Using the PEG framework with analyst consensus forward EPS growth of 22.0% plus 0.2% dividend yield, Hilton Worldwide Holdings Inc. has a fair value of $198.88 based on NTM EPS (FY2026) of $9.04. The current PEG ratio is 1.52.
PEG < 1 = bargain, 1–1.5 = fair, > 2 = expensive.
PEG is most informative for high-growth companies — the PEG sweet spot.
| EPS Growth RateForward | 21.8% |
| Dividend Yield | +0.2% |
| Adjusted Growth (clamped 8–25%) | 22.0% |
| Fair P/E | 22.0x |
| NTM EPS (FY2026) | $9.04 |
| Fair Value | $198.88 |
| Period | EPS Est. | Growth | Analysts |
|---|---|---|---|
| FY2025 (actual) | $6.12 | — | — |
| FY2026E | $9.04 | +47.7% | 12 |
| FY2027E | $10.36 | +14.6% | 11 |
| FY2028E | $11.94 | +15.2% | 9 |
| FY2029E | $14.02 | +17.5% | 4 |
| FY2030E | $16.40 | +17.0% | 4 |
5Y Forward EPS CAGR: 21.8%
| Year | Net Income | EPS | YoY |
|---|---|---|---|
| FY2021 | $410.0M | $1.46 | — |
| FY2022 | $1.3B | $4.53 | +210.3% |
| FY2023 | $1.1B | $4.32 | -4.6% |
| FY2024 | $1.5B | $6.14 | +42.1% |
| FY2025 | $1.5B | $6.12 | -0.3% |
4Y Historical EPS CAGR: 43.1%
The PEG Fair Value uses the Price/Earnings-to-Growth framework. A stock is fairly valued when its P/E ratio equals its earnings growth rate (PEG = 1.0). This model adds dividend yield to the growth rate per the original PEGY formula.
Growth rate priority: analyst consensus forward EPS CAGR (when ≥ 3 analysts cover the stock), falling back to historical EPS CAGR. Using EPS rather than net income avoids distortion from share buybacks. The growth rate is clamped between 8% and 25% — below 8% would undervalue stable earners, while above 25% would overvalue unsustainable spikes.