DCF Tool

HLT

Hilton Worldwide Holdings Inc – Hotels (except Casino Hotels) and Motels
Hilton Worldwide Holdings Inc.is a leading global hospitality company with a portfolio of 18 world-class brands comprising more than 6,300 properties and more than one million rooms, in 118 countries and territories. Dedicated to fulfilling its mission to be the world's most hospitable company, Hilton has welcomed more than 3 billion guests in its more than 100-year history, earned a top spot on the 2020 World's Best Workplaces list, and was named the 2020 Global Industry Leader on the Dow Jones Sustainability Indices. In 2020, Hilton CleanStay was introduced, bringing an industry-defining standard of cleanliness and disinfection to hotels worldwide. Through the award-winning guest loyalty program Hilton Honors, the more than 110 million members who book directly with Hilton can earn Points for hotel stays and experiences money can't buy, plus enjoy instant benefits, including contactless check-in with room selection, Digital Key, and Connected Room.
Analysis Results
Intrinsic Value $24.69
Latest Price $118.17
Relative Value 379% overvalued
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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 -7.9%.

Weighted Average Cost of Capital (WACC)

The calculated WACC is 8.7%. This value is used as the default discount rate.

Value of Future Flows

Assuming a growth rate of -7.9%, 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 0.673 0.619
2023 0.62 0.525
2024 0.571 0.445
2025 0.526 0.377
2026 0.485 0.32
Terminal Value

Assuming a growth rate after the projection years of 2.0%, the terminal value of the company would be 7.4 billion. This corresponds to a present value of 4.49 billion.

Intrinsic Value Per Share

The total present value of the projected cash flows is 2.29 billion. Adding in the terminal value gives a total present value of 6.77 billion.

There are presently 274.0 million outstanding shares, so the intrinsic value per share is 24.69.

Financial Statements

The following data was to determine the past cash flows.

Current Assets 2,871,000,000
Current Cash 1,427,000,000
Current Liabilities 3,019,000,000
Current Debt 54,000,000
Non-Cash Working Capital (NCWC) -1,521,000,000
Change in NCWC -130,000,000
EBIT 1,017,000,000
Tax Provision 153,000,000
Depreciation and Amortization 188,000,000
Capital Expenditure -79,000,000
Unlevered Free Cash Flow 718,141,071
Current Assets 4,202,000,000
Current Cash 3,218,000,000
Current Liabilities 2,431,000,000
Current Debt 56,000,000
Non-Cash Working Capital (NCWC) -1,391,000,000
Change in NCWC -112,000,000
EBIT -119,000,000
Tax Provision -204,000,000
Depreciation and Amortization 331,000,000
Capital Expenditure -92,000,000
Unlevered Free Cash Flow 8,000,000
Current Assets 2,093,000,000
Current Cash 538,000,000
Current Liabilities 2,871,000,000
Current Debt 37,000,000
Non-Cash Working Capital (NCWC) -1,279,000,000
Change in NCWC -260,000,000
EBIT 1,576,000,000
Tax Provision 358,000,000
Depreciation and Amortization 346,000,000
Capital Expenditure -205,000,000
Unlevered Free Cash Flow 1,003,456,591
Current Assets 1,983,000,000
Current Cash 403,000,000
Current Liabilities 2,615,000,000
Current Debt 16,000,000
Non-Cash Working Capital (NCWC) -1,019,000,000
Change in NCWC -273,000,000
EBIT 1,432,000,000
Tax Provision 309,000,000
Depreciation and Amortization 325,000,000
Capital Expenditure -159,000,000
Unlevered Free Cash Flow 914,528,756
Current Assets 1,986,000,000
Current Cash 570,000,000
Current Liabilities 2,208,000,000
Current Debt 46,000,000
Non-Cash Working Capital (NCWC) -746,000,000
Change in NCWC -372,000,000
EBIT 1,372,000,000
Tax Provision -334,000,000
Depreciation and Amortization 347,000,000
Capital Expenditure -133,000,000
Unlevered Free Cash Flow 1,214,000,000
Current Assets 3,557,000,000
Current Cash 1,418,000,000
Current Liabilities 2,684,000,000
Current Debt 171,000,000
Non-Cash Working Capital (NCWC) -374,000,000
Change in NCWC -111,000,000
EBIT 1,875,000,000
Tax Provision 891,000,000
Depreciation and Amortization 686,000,000
Capital Expenditure -398,000,000
Unlevered Free Cash Flow 720,824,701
Current Assets 2,585,000,000
Current Cash 609,000,000
Current Liabilities 2,467,000,000
Current Debt 228,000,000
Non-Cash Working Capital (NCWC) -263,000,000
Change in NCWC -76,000,000
EBIT 1,797,000,000
Tax Provision 80,000,000
Depreciation and Amortization 692,000,000
Capital Expenditure -372,000,000
Unlevered Free Cash Flow 1,944,903,743
Current Assets 2,499,000,000
Current Cash 566,000,000
Current Liabilities 2,257,000,000
Current Debt 137,000,000
Non-Cash Working Capital (NCWC) -187,000,000
Change in NCWC 114,000,000
EBIT 1,692,000,000
Tax Provision 465,000,000
Depreciation and Amortization 628,000,000
Capital Expenditure -268,000,000
Unlevered Free Cash Flow 1,480,054,054
Current Assets 2,383,000,000
Current Cash 594,000,000
Current Liabilities 2,142,000,000
Current Debt 52,000,000
Non-Cash Working Capital (NCWC) -301,000,000
Change in NCWC -431,000,000
EBIT 1,118,000,000
Tax Provision 238,000,000
Depreciation and Amortization 603,000,000
Capital Expenditure -254,000,000
Unlevered Free Cash Flow 654,790,830

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