Orin
HLTNYSE·Travel Lodging

Hilton Worldwide Holdings Inc. HLT

Market cap $70.0BP/E 45.4× trailingGross margin 44.1%Reports Wed 28 Oct, before the open
$311.15
−0.98 (−0.31%)live 11:25 ET
52-wk $253.54 – $358.00
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Orin's take
0.62conviction · moderate
Refreshed 24 Sep · take v7. A new filing or a print queues the next refresh.

Hilton's asset-light franchise model keeps executing — Q2 2026 revenue grew 6.5% YoY to $3.34B with EPS of $2.10 versus $1.84 a year earlier, and the company has beaten EPS estimates for eight straight quarters — but the stock at $307.22 trades at 44.65x trailing earnings, a 56% premium to the peer median of 28.69x, while sitting below both its 50-day ($318.45) and 200-day ($314.62) moving averages. FY2025 net income declined 5.1% to $1.46B even as revenue rose 7.7% to $12.04B, with total debt climbing to $13.09B and stockholders' equity at -$5.39B, signaling rising interest costs that compress the bottom line.

With 24-month insider net selling of $32.7M and a smart money score of -0.042 as of Q2 2026, the premium valuation lacks validation from sophisticated buyers, keeping this a hold until either the multiple compresses toward peers or earnings growth clearly reaccelerates.

What could go wrong

  • Premium valuation. At 44.65x P/E versus a peer median of 28.69x (a 56% premium) and 26.56x EV/EBITDA versus 18.39x, any earnings miss or guidance cut could trigger sharp multiple compression.
  • Leverage and negative equity. Total debt reached $13.09B at FY2025 end with stockholders' equity at -$5.39B; rising interest costs already contributed to a 5.1% net income decline despite 7.7% revenue growth.
  • Insider selling. 24-month insider net selling of $32.7M across 102 transactions with no cluster buys; recent September 2026 sales by Director Carr and officer Fuentes continue the disposition pattern.
  • Travel demand cyclicality. As a consumer cyclical lodging name, any macro slowdown or travel demand softening could pressure RevPAR growth, which underpins the fee-driven revenue model.

What would change my mind

P/E reversion toward peer median. Stock price declines such that trailing P/E approaches the peer median of ~28.7x, improving the risk-reward entry pointbullish
Net income reacceleration. Quarterly EPS growth turns clearly positive YoY for two consecutive quarters, indicating interest costs are no longer outpacing operating leveragebullish
RevPAR or unit growth slowdown. Quarterly revenue YoY growth falls below 4% or management guides down full-year RevPAR, signaling demand deteriorationbearish
Debt upgrade or material deleveraging. Total debt declines below $12B or credit rating improves, reducing interest expense pressure on net incomebullish

Where this comes from: quarterly_results Q2 2026 and Q2 2025 · earnings_surprises, all eight listed quarters show positive surprise_pct · peer_relative · technicals as of 2026-09-23. Orin's read on HLT; not advice.

Twelve months actual closes to 2026-09-24 · actual filings

Sept 25Nov 25Jan 26Mar 26May 26Jul 26

50-day average 200-day average · volume below

Largest holders · 13F Q2 2026

Money flow
FilerPositionOf fund
Brasada Capital Management$6.3B1.1% of fund
Vanguard Capital Management$4.9B0.1% of fund
Fmr$3.7B0.2% of fund
State Street$3.2B0.1% of fund
Jpmorgan Chase &$2.6B0.1% of fund
Vanguard Portfolio Management$2.5B0.1% of fund

118 filers · quarter ended Q2 2026 · positions, not flows

Insiders, last 24 months: 102 Form 4 filings, net −$32.7M. Of the 50 on hand, 0 were open-market purchases and 3 sales— the rest are grants, option exercises and tax withholding.

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Where it trades

vs its own 5y · Consumer Cyclical
MetricNowOwn medianSector
P/E45.4×41.8×79.6×
EV/EBITDA26.9×28.7×—
P/S5.63×5.47×—

Its P/E sits 60th percentile of its own last 5 years (−0.26σ from its own mean).

What the price assumes

15.8%

free-cash-flow growth every year for 10 years, discounted at 10%, is what today’s price implies — starting from $1.9B of trailing free cash flow. It is an assumption the market is making, not a forecast Orin is making.

What Wall Street published

49 firms · 2026-09-24
Consensus target

$348

$316 – $379 · +12% against today's price

How they rate it
  • 28 buy or overweight
  • 21 hold
  • 0 underweight or sell

The analysts’ consensus and their own ratings, not Orin’s. A target is a twelve-month opinion published by the firm that wrote it.

Against the companies it is compared to

median P/E 31.3× of 6 peers
CompanyMarket capP/EEV/EBITDAGrossNetROE
HLTHilton Worldwide Holdings Inc.$70B45.4×26.9×44.1%12.7%-28%
ABNBAirbnb, Inc.$90B34.3×28.4×78.0%20.4%33%
AZOAutoZone, Inc.$47B18.3×14.1×52.3%12.6%-90%
FFord Motor Company$50B——10.8%-3.9%-19%
GMGeneral Motors Company$73B40.3×13.7×5.7%1.0%3%
MARMarriott International, Inc.$92B36.6×23.1×20.2%9.6%-67%
RCLRoyal Caribbean Cruises Ltd.$64B14.7×12.0×46.6%23.6%44%
ROSTRoss Stores, Inc.$76B28.3×18.5×29.9%10.8%42%

The median is of the 6 peers listed above and nothing else — check it against the column. This company trades 45.2% above it. The peer set is the vendor’s, so a company can appear here that a person would not have chosen.

What it has traded at

P/E by fiscal year
FY14 26.2×FY25 46.5×

What its sector has traded at

Consumer Cyclical
FY14 393.1×FY26 81.0×

Two scales, drawn separately on purpose: a sector median and one company’s multiple are not the same number and putting them on one axis invites a comparison neither series supports.

Discounted cash flow

not recomputed since
ModelFair valueAgainstComputed
Standard DCF$137$338.20 · −59%2026-06-10
Levered DCF$223$338.20 · −34%2026-06-10

The vendor’s intrinsic-value models. Treat them as a low-growth anchor — for a fast grower the market routinely pays well above a DCF. These were computed against the price in the “against” column, not today’s.

Every estimate on one scale

price $311.15
52-week range$254 – $358
Analyst targets$316 – $379
Standard DCF$137 as of 2026-06-10, when it was $338.20
Levered DCF$223 as of 2026-06-10, when it was $338.20
At own 5y-median P/E (42×)$288
At 5y P/E range (28–106×)$191 – $730
At sector P/E (80×)$548

The vertical rule is the current price. Ranges and point estimates are the backend’s, published as they were calculated; an arrow means the estimate sits beyond this scale, and its number is on the right.