Travel Lodging · NYSE
Current Price
$314.50
Intrinsic Value
Use the calculator below to estimate
Run a full DCF analysis on Hilton Worldwide Holdings Inc. with auto-filled fundamentals, adjustable assumptions, and sensitivity heatmap.
Hilton Worldwide Holdings Inc., a hospitality company, engages in managing, franchising, and leasing hotels and resorts. It operates in two segments, Management and Franchise, and Ownership. The company engages in the hotel management and licensing of its brand names, trademarks, and service marks. It operates a brand portfolio of luxury, lifestyle, full service, focused service, all-suites hotel, and timeshare under the Waldorf Astoria Hotels & Resorts, LXR Hotels & Resorts, Conrad Hotels & Resorts, Signia by Hilton, NoMad, Canopy by Hilton, Graduate by Hilton, Tempo by Hilton, Motto by Hilton, Hilton Hotels & Resorts, DoubleTree by Hilton, Curio Collection by Hilton, Tapestry Collection by Hilton, Outset Collection by Hilton, Embassy Suites by Hilton, Homewood Suites by Hilton, Home2 Suites by Hilton, LivSmart Studios by Hilton, Hilton Garden Inn, Hampton by Hilton, Tru by Hilton, Spark by Hilton, Hilton Grand Vacations, Small Luxury Hotels of the World, AutoCamp, and Hilton Honors brand names. The company has operations in North America, South America, and Central America, including various Caribbean nations; Europe, the Middle East, and Africa; and the Asia Pacific. Hilton Worldwide Holdings Inc. was founded in 1919 and is headquartered in McLean, Virginia.
ROIC (TTM)
16.9%
ROE (TTM)
-29.6%
FCF Yield
3.04%
Based on trailing twelve-month data, HLT shows a free cash flow per share of N/A and a ROIC of 16.9%, key inputs for stock valuation using the DCF method. The P/FCF ratio of N/A and FCF yield of 3.04% are important context metrics when evaluating HLT's stock valuation relative to peers.
The intrinsic value of HLT 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 HLT is undervalued depends on comparing the DCF-derived intrinsic value to the current market price of $314.50. 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 Hilton Worldwide Holdings Inc.: (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 HLT'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 Hilton Worldwide Holdings Inc., 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. HLT's ROIC of 16.9% indicates strong capital efficiency, which supports higher growth assumptions in the DCF model.
WACC (Weighted Average Cost of Capital) is the discount rate in a DCF model — it reflects the minimum return investors require. For HLT, the capital structure and equity risk premium determine WACC. A 1% increase in WACC typically reduces the intrinsic value by 10-15%.
