Is Hilton Worldwide Holdings, Inc. overvalued or undervalued?

Jun 25 2025 08:41 AM IST
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As of July 24, 2019, Hilton Worldwide Holdings, Inc. is considered overvalued with a high P/E ratio of 44 and negative financial metrics, indicating increased risk compared to its peers like Royal Caribbean and Marriott.
As of 24 July 2019, the valuation grade for Hilton Worldwide Holdings, Inc. moved from very expensive to risky. The company is currently viewed as overvalued. Key ratios include a P/E ratio of 44, an EV to EBITDA of 28.77, and a PEG ratio of 1.00, which indicate that the stock is trading at a premium compared to its earnings growth potential.

In comparison to peers, Royal Caribbean Group has a P/E of 22.06, while Marriott International, Inc. shows a P/E of 27.75, both suggesting that Hilton is priced significantly higher than its competitors. The negative price to book value of -16.78 and negative return on capital employed further highlight the risks associated with Hilton's valuation. Despite a strong recent performance, with a 1-year return of 16.89% compared to the S&P 500's 10.26%, the overall financial metrics suggest that Hilton Worldwide is overvalued in the current market.
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