Equity research of Hilton Worldwide Holdings Inc.

• Autor(a) principal: Almeida, José Pedro Rodrigues de
• Data de Publicação: 2022
• Tipo de documento: Dissertação
• Idioma: eng
• Título da fonte: Repositório Científico de Acesso Aberto de Portugal (Repositórios Cientìficos)
• Texto Completo: http://hdl.handle.net/10071/26423
• topic: Hilton Worldwide Holdings; Hospitality Industry; Avaliação de empresas -- Business valuation; DCF Discounted Cash Flow --; Multiples; Indústria da hospitalidade; Múltiplos

This master’s project addresses the valuation of Hilton Worldwide Holdings, and its primary purpose is to set the target share price for the end of the year 2020. In addition, it aims to provide investors with an investment recommendation based on the difference between the actual close price and the target share price obtained during this valuation exercise. Over the last century, with a worldwide presence, Hilton has become a highly recognized and respected name in the hospitality industry. In 2020 the company faced a massive challenge, initially due to the temporary suspension of most businesses with the several lockdowns, and then with the readaptation to what the future will entail. At this moment, Hilton is in charge of the difficult task of recovering in a world full of uncertainties. To accomplish this valuation exercise we applied a model of the Discounted Cash Flow approach, the Free Cash Flow to the Firm, followed by a Relative Valuation using multiples. To obtain the target share price were assumed several assumptions based on the company's recent performance and macroeconomic projections. The outputs provided across both models suggest that Hilton’s shares, as of 31 December 2020, were under their fair value and therefore, we issued a BUY recommendation.