Hilton Worldwide Holdings Inc. (HLT) Fundamental Analysis: Bull vs. Bear Case

HLT

Hilton Worldwide Holdings Inc.

Fundamental data last updated:July 17, 2026

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company profile

SECTOR

Consumer Cyclical

industry

Travel Lodging

Exchange

NYSE

County of HQ

US

Next Earnings Date

07/28/2026

Business Summary

Hilton Worldwide Holdings Inc., a hospitality company, engages in managing, franchising, and leasing hotels and resorts. It operates in two segments, Management and Franchise, and Ownership. The company engages in the hotel management and licensing of its brand names, trademarks, and service marks. It operates a brand portfolio of luxury, lifestyle, full service, focused service, all-suites hotel, and timeshare under the Waldorf Astoria Hotels & Resorts, LXR Hotels & Resorts, Conrad Hotels & Resorts, Signia by Hilton, NoMad, Canopy by Hilton, Graduate by Hilton, Tempo by Hilton, Motto by Hilton, Hilton Hotels & Resorts, DoubleTree by Hilton, Curio Collection by Hilton, Tapestry Collection by Hilton, Outset Collection by Hilton, Embassy Suites by Hilton, Homewood Suites by Hilton, Home2 Suites by Hilton, LivSmart Studios by Hilton, Hilton Garden Inn, Hampton by Hilton, Tru by Hilton, Spark by Hilton, Hilton Grand Vacations, Small Luxury Hotels of the World, AutoCamp, and Hilton Honors brand names. The company has operations in North America, South America, and Central America, including various Caribbean nations; Europe, the Middle East, and Africa; and the Asia Pacific. Hilton Worldwide Holdings Inc. was founded in 1919 and is headquartered in McLean, Virginia.

VALUATION

P/E

50.41 Market Cap ($M USD)

$77.27B

Forward P/E

20.75 PEG

0.15 PRICE TO SALES

6.29 PRICE TO BOOK

-13.16

EV / EBITDA

29.86 5-Year Average P/E

Free Cash Flow Yield

2.80%

DCF Value

$137.80

Graham Number

N/A

Price to FCF

35.75 EV to FCF

41.51 Earnings Yield

1.98%

FCF Yield

2.80%

DIVIDEND

Yield

0.18%

Annual Payout

$0.60

Payout Ratio

9.14%

Consecutive Years of Dividend Growth

5-Year Dividend Growth Rate

Financial Health & Profitability

Earnings Per Share

$6.73

Next Year EPS Growth Estimate

$16.36

Next Year Revenue Growth Estimate

$1.77T

Return on Equity (ROE)

-29.63%

FREE CASH FLOW

Operating Margin

23.08%

Debt-to-Equity

-2.91

Piotroski F-Score

8 Altman Z-Score

3.15 Return on Invested Capital (ROIC)

23.97%

Current Ratio

0.61 Quick Ratio

0.61 Net Debt to EBITDA

4.14 Interest Coverage

4.45 Gross Profit margin

44.29%

FCF PER SHARE

$9.44

REVENUE PER SHARE

$53.63

Gainseekers Quantitative Analysis

Summary

Hilton Worldwide Holdings Inc. appears to be trading at a premium, with its snapshot price significantly above the DCF value. The Price/Earnings ratio is lofty, suggesting the market expects substantial growth, yet the Earnings Yield is a modest 2.15%, indicating limited immediate returns. However, the Forward P/E of 19.12 and a robust Altman Z-score of 3.03 suggest financial stability and potential for future growth. Despite these positives, the negative Return on Equity raises questions about management efficiency and capital allocation.

AI Exposure / Tech Reliance

In the travel lodging industry, Hilton is well-positioned to leverage AI and tech advancements to enhance customer experiences and operational efficiency. The integration of AI-driven booking systems and personalized guest services can streamline operations and boost customer satisfaction. As the industry evolves, Hilton's adaptability to tech shifts will be crucial for maintaining its competitive edge.

The Bull Case

For the value-driven investor, Hilton's strong ROIC of 23.97% and a Piotroski F-Score of 8 highlight its operational efficiency and financial health. The company's Free Cash Flow Yield, although modest, indicates a capacity to generate cash, bolstered by a solid operating margin of 23.08%. These metrics suggest Hilton has the pricing power and capital efficiency to deliver long-term value, making it an attractive option for those seeking growth at a reasonable price.

The Bear Case

Despite its strengths, Hilton faces significant structural risks. The Price/Book ratio is alarmingly negative, and the Price/Sales ratio of 5.80 suggests the stock is overvalued relative to its revenue. Additionally, the stock's proximity to its 52-week high indicates potential overextension, posing a risk of correction. The negative Debt/Equity ratio further complicates its financial structure, raising concerns about leverage and financial flexibility.

Market Sentiment & Smart Money

Short Interest %

Analyst Consensus

Buy

Average Analyst Price Target

$342.30

Institutional Ownership %

1-Year Beta

1.05 Insider Buying % (6 Mo)

Distance to 52-Week High

5.48%

Distance to 52-Week Low

25.30%

EARNINGS SURPRISE %

1.52%

50-DAY SMA

$330.50

200-DAY SMA

$299.72

⚠️ Financial Disclaimer:
This content is for informational purposes only and is not financial advice. Information may be delayed or inaccurate. We may earn a commission from partner links.