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Hilton Worldwide Holdings Inc. (HLT) — WACC Analysis

WACC Breakdown

Hilton Worldwide Holdings Inc. (HLT) has a weighted average cost of capital (WACC) of 8.2%. The cost of equity is 8.9%, derived from a beta of 0.98 and a risk-free rate of 4.7%. The after-tax cost of debt is 4.2%. The capital structure is 85.1% equity and 14.9% debt.

Interpretation

A WACC of 8.2% is moderate, reflecting the market's balanced risk assessment of Hilton Worldwide Holdings Inc..

Investors can compare HLT's WACC of 8.2% against industry peers to gauge its relative financing costs. A beta of 0.98 reflects the stock's volatility relative to the broader market.

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VALUATION

HLT WACC: 8.19% for Hilton Worldwide Holdings Inc.

Current inputs imply a 8.90% cost of equity and a 5.26% pre-tax cost of debt. Use this discount rate as a starting point for DCF validation.

[01]Current Market Data
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WACC Calculation Process
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Market Data Loaded
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Company Data Fetched
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Beta Calculated (5Y)
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Inputs Auto-Populated
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WACC Calculated
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Step 2: Enter Ticker Symbol
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Step 4: Review Auto-Populated WACC Inputs

Values are automatically populated from real data. You can adjust them manually if needed.

4.30%
1.000
4.23%
5.00%
21.00%
70.00%
Debt: 30.00%Equity: 70.00%

Please enter a valid company ticker to calculate WACC

Hilton Worldwide Holdings Inc. Common Stock (HLT) WACC Results
Weighted Average Cost of Capital
8.19%
Cost of Equity
8.90%
Risk-Free Rate4.73%
Beta0.98
Market Risk Premium4.23%
Cost of Debt
4.16%
Pre-Tax Cost of Debt5.26%
Tax Rate21.00%
Tax Shield1.10%
Capital Structure
Equity: 85.06%($72.44B)
Debt: 14.94%($12.72B)
Equity Component
7.57%
85.06% × 8.90%
Debt Component
0.62%
14.94% × 4.16%

Hilton Worldwide Holdings Inc. (HLT) WACC in context

Hilton Worldwide Holdings Inc. (HLT) currently screens with an estimated WACC of 8.19%. That blends a 8.90% cost of equity, a 5.26% pre-tax cost of debt, and a 85.06% equity weight into the discount rate you would typically use in a DCF model.

falls into a common range for established public companies and is a practical DCF starting point.

What HLT WACC implies

A 8.19% discount rate falls into a common range for established public companies and is a practical DCF starting point.

How this page calculates HLT

This page combines CAPM-based cost of equity with SEC-derived debt and capital structure inputs. The current beta is 0.98 and equity accounts for 85.06% of capital.

What to do next

Validate business quality on the company page, then carry the same discount-rate assumptions into the DCF page to test fair value sensitivity.

Disclaimer: This is not financial advice. Data sourced from SEC EDGAR and Polygon.io. Past performance does not guarantee future results. Always conduct your own research before making investment decisions.