Hilton (HLT): Valuation Check After Canopy Expansion, Global Event Tailwinds, and $1 Billion Debt Refinance
Hilton Worldwide Holdings (HLT) just hit a fresh 52 week high after announcing new Canopy by Hilton openings in Türkiye and issuing $1 billion in senior notes to streamline its balance sheet.
See our latest analysis for Hilton Worldwide Holdings.
That mix of fresh Canopy openings and balance sheet cleanup comes on top of a strong run, with the share price up around the mid-teens over the past year and multi year total shareholder returns firmly signaling building momentum rather than a late cycle fade.
If Hilton’s latest move has you thinking about what else could surprise to the upside, this might be a good moment to explore fast growing stocks with high insider ownership.
With shares now hovering around analyst targets after a powerful multi year run, the key question is whether Hilton’s pipeline, margin expansion, and global events still leave upside, or if markets are already pricing in tomorrow’s growth.
Most Popular Narrative Narrative: 1.4% Overvalued
Hilton’s narrative driven fair value of $283.72 sits just below the last close at $287.67, setting up a tight valuation debate.
The analysts have a consensus price target of $273.5 for Hilton Worldwide Holdings based on their expectations of its future earnings growth, profit margins and other risk factors. However, there is a degree of disagreement amongst analysts, with the most bullish reporting a price target of $311.0, and the most bearish reporting a price target of $229.0.
Want to see how aggressive growth forecasts, shifting margins, and a rich future earnings multiple can still justify today’s lofty price tag? The full narrative reveals the math.
Result: Fair Value of $283.72 (OVERVALUED)
Have a read of the narrative in full and understand what's behind the forecasts.
However, lingering softness in RevPAR and structurally weaker business and group travel could still derail the optimistic earnings and valuation trajectory outlined above.
Find out about the key risks to this Hilton Worldwide Holdings narrative.
Build Your Own Hilton Worldwide Holdings Narrative
If you want to challenge this view or dig into the numbers yourself, you can build a personalized Hilton thesis in minutes: Do it your way.
A great starting point for your Hilton Worldwide Holdings research is our analysis highlighting 2 key rewards and 2 important warning signs that could impact your investment decision.
Looking for more investment ideas?
Before you move on, lock in a few fresh opportunities using our powerful screeners so you are not relying on one story to drive your returns.
- Capture potential bargains by targeting companies trading below their estimated cash flow value with these 917 undervalued stocks based on cash flows.
- Ride the next wave of innovation by focusing on companies at the forefront of machine learning, automation, and intelligent software with these 24 AI penny stocks.
- Secure potentially steadier returns and regular income by filtering for established businesses offering attractive yields using these 13 dividend stocks with yields > 3%.
This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.
Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team@simplywallst.com