Is Hilton Worldwide Holdings Inc. Common Stock (HLT) overvalued?
On Equity Rank's model estimate, HLT trades 112% above its fair value. Hilton Worldwide Holdings Inc. Common Stock (HLT) last closed at $370.45; the multi-method model fair value is $174.60.
| Price | Model fair value | Price vs model |
|---|---|---|
| $370.45 | $174.60 | 112% above |
What the answer rests on
- 0 of 7 valuation methods put HLT's value above its price and 7 put it below, so the methods mostly agree.
- To justify today's price, HLT's free cash flow would need to grow about 17.0% a year for ten years (a reverse discounted cash flow). Over the last three years it actually grew 7.2% a year.
- HLT trades at 50.8 times its last year's earnings, against a median of 37.4 for 7 profitable Hospitality companies.
- Over the past year the price sat below the model fair value on 0% of trading days. The gap ranged from 29% above to 117% above the model fair value.
Read this before relying on it
The model fair value is an estimate from published financial statements. It is not a forecast of where the price goes, and it can be wrong. Within 10% either side we call it close to fair value: valuation models are not precise enough to read more into a smaller gap. Our own lists have no proven edge over the market yet; the live record shows every result, misses included.
Every valuation method behind HLT's fair value · What prices assume · Other companies