Hyatt Hotels Corporation (H) Intrinsic Value & DCF Valuation
Travel Lodging · NYSE
Current Price
$177.69
Intrinsic Value
Outside reliable range
What Is Hyatt Hotels Corporation's Intrinsic Value?
The base-case DCF model produces an intrinsic value estimate for Hyatt Hotels Corporation (H) that falls outside its reliable range, so treat any single number with extra caution. This usually happens with unusual cash flow patterns or rapid recent changes in the business.
How the DCF works · Recalculate with your own assumptions · What is intrinsic value?
Is Hyatt Hotels Corporation (H) Undervalued?
Because the model output for H is outside the reliable range, no undervalued or overvalued read is given here. Use the calculator below to test your own assumptions instead.
COMPETITIVE MOAT
↑Strong Brand Recognition
Hyatt's established brands like Park Hyatt and Grand Hyatt command premium pricing and customer loyalty. This recognition fosters repeat business and attracts new guests seeking quality experiences.
↑Loyalty Program Engagement
World of Hyatt offers valuable rewards and benefits, encouraging guests to consolidate their stays. This creates switching costs and a predictable revenue stream from engaged members.
↑Global Development Pipeline
Hyatt's strategic expansion into new markets, like the recent Tucson announcement, diversifies its portfolio. This growth solidifies its presence and captures emerging demand.
INVESTMENT RISKS
↓Economic Sensitivity
Travel and lodging are discretionary spending. Economic downturns or recessions can significantly reduce demand, impacting occupancy rates and revenue.
↓Geopolitical and Health Shocks
Global events such as pandemics, political instability, or natural disasters can severely disrupt travel patterns. This leads to unpredictable demand fluctuations and operational challenges.
↓Labor Market Volatility
Attracting and retaining qualified staff is crucial for service quality. Labor shortages or rising wage pressures can impact operational efficiency and profitability.
Base case
H base case valuation
Base case assumptions: 7.6% annual growth, 10.0% discount rate, 30x exit multiple, 5 year projection. Data as of 2026-07-30.
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)
$66.29
FCF/Share (TTM)
$0.67
ROIC (TTM)
n/m
ROE (TTM)
10.3%
P/FCF
268.3x
EV/EBITDA
28.5x
FCF Yield
0.37%
Debt/Equity
0.00x
Based on trailing twelve-month data, H shows a free cash flow per share of $0.67 and a ROIC of n/m, key inputs for stock valuation using the DCF method. The P/FCF ratio of 268.3x and FCF yield of 0.37% 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 $177.69, 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 268.3x with a free cash flow yield of 0.37%. A high P/FCF means investors are paying more per dollar of free cash flow, which usually reflects expectations of 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 0.00x, 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.
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 0.00x, the capital structure directly influences WACC. A 1% increase in WACC typically reduces the intrinsic value by 10-15%. At an EV/EBITDA of 28.5x, 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
Related Valuations
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 2026-07-30. Financial data from Financial Modeling Prep (trailing twelve months) · Valuation methodology by Charlie Wang.
This is an estimate, not investment advice.