Hilton Worldwide Holdings Inc. (HLT)

FairStock Score: 52/100 — MIXED

Key Financials

AI Analysis

AI-generated, general educational analysis — not personal investment advice.

At the 2026-10-26 close of $351.89, Hilton's FairStock-calculated P/E is 51.60, PEG 5.29, EV/EBITDA 29.66, and FCF yield just 2.4%. Those are demanding numbers. The business itself is high quality: it manages, franchises, and leases hotels under a broad brand portfolio, an asset-light model that can earn attractive returns without owning every property. In fiscal 2025 (period ended 2025-12-31), revenue was $12.0B and net income $1.5B, or diluted EPS of $6.12, versus fiscal 2024 (period ended 2024-12-31) revenue of $11.2B, net income of $1.5B, and diluted EPS of $6.14 - so the latest full year showed essentially no EPS growth. More recent quarters were better: in fiscal Q2 2026 (quarter ended 2026-06-30), revenue was $3.3B, net income $482.0M, and diluted EPS $2.10, compared with fiscal Q2 2025 (quarter ended 2025-06-30) revenue of $3.1B, net income $440.0M, and diluted EPS $1.84. FairStock still classifies it as a FAST GROWER, citing 37.3% annual profit growth over four years and 20.1% revenue growth, but the 5.29 PEG says much of that is already in the price. Financial health looks decent - Piotroski 7/9, Altman 2.21, ROCE 11.03%, and $1.9B trailing free cash flow - but the 0.17% dividend and 2.4% FCF yield offer little current return. I admire the franchise; I do not see a margin of safety at this price.

In plain English: Hilton manages and franchises hotels around the world under brands such as Waldorf Astoria and Conrad. The business looks strong: in fiscal 2025 (the year ended 2025-12-31) it reported $12.0 billion of revenue, and over the last twelve months it generated about $1.9 billion of spare cash. At the 2026-10-26 close of $351.89, the price looks expensive compared with its profits and cash flow.

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Data as of 2026-10-26 close · note generated 2026-10-28 · model deepseek-flash

Sources (SEC EDGAR): fiscal Q2 2026 10-Q (period ended 2026-06-30) · fiscal Q1 2026 10-Q (period ended 2026-03-31) · fiscal Q3 2025 10-Q (period ended 2025-09-30) · fiscal Q2 2025 10-Q (period ended 2025-06-30) · FY2025 10-K (period ended 2025-12-31) · FY2024 10-K (period ended 2024-12-31) · FY2023 10-K (period ended 2023-12-31)

Fundamentals from company filings and market-data providers; prices are end-of-day, not real-time. AI-generated analysis is general and educational — not personal investment advice. Scoring methodology · Score test · Disclaimer