Common Stock Valuation Ratios (Price Multiples)
Valuation ratios measure the quantity of an asset or flaw (e.g., earnings) associated with ownership of a specified claim (e.g., a share of ownership of the enterprise).
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Hilton Worldwide Holdings Inc. pages available for free this week:
- Cash Flow Statement
- Analysis of Solvency Ratios
- Analysis of Short-term (Operating) Activity Ratios
- Analysis of Long-term (Investment) Activity Ratios
- Analysis of Geographic Areas
- Price to FCFE (P/FCFE)
- Present Value of Free Cash Flow to Equity (FCFE)
- Net Profit Margin since 2013
- Price to Operating Profit (P/OP) since 2013
- Aggregate Accruals
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Current Valuation Ratios
Hilton Worldwide Holdings Inc., current price multiples
| Hilton Worldwide Holdings Inc. | Airbnb Inc. | Booking Holdings Inc. | Chipotle Mexican Grill Inc. | McDonald’s Corp. | Starbucks Corp. | Consumer Services | Consumer Discretionary | ||||
|---|---|---|---|---|---|---|---|---|---|---|---|
| Selected Financial Data | |||||||||||
| Current share price (P) | |||||||||||
| No. shares of common stock outstanding | |||||||||||
| Earnings per share (EPS) | |||||||||||
| Operating profit per share | |||||||||||
| Sales per share | |||||||||||
| Book value per share (BVPS) | |||||||||||
| Valuation Ratios (Price Multiples) | |||||||||||
| Price to earnings (P/E) | |||||||||||
| Price to operating profit (P/OP) | |||||||||||
| Price to sales (P/S) | |||||||||||
Based on: 10-K (reporting date: 2023-12-31).
If the company price multiple is lower then the price multiple of benchmark then company stock is relatively undervalued.
Otherwise, if the company price multiple is higher then the price multiple of benchmark then company stock is relatively overvalued.
Historical Valuation Ratios (Summary)
Hilton Worldwide Holdings Inc., historical price multiples
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Price to earnings (P/E) | ||||||
| Price to operating profit (P/OP) | ||||||
| Price to sales (P/S) | ||||||
| Price to book value (P/BV) |
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 ratios of the company exhibit notable fluctuations over the analyzed periods, reflecting varying market perceptions and operational performance dynamics.
- Price to Earnings (P/E) Ratio
- The P/E ratio experienced a significant rise in 2021, reaching 106.44, which is a sharp increase from 35.57 in 2019 and an implied absence of data in 2020. This spike suggests a period where earnings were either substantially low or the market anticipated higher future growth despite current earnings. By 2022, the P/E ratio decreased to 32.02, indicating a normalization or improvement in earnings relative to share price, followed by an increase to 43.32 in 2023, which may suggest renewed investor optimism or earnings volatility.
- Price to Operating Profit (P/OP) Ratio
- This ratio showed a parallel trend to the P/E ratio, with a low of 18.91 in 2019 and a steep increase to 43.21 in 2021, indicating a significant change in operating profit levels relative to stock price or market valuation. The reduction to 19.19 in 2022 suggests an operational profit recovery or adjustment in valuation, followed by a moderate rise to 22.22 in 2023, implying stable yet cautious market evaluation of operating efficiency.
- Price to Sales (P/S) Ratio
- The P/S ratio doubled from 3.32 in 2019 to 7.18 in 2020 and slightly increased to 7.54 in 2021, which may reflect market confidence despite revenue constraints or a shift in sales expectations. Subsequent decreases to 4.58 in 2022 and a slight increase to 4.83 in 2023 indicate a period of revaluation or revenue growth balancing market valuation, suggesting a move towards a more moderate pricing relative to sales.
- Price to Book Value (P/BV) Ratio
- No data is available for this ratio across the reviewed periods, which limits the ability to assess the company’s market valuation relative to its book value.
Overall, the data depict periods of considerable volatility in valuation metrics, particularly in 2021, likely influenced by atypical market or operational circumstances. The subsequent trend towards moderate ratios in 2022 and 2023 indicates a phase of stabilization or market reassessment of earnings, operating profit, and sales in relation to the stock price.
Price to Earnings (P/E)
Hilton Worldwide Holdings Inc., historical P/E 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 | ||||||
| Selected Financial Data (US$) | ||||||
| Net income (loss) attributable to Hilton stockholders (in millions) | ||||||
| Earnings per share (EPS)2 | ||||||
| Share price1, 3 | ||||||
| Valuation Ratio | ||||||
| P/E ratio4 | ||||||
| Benchmarks | ||||||
| P/E Ratio, Competitors5 | ||||||
| Airbnb Inc. | ||||||
| Booking Holdings Inc. | ||||||
| Chipotle Mexican Grill Inc. | ||||||
| McDonald’s Corp. | ||||||
| Starbucks Corp. | ||||||
| P/E Ratio, Sector | ||||||
| Consumer Services | ||||||
| P/E Ratio, Industry | ||||||
| Consumer Discretionary | ||||||
Based on: 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31).
1 Data adjusted for splits and stock dividends.
2 2023 Calculation
EPS = Net income (loss) attributable to Hilton stockholders ÷ No. shares of common stock outstanding
= ÷ =
3 Closing price as at the filing date of Hilton Worldwide Holdings Inc. Annual Report.
4 2023 Calculation
P/E ratio = Share price ÷ EPS
= ÷ =
5 Click competitor name to see calculations.
- Share Price
- The share price showed stability between 2019 and 2020, with a slight decline from 112.94 US$ to 111.43 US$. A notable increase occurred in 2021, reaching 156.34 US$, followed by a modest decrease to 150.8 US$ in 2022. The upward trend resumed in 2023, culminating in a significant rise to 196.03 US$.
- Earnings per Share (EPS)
- EPS experienced a substantial drop from 3.18 US$ in 2019 to -2.58 US$ in 2020, reflecting a challenging period likely due to external factors. Recovery began in 2021 with EPS returning to positive territory at 1.47 US$, followed by strong growth to 4.71 US$ in 2022. In 2023, EPS slightly decreased to 4.52 US$, remaining at a high level compared to previous years.
- Price-to-Earnings (P/E) Ratio
- The P/E ratio was relatively high at 35.57 in 2019, became unavailable in 2020 due to negative EPS, then spiked sharply to 106.44 in 2021 as earnings were low but positive. In 2022, the ratio decreased significantly to 32.02, indicating improved earnings relative to share price. In 2023, it increased somewhat to 43.32, suggesting the market maintained relatively high expectations despite the slight dip in EPS.
- Overall Trends and Insights
- The data reflects a period of volatility around 2020, characterized by a sharp decline in earnings and negative profitability, likely related to extraordinary economic conditions. Subsequent years show a marked recovery in profitability and an increase in share price, with share price growth outpacing EPS gains, as indicated by fluctuating P/E ratios. The strong rebound in earnings in 2022 supported a more reasonable P/E ratio, while the 2023 figures suggest sustained investor confidence despite minor EPS decline.
Price to Operating Profit (P/OP)
Hilton Worldwide Holdings Inc., historical P/OP calculation, comparison to benchmarks
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| No. shares of common stock outstanding1 | ||||||
| Selected Financial Data (US$) | ||||||
| Operating income (loss) (in millions) | ||||||
| Operating profit per share2 | ||||||
| Share price1, 3 | ||||||
| Valuation Ratio | ||||||
| P/OP ratio4 | ||||||
| Benchmarks | ||||||
| P/OP Ratio, Competitors5 | ||||||
| Airbnb Inc. | ||||||
| Booking Holdings Inc. | ||||||
| Chipotle Mexican Grill Inc. | ||||||
| McDonald’s Corp. | ||||||
| Starbucks Corp. | ||||||
| P/OP Ratio, Sector | ||||||
| Consumer Services | ||||||
| P/OP Ratio, Industry | ||||||
| Consumer Discretionary | ||||||
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.
2 2023 Calculation
Operating profit per share = Operating income (loss) ÷ No. shares of common stock outstanding
= ÷ =
3 Closing price as at the filing date of Hilton Worldwide Holdings Inc. Annual Report.
4 2023 Calculation
P/OP ratio = Share price ÷ Operating profit per share
= ÷ =
5 Click competitor name to see calculations.
- Share Price Trend
- The share price exhibited a generally upward trajectory over the analyzed period. After a slight decline from $112.94 in 2019 to $111.43 in 2020, the price rose significantly to $156.34 in 2021. This was followed by a minor decrease to $150.80 in 2022 and then a notable increase to $196.03 in 2023, indicating growing investor confidence or improved market conditions.
- Operating Profit Per Share (OPPS)
- Operating profit per share showed considerable volatility. It decreased sharply from $5.97 in 2019 to a negative $1.51 in 2020, reflecting operational challenges during that year. However, there was a recovery starting in 2021, with OPPS reaching $3.62, followed by continued improvement to $7.86 in 2022 and $8.82 in 2023. This indicates a return to profitability and operational efficiency over the subsequent years.
- Price to Operating Profit Ratio (P/OP)
- The P/OP ratio demonstrates fluctuations consistent with the changes in operating profit and share price. The ratio was 18.91 in 2019 but could not be calculated for 2020 due to negative operating profit. It peaked at 43.21 in 2021, suggesting the share price was relatively high compared to operating profit, possibly indicating market optimism despite the initial recovery phase. In 2022, the ratio decreased to 19.19, reflecting improved operating profit relative to share price, and then increased moderately to 22.22 in 2023, suggesting a somewhat higher valuation relative to operating profit compared to the previous year.
- Overall Insights
- The data reveals a company experiencing operational difficulties in 2020, likely due to external factors impacting profitability. However, there has been a strong recovery in subsequent years, with operating profit per share improving steadily. The share price has generally trended upward, reflecting positive market sentiment or improved financial performance. The P/OP ratio indicates that despite improvements in operating profit, market valuation relative to earnings has fluctuated, suggesting periods of both cautious and optimistic investor expectations.
Price to Sales (P/S)
Hilton Worldwide Holdings Inc., historical P/S calculation, comparison to benchmarks
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| No. shares of common stock outstanding1 | ||||||
| Selected Financial Data (US$) | ||||||
| Revenues (in millions) | ||||||
| Sales per share2 | ||||||
| Share price1, 3 | ||||||
| Valuation Ratio | ||||||
| P/S ratio4 | ||||||
| Benchmarks | ||||||
| P/S Ratio, Competitors5 | ||||||
| Airbnb Inc. | ||||||
| Booking Holdings Inc. | ||||||
| Chipotle Mexican Grill Inc. | ||||||
| McDonald’s Corp. | ||||||
| Starbucks Corp. | ||||||
| P/S Ratio, Sector | ||||||
| Consumer Services | ||||||
| P/S Ratio, Industry | ||||||
| Consumer Discretionary | ||||||
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.
2 2023 Calculation
Sales per share = Revenues ÷ No. shares of common stock outstanding
= ÷ =
3 Closing price as at the filing date of Hilton Worldwide Holdings Inc. Annual Report.
4 2023 Calculation
P/S ratio = Share price ÷ Sales per share
= ÷ =
5 Click competitor name to see calculations.
- Share Price Trend
- The share price exhibited a moderate decline from $112.94 at the end of 2019 to $111.43 in 2020, reflecting a slight decrease. However, this was followed by a significant increase to $156.34 in 2021. After a minor decline to $150.80 in 2022, the share price rose substantially again, reaching $196.03 by the end of 2023. Overall, the share price demonstrated resilience and a strong upward trend post-2020.
- Sales Per Share Trend
- Sales per share experienced a sharp drop from $34.07 in 2019 to $15.51 in 2020, likely impacted by external factors affecting revenue. This metric showed a gradual recovery over the next three years, increasing to $20.74 in 2021, then significantly improving to $32.93 in 2022, and peaking at $40.59 in 2023. The steady improvement indicates a restoration and growth in sales efficiency on a per-share basis.
- Price-to-Sales (P/S) Ratio Trend
- The P/S ratio increased markedly from 3.32 in 2019 to 7.18 in 2020, implying the share price was high relative to the sales per share, possibly reflecting market optimism or a distorted valuation during 2020. It further edged up to 7.54 in 2021, then decreased to 4.58 in 2022, and slightly increased again to 4.83 in 2023. This trend suggests a normalization of valuation multiples after the initial surge, aligning more closely with improving sales figures in the recent years.
- Overall Analysis
- The data reveals a significant impact in 2020, with a decline in sales per share and a corresponding sharp increase in the P/S ratio, indicating market valuation disconnect amid reduced sales. Subsequently, the company experienced a consistent recovery in sales per share along with an increasing yet more balanced share price growth. The P/S ratio's reduction after 2021 points to a market recalibration towards fundamental sales performance. The overall positive trend in share price and sales per share by 2023 suggests restored investor confidence and improving business fundamentals.
Price to Book Value (P/BV)
Hilton Worldwide Holdings Inc., historical P/BV calculation, comparison to benchmarks
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| No. shares of common stock outstanding1 | ||||||
| Selected Financial Data (US$) | ||||||
| Total Hilton stockholders’ deficit (in millions) | ||||||
| Book value per share (BVPS)2 | ||||||
| Share price1, 3 | ||||||
| Valuation Ratio | ||||||
| P/BV ratio4 | ||||||
| Benchmarks | ||||||
| P/BV Ratio, Competitors5 | ||||||
| Airbnb Inc. | ||||||
| Booking Holdings Inc. | ||||||
| Chipotle Mexican Grill Inc. | ||||||
| McDonald’s Corp. | ||||||
| Starbucks Corp. | ||||||
| P/BV Ratio, Sector | ||||||
| Consumer Services | ||||||
| P/BV Ratio, Industry | ||||||
| Consumer Discretionary | ||||||
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.
2 2023 Calculation
BVPS = Total Hilton stockholders’ deficit ÷ No. shares of common stock outstanding
= ÷ =
3 Closing price as at the filing date of Hilton Worldwide Holdings Inc. Annual Report.
4 2023 Calculation
P/BV ratio = Share price ÷ BVPS
= ÷ =
5 Click competitor name to see calculations.
- Share Price
- The share price demonstrated variability over the five-year period. It started at $112.94 at the end of 2019 and experienced a slight decline to $111.43 in 2020. Following this, there was a notable increase to $156.34 in 2021, followed by a minor decrease to $150.80 in 2022. The most recent data from 2023 shows a significant rise to $196.03, reaching the highest value in the observed timeframe.
- Book Value per Share (BVPS)
- The book value per share consistently remained negative throughout the period, signifying negative equity on a per-share basis. Starting from -$1.74 in 2019, it deteriorated sharply to -$5.37 in 2020. This was partially reversed in 2021 to -$2.94, indicating some improvement. However, the value again declined to -$4.14 in 2022 and further dropped to -$9.36 in 2023, marking the lowest point over the period and suggesting a worsening in net asset value relative to shares outstanding.
- Price to Book Value Ratio (P/BV)
- This ratio was not provided; however, given that the book value per share is negative for all years, calculating a meaningful P/BV ratio would be impractical and could yield misleading interpretations.