Is Hilton Grand Vacations, Inc. overvalued or undervalued?

As of 7 July 2025, the valuation grade for Hilton Grand Vacations, Inc. has moved from expensive to very expensive, indicating a significant concern regarding its current pricing. The company appears to be overvalued based on key metrics, including a P/E ratio of 29, an EV to EBITDA of 11.40, and a Price to Book Value of 2.32. In comparison, peers such as Jones Lang LaSalle, Inc. and Howard Hughes Holdings, Inc. have P/E ratios of 25.21 and 18.48, respectively, suggesting that Hilton Grand Vacations is trading at a premium relative to its industry counterparts.
Despite a strong performance year-to-date with a return of 15.22% compared to the S&P 500's 12.22%, the long-term outlook is less favorable, as the company has underperformed the index over the last three years with a return of 16.06% versus 70.41% for the S&P 500. This combination of high valuation ratios and relative underperformance supports the conclusion that Hilton Grand Vacations, Inc. is overvalued.