Yahoo Finance Is Now The Time To Look At Buying Hilton Worldwide Holdings Inc. (NYSE:HLT)?
Let's talk about the popular Hilton Worldwide Holdings Inc. (NYSE:HLT). The company's shares saw significant share price movement during recent months on the NYSE, rising to highs of US$214 and falling to the lows of US$182. Some share price movements can give investors a better opportunity to enter into the stock, and potentially buy at a lower price. A question to answer is whether Hilton Worldwide Holdings' current trading price of US$194 reflective of the actual value of the large-cap? Or is it currently undervalued, providing us with the opportunity to buy? Let’s take a look at Hilton Worldwide Holdings’s outlook and value based on the most recent financial data to see if there are any catalysts for a price change.
Check out our latest analysis for Hilton Worldwide Holdings
Is Hilton Worldwide Holdings Still Cheap?
Hilton Worldwide Holdings appears to be overvalued by 27% at the moment, based on our discounted cash flow valuation. The stock is currently priced at US$194 on the market compared to our intrinsic value of $153.57. This means that the opportunity to buy Hilton Worldwide Holdings at a good price has disappeared! If you like the stock, you may want to keep an eye out for a potential price decline in the future. Given that Hilton Worldwide Holdings’s share is fairly volatile (i.e. its price movements are magnified relative to the rest of the market) this could mean the price can sink lower, giving us another chance to buy in the future. This is based on its high beta, which is a good indicator for share price volatility.
What does the future of Hilton Worldwide Holdings look like?
Investors looking for growth in their portfolio may want to consider the prospects of a company before buying its shares. Buying a great company with a robust outlook at a cheap price is always a good investment, so let’s also take a look at the company's future expectations. With profit expected to grow by 85% over the next couple of years, the future seems bright for Hilton Worldwide Holdings. It looks like higher cash flow is on the cards for the stock, which should feed into a higher share valuation.
What This Means For You
Are you a shareholder? HLT’s optimistic future growth appears to have been factored into the current share price, with shares trading above its fair value. At this current price, shareholders may be asking a different question – should I sell? If you believe HLT should trade below its current price, selling high and buying it back up again when its price falls towards its real value can be profitable. But before you make this decision, take a look at whether its fundamentals have changed.
Are you a potential investor? If you’ve been keeping an eye on HLT for a while, now may not be the best time to enter into the stock. The price has surpassed its true value, which means there’s no upside from mispricing. However, the positive outlook is encouraging for HLT, which means it’s worth diving deeper into other factors in order to take advantage of the next price drop.
If you want to dive deeper into Hilton Worldwide Holdings, you'd also look into what risks it is currently facing. Case in point: We've spotted 3 warning signs for Hilton Worldwide Holdings you should be aware of.
If you are no longer interested in Hilton Worldwide Holdings, you can use our free platform to see our list of over 50 other stocks with a high growth potential.
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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.
