Hilton Worldwide Holdings Inc. (HLT) Fair Value & PE Analysis
Travel Lodging · NYSE
Current Price
$306.19
PE Ratio (TTM)
44.5x
Intrinsic Value
$318.17
+3.8% margin of safety
What Is Hilton Worldwide Holdings Inc.'s Fair Value?
As of 2026-09-11, applying a 43.9x earnings multiple to Hilton Worldwide Holdings Inc.'s (HLT) earnings per share of $6.98 yields a fair value estimate of $318.17 per share, versus a market price of $306.19.
Fair value from earnings multiples is sensitive to the multiple you choose. Across the sensitivity grid the estimate spans $273.33 to $368.64. This is a relative estimate anchored to earnings, not a statement of fact. For a cash flow based view, see the intrinsic value estimate on the DCF page.
How the PE model works · Recalculate in PE mode · HLT intrinsic value (DCF view)
Is Hilton Worldwide Holdings Inc. (HLT) Overvalued?
At $306.19, HLT trades about 3.8% below its PE-based fair value estimate, a modest discount to its earnings power, though not enough to call it cheap outright.
COMPETITIVE MOAT
↑Strong Brand Recognition
Hilton's portfolio of well-known brands across various market segments creates significant customer loyalty and recognition. This allows for premium pricing and repeat business.
↑Global Scale and Distribution
An extensive network of hotels worldwide provides a competitive advantage in attracting travelers seeking familiar accommodations. This scale also aids in operational efficiencies.
↑Loyalty Program Lock-in
The Hilton Honors program incentivizes repeat stays and offers exclusive benefits, creating switching costs for frequent guests. This fosters customer retention.
INVESTMENT RISKS
↓Economic Downturn Impact
Recessions or economic slowdowns can significantly reduce travel and leisure spending, directly impacting hotel occupancy rates and revenue for Hilton.
↓Geopolitical and Travel Disruptions
Global events, such as pandemics, political instability, or natural disasters, can severely disrupt international travel, leading to decreased demand for accommodations.
↓Technological Disruption
Emerging travel technologies and alternative lodging platforms could challenge traditional hotel models, requiring continuous adaptation and investment to remain competitive.
Base case
HLT base case PE valuation
Intrinsic Value
$318.17
Margin of safety
+3.8%
Expected annual return
+0.8%
Base case assumptions: 8.4% annual earnings growth, 43.87x 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.
Customize the HLT PE valuation
Adjust the target PE, earnings growth, and discount rate to see how the fair value and margin of safety for Hilton Worldwide Holdings Inc. respond.
Open PE Calculator for HLTCompany Overview
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.
Financial Metrics — HLT PE Stock Valuation Data
PE Ratio (TTM)
44.5x
PEG Ratio
9.76
Earnings Yield
2.28%
ROE (TTM)
-28.1%
Revenue/Share (TTM)
$55.00
Dividend Yield
0.20%
Debt/Equity
n/m
Frequently Asked Questions
What is the PE ratio of HLT?
The trailing twelve-month PE ratio of HLT reflects how much investors pay per dollar of Hilton Worldwide Holdings Inc.'s earnings. This metric is most useful when compared to Travel Lodging peers and the company's own historical range.
Is HLT overvalued based on PE ratio?
HLT's PE of 44.5x combined with a PEG ratio of 9.76 provides a growth-adjusted perspective. A PEG above 2.0 means the P/E is high relative to the earnings growth rate. 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.
How do I value HLT stock using PE ratio?
To value Hilton Worldwide Holdings Inc. using PE: (1) Compare the current PE (44.5x) against the Travel Lodging median to assess relative pricing, (2) check the PEG ratio (9.76) 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.
What is the PEG ratio of HLT?
HLT's PEG ratio is 9.76, calculated by dividing the PE ratio (44.5x) by the expected earnings growth rate. A PEG above 2.0 means the P/E is high relative to the expected earnings growth rate. Note that PEG accuracy depends on the reliability of growth estimates.
Should I use PE ratio or DCF for HLT stock valuation?
PE ratio gives a quick relative read — how HLT 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.
Learn More
- See HLT DCF Valuation → — Intrinsic value via Discounted Cash Flow analysis
- PE Methodology — Step-by-step guide to PE ratio stock valuation
- DCF Methodology — Guide to discounted cash flow analysis
- PE Ratio — Understanding the price-to-earnings ratio
- Intrinsic Value — How to evaluate stock fair value
Related PE Valuations
All Consumer Cyclical valuationsP/E and DCF value HLT 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.