DCF Tool

HGV

Hilton Grand Vacations Inc – Hotels (except Casino Hotels) and Motels
Hilton Grand Vacations Inc. is recognized as a leading global timeshare company. With headquarters in Orlando, Florida, Hilton Grand Vacations develops, markets and operates a system of brand-name, high-quality vacation ownership resorts in select vacation destinations. The Company also manages and operates two innovative club membership programs: Hilton Grand Vacations Club® and The Hilton Club®, providing exclusive exchange, leisure travel and reservation services for more than 325,000 club members.
Analysis Results
Intrinsic Value $2,966.65
Latest Price $43.64
Relative Value 99% undervalued
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Cash Flow (Billions)
Analysis Parameters
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Analysis Details
Growth Rate Projection

An exponential growth model was fit to the past cash flow data, giving more weight to more recent years. This model determined a growth rate estimate of 69.2%.

Weighted Average Cost of Capital (WACC)

The calculated WACC is 6.9%. This value is used as the default discount rate.

Value of Future Flows

Assuming a growth rate of 69.2%, the cash flows for the next 5 years are projected.

The present value of each year's flow is adjusted to present value using the discount rate.

Year Future flow (billion) Present value (billion)
2022 2.8 2.62
2023 4.73 4.14
2024 8.01 6.55
2025 13.5 10.4
2026 22.9 16.4
Terminal Value

Assuming a growth rate after the projection years of 2.0%, the terminal value of the company would be 474 billion. This corresponds to a present value of 317 billion.

Intrinsic Value Per Share

The total present value of the projected cash flows is 40.1 billion. Adding in the terminal value gives a total present value of 357 billion.

There are presently 120.0 million outstanding shares, so the intrinsic value per share is 2966.65.

Financial Statements

The following data was to determine the past cash flows.

Current Assets 4,044,000,000
Current Cash 432,000,000
Current Liabilities 785,000,000
Current Debt 0
Non-Cash Working Capital (NCWC) 2,827,000,000
Change in NCWC 1,255,000,000
EBIT 508,000,000
Tax Provision 93,000,000
Depreciation and Amortization 126,000,000
Capital Expenditure -39,000,000
Unlevered Free Cash Flow 1,674,371,747
Current Assets 2,369,000,000
Current Cash 428,000,000
Current Liabilities 369,000,000
Current Debt 0
Non-Cash Working Capital (NCWC) 1,572,000,000
Change in NCWC 5,000,000
EBIT -31,000,000
Tax Provision -79,000,000
Depreciation and Amortization 45,000,000
Capital Expenditure -31,000,000
Unlevered Free Cash Flow -12,000,000
Current Assets 2,047,000,000
Current Cash 67,000,000
Current Liabilities 413,000,000
Current Debt 0
Non-Cash Working Capital (NCWC) 1,567,000,000
Change in NCWC 120,000,000
EBIT 319,000,000
Tax Provision 57,000,000
Depreciation and Amortization 51,000,000
Capital Expenditure -63,000,000
Unlevered Free Cash Flow 360,395,604
Current Assets 1,980,000,000
Current Cash 108,000,000
Current Liabilities 425,000,000
Current Debt 0
Non-Cash Working Capital (NCWC) 1,447,000,000
Change in NCWC 147,000,000
EBIT 434,000,000
Tax Provision 105,000,000
Depreciation and Amortization 36,000,000
Capital Expenditure -44,000,000
Unlevered Free Cash Flow 459,923,076
Current Assets 1,989,000,000
Current Cash 246,000,000
Current Liabilities 443,000,000
Current Debt 0
Non-Cash Working Capital (NCWC) 1,300,000,000
Change in NCWC -130,000,000
EBIT 338,000,000
Tax Provision -16,000,000
Depreciation and Amortization 29,000,000
Capital Expenditure -35,000,000
Unlevered Free Cash Flow 202,000,000
Current Assets 1,812,000,000
Current Cash 48,000,000
Current Liabilities 334,000,000
Current Debt 0
Non-Cash Working Capital (NCWC) 1,430,000,000
Change in NCWC 182,000,000
EBIT 323,000,000
Tax Provision 125,000,000
Depreciation and Amortization 24,000,000
Capital Expenditure -26,000,000
Unlevered Free Cash Flow 365,201,365

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