Hilton Worldwide Holdings Inc. (HLT) Fair Value & PE Analysis
Travel Lodging · NYSE
Current Price
$345.95
PE Ratio (TTM)
51.4x
Intrinsic Value
$462.42
+25.2% margin of safety
What Is Hilton Worldwide Holdings Inc.'s Fair Value?
As of 2026-06-12, applying a 50.0x earnings multiple to Hilton Worldwide Holdings Inc.'s (HLT) earnings per share of $6.73 yields a fair value estimate of $462.42 per share, versus a market price of $345.95.
Fair value from earnings multiples is sensitive to the multiple you choose. Across the sensitivity grid the estimate spans $401.57 to $530.34. 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 our PE model works · Recalculate in PE mode · HLT intrinsic value (DCF view)
Is Hilton Worldwide Holdings Inc. (HLT) Overvalued?
At $345.95, HLT trades about 25.2% below its PE-based fair value estimate, a modest discount to its earnings power, though not enough for us to call it cheap outright.
COMPETITIVE MOAT
↑Strong Brand Recognition
Hilton's globally recognized brands foster customer loyalty and command premium pricing. This established reputation attracts both travelers and hotel owners, creating a virtuous cycle.
↑Extensive Global Footprint
A vast network of hotels across diverse markets provides significant operational scale and diversification. This broad presence allows Hilton to capture demand in various economic conditions and geographies.
↑Loyalty Program Power
Hilton Honors is a powerful engine for customer retention and repeat business. The program's benefits incentivize guests to choose Hilton properties, driving consistent occupancy.
INVESTMENT RISKS
↓Intense Industry Competition
The travel lodging sector is highly competitive, with numerous established players and emerging disruptors. This can pressure pricing and market share.
↓Economic Sensitivity
Hilton's performance is closely tied to global economic conditions and discretionary consumer spending. Downturns can significantly impact travel demand and revenue.
↓Labor Market Volatility
Attracting and retaining qualified staff is crucial for service quality. Labor shortages or rising wage costs can impact operational efficiency and profitability.
Base case
HLT base case PE valuation
Intrinsic Value
$462.42
Margin of safety
+25.2%
Expected annual return
+6.0%
Base case assumptions: 15.2% annual earnings growth, 50x target PE, 10% discount rate, 5 year projection. Data as of 2026-06-12.
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. operates as a prominent global hospitality enterprise, focusing on the management, franchising, and leasing of hotel and resort properties. Its business model is primarily structured around two main divisions: the Management and Franchise segment, and the Ownership segment. A significant part of its activities includes directly overseeing hotel operations and permitting the use of its distinctive brand names, trademarks, and service marks through licensing agreements. Hilton boasts an extensive and varied portfolio of hotel brands, encompassing categories such as luxury, lifestyle, full-service, focused-service, all-suites, and timeshare properties. This comprehensive collection features renowned names like 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. Globally, the company's operational footprint covers vast regions including North, South, and Central America (with a strong presence in numerous Caribbean nations), alongside Europe, the Middle East, Africa, and the entire Asia Pacific area. Established in 1919, Hilton Worldwide Holdings Inc. maintains its corporate headquarters in McLean, Virginia.
Financial Metrics — HLT PE Stock Valuation Data
PE Ratio (TTM)
51.4x
PEG Ratio
17.36
Earnings Yield
1.95%
ROE (TTM)
-29.6%
Revenue/Share (TTM)
$53.63
Dividend Yield
0.17%
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 51.4x combined with a PEG ratio of 17.36 provides a growth-adjusted perspective. A PEG above 2.0 suggests HLT may be richly valued even accounting for growth. 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 (51.4x) against the Travel Lodging median to assess relative pricing, (2) check the PEG ratio (17.36) 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 17.36, calculated by dividing the PE ratio (51.4x) by the expected earnings growth rate. A PEG above 2.0 often signals the stock is priced aggressively relative to its growth trajectory. 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 2026-06-12. Financial data from Financial Modeling Prep (trailing twelve months) · Valuation methodology by Charlie Wang.
This is an estimate, not investment advice.