Hilton Worldwide Return On Asset vs. Price To Earning
| HLT Stock | USD 208.08 4.60 2.26% |
| Current Value | Last Year | Change From Last Year | 10 Year Trend | ||||||
|---|---|---|---|---|---|---|---|---|---|
| Gross Profit Margin | 0.2 | 0.2863 |
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For Hilton Worldwide profitability analysis, we use financial ratios and fundamental drivers that measure the ability of Hilton Worldwide to generate income relative to revenue, assets, operating costs, and current equity. These fundamental indicators attest to how well Hilton Worldwide Holdings utilizes its assets to generate profit and value for its shareholders. The profitability module also shows relationships between Hilton Worldwide's most relevant fundamental drivers. It provides multiple suggestions of what could affect the performance of Hilton Worldwide Holdings over time as well as its relative position and ranking within its peers.
Hilton |
Hilton Worldwide's Revenue Breakdown by Earning Segment
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Is Hilton Worldwide's industry expected to grow? Or is there an opportunity to expand the business' product line in the future? Factors like these will boost the valuation of Hilton Worldwide. If investors know Hilton will grow in the future, the company's valuation will be higher. The financial industry is built on trying to define current growth potential and future valuation accurately. All the valuation information about Hilton Worldwide listed above have to be considered, but the key to understanding future value is determining which factors weigh more heavily than others.
Quarterly Earnings Growth 0.351 | Dividend Share 0.6 | Earnings Share 4.6 | Revenue Per Share 17.501 | Quarterly Revenue Growth 0.124 |
The market value of Hilton Worldwide Holdings is measured differently than its book value, which is the value of Hilton that is recorded on the company's balance sheet. Investors also form their own opinion of Hilton Worldwide's value that differs from its market value or its book value, called intrinsic value, which is Hilton Worldwide's true underlying value. Investors use various methods to calculate intrinsic value and buy a stock when its market value falls below its intrinsic value. Because Hilton Worldwide's market value can be influenced by many factors that don't directly affect Hilton Worldwide's underlying business (such as a pandemic or basic market pessimism), market value can vary widely from intrinsic value.
Please note, there is a significant difference between Hilton Worldwide's value and its price as these two are different measures arrived at by different means. Investors typically determine if Hilton Worldwide is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, Hilton Worldwide's price is the amount at which it trades on the open market and represents the number that a seller and buyer find agreeable to each party.
Hilton Worldwide Holdings Price To Earning vs. Return On Asset Fundamental Analysis
Comparative valuation techniques use various fundamental indicators to help in determining Hilton Worldwide's current stock value. Our valuation model uses many indicators to compare Hilton Worldwide value to that of its competitors to determine the firm's financial worth. Hilton Worldwide Holdings is rated # 4 in return on asset category among related companies. It is rated # 4 in price to earning category among related companies reporting about 385.67 of Price To Earning per Return On Asset. Comparative valuation analysis is a catch-all model that can be used if you cannot value Hilton Worldwide by discounting back its dividends or cash flows. This model doesn't attempt to find an intrinsic value for Hilton Worldwide's Stock. Still, instead, it compares the stock's price multiples to a benchmark or nearest competition to determine if the stock is relatively undervalued or overvalued. The reason why the comparable model can be used in almost all circumstances is due to the vast number of multiples that can be utilized, such as the price-to-earnings (P/E), price-to-book (P/B), price-to-sales (P/S), price-to-cash flow (P/CF), and many others. The P/E ratio is the most commonly used of these ratios because it focuses on the Hilton Worldwide's earnings, one of the primary drivers of an investment's value.Hilton Price To Earning vs. Return On Asset
Return on Asset or ROA shows how effective is the management of the company in generating income from utilizing all of the assets at their disposal. It is a useful ratio to evaluate the performance of different departments of a company as well as to understand management performance over time.
Hilton Worldwide |
| = | 0.0921 |
Return on Asset measures overall efficiency of a company in generating profits from its total assets. It is expressed as the percentage of profits earned per dollar of Asset. A low ROA typically means that a company is asset-intensive and therefore will needs more money to continue generating revenue in the future.
Price to Earnings ratio is typically used for current valuation of a company and is one of the most popular ratios that investors monitor daily. Holding a low PE stock is less risky because when a company's profitability falls, it is likely that earnings will also go down as well. In other words, if you start from a lower position, your downside risk is limited. There are also some investors who believe that low Price to Earnings ratio reflects the low pricing because a given company is in trouble. On the other hand, a higher PE ratio means that investors are paying more for each unit of profit.
Hilton Worldwide |
| = | 35.52 X |
Generally speaking, the Price to Earnings ratio gives investors an idea of what the market is willing to pay for the company's current earnings.
Hilton Price To Earning Comparison
Hilton Worldwide is currently under evaluation in price to earning category among related companies.
Hilton Worldwide Profitability Projections
The most important aspect of a successful company is its ability to generate a profit. For investors in Hilton Worldwide, profitability is also one of the essential criteria for including it into their portfolios because, without profit, Hilton Worldwide will eventually generate negative long term returns. The profitability progress is the general direction of Hilton Worldwide's change in net profit over the period of time. It can combine multiple indicators of Hilton Worldwide, where stable trends show no significant progress. An accelerating trend is seen as positive, while a decreasing one is unfavorable. A rising trend means that profits are rising, and operational efficiency may be rising as well. A decreasing trend is a sign of poor performance and may indicate upcoming losses.
| Last Reported | Projected for Next Year | ||
| Accumulated Other Comprehensive Income | -731 M | -767.5 M | |
| Operating Income | 2.2 B | 1.3 B | |
| Income Before Tax | 1.7 B | 1.8 B | |
| Net Income Applicable To Common Shares | 1.4 B | 1.5 B | |
| Net Income | 1.2 B | 1.2 B | |
| Income Tax Expense | 541 M | 568 M | |
| Total Other Income Expense Net | -107 M | -112.3 M | |
| Net Income From Continuing Ops | 1.3 B | 1.4 B | |
| Non Operating Income Net Other | 63.2 M | 66.4 M | |
| Interest Income | 471.5 M | 391.3 M | |
| Net Interest Income | -460 M | -483 M | |
| Change To Netincome | 135.7 M | 142.5 M | |
| Net Income Per Share | 4.35 | 4.57 | |
| Income Quality | 1.69 | 2.56 | |
| Net Income Per E B T | 0.67 | 0.58 |
Hilton Profitability Driver Comparison
Profitability drivers are factors that can directly affect your investment outlook on Hilton Worldwide. Investors often realize that things won't turn out the way they predict. There are maybe way too many unforeseen events and contingencies during the holding period of Hilton Worldwide position where the market behavior may be hard to predict, tax policy changes, gold or oil price hikes, calamities change, and many others. The question is, are you prepared for these unexpected events? Although some of these situations are obviously beyond your control, you can still follow the important profit indicators to know where you should focus on when things like this occur. Below are some of the Hilton Worldwide's important profitability drivers and their relationship over time.
Use Hilton Worldwide in pair-trading
One of the main advantages of trading using pair correlations is that every trade hedges away some risk. Because there are two separate transactions required, even if Hilton Worldwide position performs unexpectedly, the other equity can make up some of the losses. Pair trading also minimizes risk from directional movements in the market. For example, if an entire industry or sector drops because of unexpected headlines, the short position in Hilton Worldwide will appreciate offsetting losses from the drop in the long position's value.Hilton Worldwide Pair Trading
Hilton Worldwide Holdings Pair Trading Analysis
The ability to find closely correlated positions to Hilton Worldwide could be a great tool in your tax-loss harvesting strategies, allowing investors a quick way to find a similar-enough asset to replace Hilton Worldwide when you sell it. If you don't do this, your portfolio allocation will be skewed against your target asset allocation. So, investors can't just sell and buy back Hilton Worldwide - that would be a violation of the tax code under the "wash sale" rule, and this is why you need to find a similar enough asset and use the proceeds from selling Hilton Worldwide Holdings to buy it.
The correlation of Hilton Worldwide is a statistical measure of how it moves in relation to other instruments. This measure is expressed in what is known as the correlation coefficient, which ranges between -1 and +1. A perfect positive correlation (i.e., a correlation coefficient of +1) implies that as Hilton Worldwide moves, either up or down, the other security will move in the same direction. Alternatively, perfect negative correlation means that if Hilton Worldwide Holdings moves in either direction, the perfectly negatively correlated security will move in the opposite direction. If the correlation is 0, the equities are not correlated; they are entirely random. A correlation greater than 0.8 is generally described as strong, whereas a correlation less than 0.5 is generally considered weak.
Correlation analysis and pair trading evaluation for Hilton Worldwide can also be used as hedging techniques within a particular sector or industry or even over random equities to generate a better risk-adjusted return on your portfolios.Use Investing Themes to Complement your Hilton Worldwide position
In addition to having Hilton Worldwide in your portfolios, you can quickly add positions using our predefined set of ideas and optimize them against your very unique investing style. A single investing idea is a collection of funds, stocks, ETFs, or cryptocurrencies that are programmatically selected from a pull of investment themes. After you determine your investment opportunity, you can then find an optimal portfolio that will maximize potential returns on the chosen idea or minimize its exposure to market volatility.Did You Try This Idea?
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ETF themes focus on helping investors to gain exposure to a broad range of assets, diversify, and lower overall costs. The Large Cap ETFs theme has 573 constituents at this time.
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When running Hilton Worldwide's price analysis, check to measure Hilton Worldwide's market volatility, profitability, liquidity, solvency, efficiency, growth potential, financial leverage, and other vital indicators. We have many different tools that can be utilized to determine how healthy Hilton Worldwide is operating at the current time. Most of Hilton Worldwide's value examination focuses on studying past and present price action to predict the probability of Hilton Worldwide's future price movements. You can analyze the entity against its peers and the financial market as a whole to determine factors that move Hilton Worldwide's price. Additionally, you may evaluate how the addition of Hilton Worldwide to your portfolios can decrease your overall portfolio volatility.
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To fully project Hilton Worldwide's future profitability, investors should examine all historical financial statements. These statements provide investors with a comprehensive snapshot of the financial position of Hilton Worldwide Holdings at a specified time, usually calculated after every quarter, six months, or one year. Three primary documents fall into the category of financial statements. These documents include Hilton Worldwide's income statement, its balance sheet, and the statement of cash flows.