Hilton Worldwide Holdings Inc., FCFF calculation

US$ in millions

12 months ended:	Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
Net income (loss) attributable to Hilton stockholders	1,141)	1,255)	410)	(715)	881)
Net (income) loss attributable to noncontrolling interests	10)	2)	(3)	(5)	5)
Net noncash charges	751)	439)	(141)	1,320)	483)
Changes in operating assets and liabilities	44)	(15)	(157)	108)	15)
Net cash provided by operating activities	1,946)	1,681)	109)	708)	1,384)
Cash interest paid, net of tax¹	335)	278)	261)	337)	256)
Capital expenditures for property and equipment	(151)	(39)	(35)	(46)	(81)
Capitalized software costs	(96)	(63)	(44)	(46)	(124)
ROU assets obtained in exchange for lease liabilities in non-cash transactions, finance leases	(24)	(21)	(17)	(20)	(61)
Free cash flow to the firm (FCFF)	2,010)	1,836)	274)	933)	1,374)

Based on: 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31).

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Item	Description	The company
FCFF	Free cash flow to the firm is the cash flow available to the Hilton Worldwide Holdings Inc. suppliers of capital after all operating expenses have been paid and necessary investments in working and fixed capital have been made.	Hilton Worldwide Holdings Inc. FCFF increased from 2021 to 2022 and from 2022 to 2023.

Hilton Worldwide Holdings Inc., interest paid, net of tax calculation

US$ in millions

12 months ended:	Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
Effective Income Tax Rate (EITR)
EITR¹	31.97%	27.51%	27.32%	22.08%	28.78%
Interest Paid, Net of Tax
Cash interest paid, before tax	492)	383)	359)	433)	360)
Less: Cash interest paid, tax²	157)	105)	98)	96)	104)
Cash interest paid, net of tax	335)	278)	261)	337)	256)

Based on: 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31).

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² 2023 Calculation
Cash interest paid, tax = Cash interest paid × EITR
= 492 × 31.97% = 157

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Hilton Worldwide Holdings Inc., current EV/FCFF calculation, comparison to benchmarks

Selected Financial Data (US$ in millions)
Enterprise value (EV)	58,487)
Free cash flow to the firm (FCFF)	2,010)
Valuation Ratio
EV/FCFF	29.10
Benchmarks
EV/FCFF, Competitors¹
Airbnb Inc.	19.39
Booking Holdings Inc.	18.54
Chipotle Mexican Grill Inc.	62.90
McDonald’s Corp.	30.62
Starbucks Corp.	29.66
EV/FCFF, Sector
Consumer Services	26.27
EV/FCFF, Industry
Consumer Discretionary	36.72

Based on: 10-K (reporting date: 2023-12-31).

¹ Click competitor name to see calculations.

If the company EV/FCFF is lower then the EV/FCFF of benchmark then company is relatively undervalued.
Otherwise, if the company EV/FCFF is higher then the EV/FCFF of benchmark then company is relatively overvalued.

Hilton Worldwide Holdings Inc., historical EV/FCFF calculation, comparison to benchmarks

	Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
Selected Financial Data (US$ in millions)
Enterprise value (EV)¹	57,765)	47,646)	50,897)	38,162)	38,708)
Free cash flow to the firm (FCFF)²	2,010)	1,836)	274)	933)	1,374)
Valuation Ratio
EV/FCFF³	28.74	25.96	185.81	40.89	28.16
Benchmarks
EV/FCFF, Competitors⁴
Airbnb Inc.	23.35	22.46	42.36	—	—
Booking Holdings Inc.	17.62	14.11	36.39	—	15.01
Chipotle Mexican Grill Inc.	57.71	51.53	50.61	146.36	56.84
McDonald’s Corp.	30.11	35.39	26.32	34.80	29.06
Starbucks Corp.	32.25	42.44	28.09	281.97	30.98
EV/FCFF, Sector
Consumer Services	26.60	27.99	31.26	115.64	25.85
EV/FCFF, Industry
Consumer Discretionary	32.71	50.20	59.78	45.72	30.57

Based on: 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31).

¹ See details »

² See details »

³ 2023 Calculation
EV/FCFF = EV ÷ FCFF
= 57,765 ÷ 2,010 = 28.74

⁴ Click competitor name to see calculations.

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Valuation ratio	Description	The company
EV/FCFF	Enterprise value to free cash flow to the firm is whole company valuation indicator.	Hilton Worldwide Holdings Inc. EV/FCFF ratio decreased from 2021 to 2022 but then slightly increased from 2022 to 2023.

Hilton Worldwide Holdings Inc. (NYSE:HLT)

Enterprise Value to FCFF (EV/FCFF)

Free Cash Flow to The Firm (FCFF)

Interest Paid, Net of Tax

Enterprise Value to FCFF Ratio, Current

Enterprise Value to FCFF Ratio, Historical