Using the industry peer median P/E multiple (trailing + forward), Marriott International, Inc. (MAR) has a fair value of $312.55 based on 8 comparable companies in the Travel Lodging industry.
USD in millions except Fair Price. Subject company highlighted.
| Mkt Cap ($M) | Trailing P/E | Forward P/E | |
|---|---|---|---|
| Marriott International, Inc.MAR | 87,964 | 34.4x | 28.3x |
| Airbnb, Inc.ABNB | 78,321 | 32.4x | 26.3x |
| O'Reilly Automotive, Inc.ORLY | 78,257 | 31.2x | 28.7x |
| Royal Caribbean Cruises Ltd.RCL | 74,789 | 17.6x | 15.2x |
| Hilton Worldwide Holdings Inc.HLT | 70,481 | 49.5x | 33.5x |
| Ross Stores, Inc.ROST | 70,190 | 32.7x | 33.1x |
| General Motors CompanyGM | 70,067 | 23.0x | 6.1x |
| Carvana Co.CVNA | 65,160 | 35.6x | 40.7x |
| AutoZone, Inc.AZO | 55,766 | 23.4x | 22.6x |
| Industry Median | 31.8x | 27.5x | |
| (*) Profit after tax | 2,601 | 3,111 | |
| Equity Value | 82,754 | 85,646 | |
| (/) Outstanding shares | 269 | 269 | |
| Fair Price | $307 | $318 | |
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.