Price to FCFE (P/FCFE)
Free Cash Flow to Equity (FCFE)
Hilton Worldwide Holdings Inc., FCFE calculation
US$ in millions
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).
The financial data reveals considerable fluctuations in key cash flow metrics over the five-year period ending December 31, 2023. Two primary items are reported: net cash provided by operating activities and free cash flow to equity (FCFE), both measured in millions of US dollars.
- Net Cash Provided by Operating Activities
-
This metric experienced a notable decline from 2019 (US$1,384 million) to 2021 (US$109 million), indicating a significant contraction in operating cash inflows during this period. The sharp decrease in 2020 to US$708 million and the subsequent plunge to a low in 2021 suggest operational challenges or reduced cash generation capacity amid these years.
However, a pronounced recovery is apparent starting in 2022, with net cash provided increasing substantially to US$1,681 million and further growing to US$1,946 million in 2023. This resurgence indicates an improvement in operational efficiency or increased revenue generation capability, restoring cash inflows to levels exceeding those observed in 2019.
- Free Cash Flow to Equity (FCFE)
-
FCFE shows a markedly different and more volatile pattern. Beginning at US$1,803 million in 2019, this metric increased significantly to a peak of US$3,014 million in 2020. The surge in FCFE in 2020 contrasts with the decline in net operating cash flow, suggesting that financing activities or changes in capital expenditures may have influenced cash availability to equity holders during this year.
In 2021, FCFE sharply reversed course to a negative value of US$-1,766 million. This dramatic swing to negative free cash flow highlights a period of substantial cash outflows relative to cash inflows available to equity investors, potentially driven by increased investment expenditures, debt repayments, or other financing activities.
Subsequently, FCFE rebounded to US$1,554 million in 2022 and further ascended to US$2,105 million in 2023. The recovery pattern aligns with the improvement seen in operating cash, reflecting restoration of positive cash flow availability to shareholders in the latter years.
Overall, the data presents a cycle of stress followed by recovery. The near-collapse of operating cash flow in 2021 and the negative FCFE highlight a period of financial strain or strategic investment, which was followed by two consecutive years of strong financial performance and cash flow restoration by 2023. The recovery phase suggests effective management responses and favorable operational conditions leading to strengthening liquidity and cash flow from operations as well as to equity holders.
Price to FCFE Ratio, Current
Hilton Worldwide Holdings Inc., current P/FCFE calculation, comparison to benchmarks
| No. shares of common stock outstanding | 246,427,097 |
| Selected Financial Data (US$) | |
| Free cash flow to equity (FCFE) (in millions) | 2,105) |
| FCFE per share | 8.54 |
| Current share price (P) | 203.52 |
| Valuation Ratio | |
| P/FCFE | 23.83 |
| Benchmarks | |
| P/FCFE, Competitors1 | |
| Airbnb Inc. | 19.14 |
| Booking Holdings Inc. | 16.30 |
| Chipotle Mexican Grill Inc. | 49.62 |
| McDonald’s Corp. | 32.32 |
| Starbucks Corp. | 31.30 |
| P/FCFE, Sector | |
| Consumer Services | 24.14 |
| P/FCFE, Industry | |
| Consumer Discretionary | 39.53 |
Based on: 10-K (reporting date: 2023-12-31).
1 Click competitor name to see calculations.
If the company P/FCFE is lower then the P/FCFE of benchmark then company is relatively undervalued.
Otherwise, if the company P/FCFE is higher then the P/FCFE of benchmark then company is relatively overvalued.
Price to FCFE Ratio, Historical
Hilton Worldwide Holdings Inc., historical P/FCFE calculation, comparison to benchmarks
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| No. shares of common stock outstanding1 | 252,160,518 | 266,450,664 | 279,139,082 | 277,607,799 | 277,447,716 | |
| Selected Financial Data (US$) | ||||||
| Free cash flow to equity (FCFE) (in millions)2 | 2,105) | 1,554) | (1,766) | 3,014) | 1,803) | |
| FCFE per share3 | 8.35 | 5.83 | -6.33 | 10.86 | 6.50 | |
| Share price1, 4 | 196.03 | 150.80 | 156.34 | 111.43 | 112.94 | |
| Valuation Ratio | ||||||
| P/FCFE5 | 23.48 | 25.86 | — | 10.26 | 17.38 | |
| Benchmarks | ||||||
| P/FCFE, Competitors6 | ||||||
| Airbnb Inc. | 25.72 | 24.76 | 54.32 | 99.90 | — | |
| Booking Holdings Inc. | 15.89 | 11.52 | 69.03 | 37.59 | — | |
| Chipotle Mexican Grill Inc. | 58.77 | 52.59 | 51.88 | 149.64 | — | |
| McDonald’s Corp. | 20.85 | 28.85 | 30.21 | 22.96 | — | |
| Starbucks Corp. | 29.75 | 34.82 | 45.80 | 20.79 | 20.35 | |
| P/FCFE, Sector | ||||||
| Consumer Services | 22.99 | 23.78 | 42.78 | 32.80 | — | |
| P/FCFE, Industry | ||||||
| Consumer Discretionary | 30.84 | 36.19 | 82.92 | 32.04 | — | |
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 Data adjusted for splits and stock dividends.
3 2023 Calculation
FCFE per share = FCFE ÷ No. shares of common stock outstanding
= 2,105,000,000 ÷ 252,160,518 = 8.35
4 Closing price as at the filing date of Hilton Worldwide Holdings Inc. Annual Report.
5 2023 Calculation
P/FCFE = Share price ÷ FCFE per share
= 196.03 ÷ 8.35 = 23.48
6 Click competitor name to see calculations.
- Share Price
- The share price experienced a slight decline from $112.94 at the end of 2019 to $111.43 in 2020. Subsequently, the price rose significantly to $156.34 in 2021, followed by a minor decrease to $150.80 in 2022. In 2023, the share price demonstrated a notable increase, reaching $196.03. Overall, the trend indicates a recovery and growth pattern after an initial dip in 2020.
- Free Cash Flow to Equity (FCFE) per Share
- The FCFE per share showed considerable volatility throughout the period. It increased from $6.50 in 2019 to a peak of $10.86 in 2020, suggesting improved cash flows during this year. However, there was a significant decline in 2021, where FCFE per share turned negative at -$6.33, which may indicate cash flow challenges or increased capital expenditures. Recovery was seen in 2022 with FCFE per share rising back to $5.83 and further increasing to $8.35 in 2023, reflecting a return to positive and improving cash flow generation for shareholders.
- Price to FCFE Ratio (P/FCFE)
- The P/FCFE ratio started at 17.38 in 2019 and dropped markedly to 10.26 in 2020, potentially reflecting a lower market valuation relative to cash flows or increased FCFE per share in that year. The ratio is missing for 2021, likely due to the negative FCFE per share, which makes the ratio undefined or not meaningful. In 2022, the ratio climbed sharply to 25.86, suggesting that the market price was relatively high compared to FCFE per share, which had just recovered from a negative value. In 2023, the P/FCFE ratio decreased slightly to 23.48 but remained elevated, indicating that the market continues to value the company at a premium relative to its free cash flow to equity.