Travel Lodging · NYSE
Current Price
$163.07
PE Ratio (TTM)
189.6x
Intrinsic Value
Outside reliable range
COMPETITIVE MOAT
↑Strong Brand Recognition
Hyatt's established brands like Park Hyatt and Grand Hyatt foster customer loyalty and command premium pricing. This recognition drives repeat business and attracts new guests seeking quality experiences.
↑Loyalty Program Engagement
The World of Hyatt loyalty program incentivizes repeat stays and spending. Members accrue points and enjoy exclusive benefits, creating switching costs and a predictable revenue stream.
↑Global Development Pipeline
Hyatt's expanding portfolio, including new affiliations like in Guyana, diversifies its geographic presence. This growth strategy strengthens its market position and offers a wider range of options to travelers.
INVESTMENT RISKS
↓Rich Valuation and Market Sentiment
A high earnings multiple and recent stock price declines suggest market concerns about valuation. Future growth must consistently meet or exceed expectations to justify current pricing.
↓Project Delays and Execution Risk
Delays in new hotel openings can impact revenue forecasts and growth momentum. Successful execution of the development pipeline is crucial for sustained expansion.
↓Regional Economic Weakness
While expanding globally, specific regional economic downturns can test the pace of future gains. Diversification helps, but localized issues can still pose challenges.
Base case
Base case assumptions: 6.3% annual earnings growth, 50x target PE, 10% discount rate, 5 year projection. Data as of 2026-09-11.
This base case uses default assumptions and is not financial advice. The fair value changes significantly when the target PE or earnings growth rate changes. Open the calculator to set your own assumptions and see the full sensitivity range.
Adjust the target PE, earnings growth, and discount rate to see how the fair value and margin of safety for Hyatt Hotels Corporation respond.
Open PE Calculator for HHyatt 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.
PE Ratio (TTM)
189.6x
PEG Ratio
n/m
Earnings Yield
0.51%
ROE (TTM)
2.4%
Revenue/Share (TTM)
$66.36
Dividend Yield
0.37%
Debt/Equity
1.36x
The trailing twelve-month PE ratio of H reflects how much investors pay per dollar of Hyatt Hotels Corporation's earnings. This metric is most useful when compared to Travel Lodging peers and the company's own historical range.
H's PE of 189.6x combined with a PEG ratio of -0.67 provides a growth-adjusted perspective. H has negative earnings, so its PE and PEG ratios are not meaningful here and cannot tell you whether the stock is over or undervalued. Keep in mind that PE-based valuation works best for profitable, mature companies — for high-growth or cyclical Travel Lodging, a DCF analysis may be more appropriate.
To value Hyatt Hotels Corporation using PE: (1) Compare the current PE (189.6x) against the Travel Lodging median to assess relative pricing, (2) check the PEG ratio (-0.67) to adjust for growth expectations, (3) review the 5-year PE range to identify where the stock sits historically, and (4) estimate fair value by multiplying a target PE by forward EPS estimates. This relative approach complements DCF's absolute valuation.
H's PEG ratio is -0.67, calculated by dividing the PE ratio (189.6x) by the expected earnings growth rate. Because H has negative earnings, its PEG ratio is not meaningful and should not be read as a sign of under or overvaluation. Note that PEG accuracy depends on the reliability of growth estimates.
PE ratio gives a quick relative read — how H is priced versus Travel Lodging peers. DCF provides an absolute value based on projected free cash flows. For the most reliable valuation, use PE as a quick comparability screen and DCF for a deeper fundamental analysis. Each method has blind spots: PE ignores capital structure and cash flow quality, while DCF is sensitive to growth and discount rate assumptions.
P/E and DCF value H with different methods and assumptions, so the two conclusions can differ. Compare the DCF intrinsic value.
Price as of 2026-09-11. Financial data from Financial Modeling Prep (trailing twelve months) · Valuation methodology by Charlie Wang.
This is an estimate, not investment advice.