Using the industry peer median P/E multiple (trailing + forward), Hilton Worldwide Holdings Inc. (HLT) has a fair value of $187.75 based on 6 comparable companies in the Travel Lodging industry.
USD in millions except Fair Price. Subject company highlighted.
| Mkt Cap ($M) | Trailing P/E | Forward P/E | |
|---|---|---|---|
| Hilton Worldwide Holdings Inc.HLT | 72,165 | 49.5x | 33.5x |
| Marriott International, Inc.MAR | 86,418 | 34.4x | 28.2x |
| Airbnb, Inc.ABNB | 78,321 | 32.4x | 26.3x |
| Royal Caribbean Cruises Ltd.RCL | 74,789 | 17.6x | 15.2x |
| Ross Stores, Inc.ROST | 70,190 | 32.7x | 33.1x |
| General Motors CompanyGM | 70,067 | 23.0x | 6.1x |
| AutoZone, Inc.AZO | 55,766 | 23.4x | 22.6x |
| Industry Median | 27.9x | 24.5x | |
| (*) Profit after tax | 1,457 | 2,152 | |
| Equity Value | 40,635 | 48,733 | |
| (/) Outstanding shares | 238 | 238 | |
| Fair Price | $171 | $205 | |
This P/E relative valuation uses the industry peer median Price-to-Earnings ratio to estimate fair value. Both trailing (last 12 months) and forward (next fiscal year analyst estimates) P/E multiples are computed independently.
The industry median trailing P/E is applied to the company's TTM net income, and the forward P/E to analyst-estimated net income. Each produces an equity value divided by shares outstanding to yield a fair price per share. The selected fair value is the average of the trailing and forward legs.