Hyatt Hotels Corporation (H) Stock Valuation — DCF Analysis
Travel Lodging · NYSE
Current Price
$199.36
Intrinsic Value
Outside reliable range
COMPETITIVE MOAT
↑World of Hyatt Loyalty Program
The World of Hyatt program fosters strong customer loyalty through exclusive member savings and bonus point opportunities. This encourages repeat business and a preference for Hyatt brands.
↑Brand Diversification and Niche Markets
Hyatt's portfolio spans luxury to lifestyle brands, catering to diverse traveler needs. This allows them to capture different market segments and reduce reliance on a single customer type.
↑Strategic Partnerships and Alliances
Collaborations with airlines and other travel providers enhance the value proposition for World of Hyatt members. These alliances expand reach and offer integrated travel experiences.
INVESTMENT RISKS
↓Intense Industry Competition
The travel lodging industry is highly competitive with numerous global and regional players. Hyatt faces constant pressure from established brands and new entrants.
↓Economic Sensitivity and Travel Demand
Hotel occupancy and pricing are directly tied to economic conditions and consumer discretionary spending. Downturns can significantly impact revenue and profitability.
↓Operational Costs and Labor
Rising labor costs, supply chain issues, and inflation can squeeze profit margins. Managing these operational expenses is a continuous challenge.
Base case
H base case valuation
Base case assumptions: 20.0% annual growth, 10.0% discount rate, 30x exit multiple, 5 year projection. Data as of 2026-06-12.
This base case uses default assumptions and is not financial advice. The intrinsic value changes significantly when the growth rate or discount rate changes. Open the calculator to set your own assumptions and see the full sensitivity range.
Customize the H valuation
Adjust the growth rate, discount rate, and exit multiple to see how the intrinsic value and margin of safety for Hyatt Hotels Corporation respond.
Open DCF Calculator for HCompany Overview
Hyatt Hotels Corporation functions as an international hospitality firm, managing a diverse portfolio of properties across the United States and numerous global markets. Its operational structure encompasses Owned and Leased Hotels, along with regional management and franchising divisions for the Americas, Asia-Pacific (ASPAC), and Europe, Africa, Middle East, and Southwest Asia (EAME/SW Asia), complemented by the Apple Leisure Group. The company actively manages, franchises, licenses, owns, and leases an extensive array of accommodations, ranging from full-service and select-service hotels to resorts, timeshares, fractional ownerships, residential, vacation, and condominium units. Hyatt boasts a wide collection of brands, including 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. As of March 31, 2022, Hyatt's global presence comprised roughly 540 hotels, offering a total of approximately 113,000 rooms. The corporation serves a broad spectrum of guests, from corporate clients and various associations (including national, state, regional, social, governmental, military, educational, religious, and fraternal organizations) to travel agencies, luxury travel organizations, and individual consumers. Additionally, Hyatt operates the "World of Hyatt" loyalty program, enabling members to earn and redeem points for hotel stays and other rewards. Founded in 1957, Hyatt Hotels Corporation maintains its headquarters in Chicago, Illinois.
Financial Metrics — H Stock Valuation Data
Revenue/Share (TTM)
$65.87
FCF/Share (TTM)
$0.67
ROIC (TTM)
-1.9%
ROE (TTM)
-1.0%
P/FCF
301.0x
EV/EBITDA
31.3x
FCF Yield
0.33%
Debt/Equity
1.40x
Based on trailing twelve-month data, H shows a free cash flow per share of $0.67 and a ROIC of -1.9%, key inputs for stock valuation using the DCF method. The P/FCF ratio of 301.0x and FCF yield of 0.33% are important context metrics when evaluating H's stock valuation relative to peers.
Frequently Asked Questions
What is the intrinsic value of H?
Hyatt Hotels Corporation currently generates $0.67 in free cash flow per share. At the current price of $199.36, a DCF model would discount these cash flows at an appropriate WACC and apply a terminal growth rate to arrive at an intrinsic value. The result depends heavily on your growth and discount rate assumptions — a 1% change in WACC typically shifts the fair value estimate by 10-15%. In MiniValuator the model uses a single discount rate that you can edit directly, 10% by default, rather than a computed WACC.
Is H undervalued?
H trades at a P/FCF ratio of 301.0x with a free cash flow yield of 0.33%. This elevated P/FCF suggests the market is pricing in significant future growth. However, whether H is truly undervalued requires comparing the DCF intrinsic value to the current market price and evaluating whether the margin of safety is sufficient for your risk tolerance.
How do I value H stock using DCF?
To perform a DCF valuation on Hyatt Hotels Corporation: (1) Start with the trailing free cash flow per share ($0.67) 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 — with a debt-to-equity of 1.40x, capital structure is an important factor, and (4) add a terminal value for cash flows beyond the projection period.
What is DCF valuation and how does it apply to H?
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 company will produce over the next 5-10 years, shaped by Travel Lodging trends, then discounting those amounts to today's dollars. H's ROIC of -1.9% suggests the company may face challenges generating returns above its cost of capital.
How does WACC affect H stock valuation?
WACC (Weighted Average Cost of Capital) is the discount rate in a DCF model — it reflects the minimum return investors require. For H, with a debt-to-equity ratio of 1.40x, the capital structure directly influences WACC. A 1% increase in WACC typically reduces the intrinsic value by 10-15%. At an EV/EBITDA of 31.3x, the market's implied discount rate can be reverse-engineered for comparison. In MiniValuator you set this discount rate yourself as a single editable number, 10% by default, instead of computing a formal WACC.
Learn More
- See H PE Valuation → — Earnings-based stock valuation using PE ratio analysis
- DCF Methodology — Step-by-step guide to discounted cash flow analysis
- PE Methodology — Guide to PE ratio stock valuation
- WACC — Understanding the discount rate used in DCF
- Margin of Safety — How to evaluate downside protection
- Intrinsic Value — How to evaluate stock fair value
- How to Calculate Intrinsic Value — Complete guide for investors
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All Consumer Cyclical valuationsDCF and P/E value H with different methods and assumptions, so the two conclusions can differ. Compare the P/E fair value.
Price as of 2026-06-12. Financial data from Financial Modeling Prep (trailing twelve months) · Valuation methodology by Charlie Wang.
This is an estimate, not investment advice.