DCF Tool


Hilton Grand Vacations Inc – Hotels (except Casino Hotels) and Motels
hilton grand vacations company, llc, is a division of hilton hotels corporation, recognized as the leading global hospitality company. headquartered 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 127,000 club members. hilton grand vacations provides comprehensive on-site management services to all club resorts, including the operation of owner rental programs, resort recreational programs and retail outlets. additionally the company operates one of the industry’s most successful resale programs for its managed resort properties.
Analysis Results
Intrinsic Value $144.39
Latest Price $39.20
Relative Value 73% undervalued
Thoughts on this result? Let us know.
Cash Flow (Billions)
Analysis Parameters
New Ticker
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 9.3%.

Weighted Average Cost of Capital (WACC)

The calculated WACC is 6.5%. This value is used as the default discount rate.

Value of Future Flows

Assuming a growth rate of 9.3%, 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)
2023 0.584 0.549
2024 0.639 0.563
2025 0.698 0.578
2026 0.763 0.593
2027 0.834 0.609
Terminal Value

Assuming a growth rate after the projection years of 2.0%, the terminal value of the company would be 19.0 billion. This corresponds to a present value of 13.0 billion.

Intrinsic Value Per Share

The total present value of the projected cash flows is 2.89 billion. Adding in the terminal value gives a total present value of 15.9 billion.

There are presently 110.0 million outstanding shares, so the intrinsic value per share is 144.39.

Financial Statements

The following data was to determine the past cash flows.

Current Assets 4,018,000,000
Current Cash 223,000,000
Current Liabilities 1,157,000,000
Current Debt 0
Non-Cash Working Capital (NCWC) 2,638,000,000
Change in NCWC -189,000,000
EBIT 708,000,000
Tax Provision 129,000,000
Depreciation and Amortization 244,000,000
Capital Expenditure -97,000,000
Unlevered Free Cash Flow 476,120,582
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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