HLT is now overvalued and could go down -34%

Based on our analysis, Hilton Worldwide Holdings has received an overvalued rating of 1 out of 5 stars from Cashu due to several key financial ratios that indicate potential concerns regarding its valuation relative to industry norms. The Price-to-Earnings (PE) ratio for Hilton stands at 36.62, significantly higher than the sector average of 17.12. A high PE ratio suggests that investors are paying more for each dollar of earnings, which may indicate overvaluation, especially if earnings growth does not keep pace. Additionally, Hilton's Price-to-Book (PB) ratio is 38.65, far exceeding the sector average of 2.04. This ratio compares a company's market value to its book value; a high PB ratio can imply that the stock is overvalued compared to its net asset value. The Dividend Yield for Hilton is only 0.27, which is much lower than the sector average of 1.48. A lower dividend yield means that investors receive a smaller return on their investment in the form of dividends, which can be a concern for income-focused investors. While Hilton boasts impressive figures in other areas, such as a net profit margin of 13.74 and a return on equity (ROE) of 138.66, these strengths do not mitigate the risks presented by its elevated valuation ratios. These financial indicators suggest that Hilton may be overvalued compared to its peers, warranting a cautious approach from potential investors. This is not a comprehensive overview of our valuation, and should not be viewed as financial advice. Always do your own research before considering an investment.