nights and other rewards. Hyatt Hotels Corporation was founded in 1957 and is headquartered in Chicago, Illinois.
ROIC (TTM)
-3.0%
ROE (TTM)
-1.5%
FCF Yield
0.72%
Based on trailing twelve-month data, H shows a free cash flow per share of N/A and a ROIC of -3.0%, key inputs for stock valuation using the DCF method. The P/FCF ratio of N/A and FCF yield of 0.72% are important context metrics when evaluating H's stock valuation relative to peers.
The intrinsic value of H depends on assumptions about future growth rate, discount rate (WACC), and terminal value. A DCF model discounts projected free cash flows back to present value — small changes in WACC can shift the estimate by 20% or more, which is why sensitivity analysis is essential.
Whether H is undervalued depends on comparing the DCF-derived intrinsic value to the current market price of $158.91. A positive margin of safety (intrinsic value above market price) suggests potential undervaluation, but the degree of confidence depends on the reliability of your growth and discount rate assumptions.
To perform a DCF valuation on Hyatt Hotels Corporation: (1) Start with the trailing free cash flow per share as the base, (2) project future FCF growth over 5-10 years based on Travel Lodging industry trends and company fundamentals, (3) apply a discount rate (WACC) reflecting H's risk profile, and (4) add a terminal value for cash flows beyond the projection period.
DCF (Discounted Cash Flow) estimates what a company is worth today based on its future cash generation. For Hyatt Hotels Corporation, this means projecting how much free cash flow the Travel Lodging will produce over the next 5-10 years, then discounting those amounts to today's dollars. H's ROIC of -3.0% suggests the company may face challenges generating returns above its cost of capital.
WACC (Weighted Average Cost of Capital) is the discount rate in a DCF model — it reflects the minimum return investors require. For H, the capital structure and equity risk premium determine WACC. A 1% increase in WACC typically reduces the intrinsic value by 10-15%.
