Value Sense
HLT
Hilton Worldwide Holdings Inc. (HLT)
Last Price$231.8(3.0%)
Market Cap$56.5B
WACC
8.8%
Cost of Equity
10.2%
Cost of Debt
2.0%
Debt to Equity
21.3%
Beta
0.8
Stock quality
6/10
Good
HLT
is 44.4% overvalued
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HLT WACC

Recent WACC calculation

as of Mar 11, 2025
Cost of Equity
% share of Total Capital
10.2%
82.5%
Risk-free rate
4.3%
Beta
1.3
Equity Risk Premium
4.6%
Country risk premium
0.0%
Cost of Debt (after-tax)
% share of Total Capital
2.0%
17.5%
Average Cost of Debt
1.3%
Effective Tax Rate
(50.3%)
WACC
8.8%

WACC dynamics

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HLT Cost of Equity

Recent Cost of Equity calculation

as of Mar 11, 2025
Risk-free rate
4.3%
Beta
1.3
Equity risk premium
4.6%
Country risk premium
0.0%
Cost of Equity
10.2%

Cost of Equity dynamics

HLT vs Peer Set: Discount Rate Comparison

WACC
Cost of Equity

General

Discount rate

financials

Company name

Revenue growth

EPS growth

Net Income margin

Hilton Worldwide Holdings Inc. logo
Hilton Worldwide Holdings Inc.HLT
8.8%
9.2%
42.3%
13.7%
Median Peer Set
7.5%
5.8%
6.4%
16.6%
Marriott International, Inc. logo
Marriott International, Inc.MAR
9.3%
5.8%
(18.3%)
9.5%
Hyatt Hotels Corporation logo
Hyatt Hotels CorporationH
8.7%
(0.3%)
518.6%
19.5%
Atour Lifestyle Holdings Limited logo
Atour Lifestyle Holdings LimitedATAT
8.1%
95.7%
549.8%
15.8%
Choice Hotels International, Inc. logo
Choice Hotels International, Inc.CHH
8.0%
2.6%
23.7%
18.9%
Wyndham Hotels & Resorts, Inc. logo
Wyndham Hotels & Resorts, Inc.WH
7.5%
0.8%
6.4%
20.5%
H World Group Limited logo
H World Group LimitedHTHT
6.0%
49.8%
N/A
18.7%
GreenTree Hospitality Group Ltd. logo
GreenTree Hospitality Group Ltd.GHG
4.4%
63.4%
N/A
16.6%
Soho House & Co Inc. logo
Soho House & Co Inc.SHCO
3.3%
16.8%
(45.5%)
(10.4%)
The InterGroup Corporation logo
The InterGroup CorporationINTG
2.7%
0.9%
47.2%
(16.9%)

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FAQ

What is Hilton Worldwide Holdings Inc.'s discount rate as of Mar 11, 2025?

As of Mar 11, 2025, Hilton Worldwide Holdings Inc.'s discount rate is 8.78%. This rate is determined based on the weighted average cost of capital (WACC) and the cost of equity, factoring in Hilton Worldwide Holdings Inc.'s capital structure and risk profile.

What is Hilton Worldwide Holdings Inc.'s weighted average cost of capital (WACC)?

Hilton Worldwide Holdings Inc.'s WACC as of Mar 11, 2025, is 8.78%. This value is calculated by blending the cost of debt and cost of equity, reflecting the company’s overall cost of financing its operations.

What is Hilton Worldwide Holdings Inc.'s cost of equity?

Hilton Worldwide Holdings Inc.'s cost of equity is 10.2%, as of Mar 11, 2025. This is the return that shareholders expect based on the stock's risk level and market conditions, used to calculate the discount rate for valuing future cash flows.