Question 1

What is Hilton Worldwide Holdings Inc.'s WACC?

Accepted Answer

Hilton Worldwide Holdings Inc. (HLT) has a Weighted Average Cost of Capital (WACC) of 7.97%. This is calculated using a Cost of Equity of 8.61% (via CAPM with a beta of 1.02) and a pre-tax Cost of Debt of 5.03%, with an equity weight of 86.35% in the capital structure.

Question 2

Is Hilton Worldwide Holdings Inc.'s WACC high or low?

Accepted Answer

Hilton Worldwide Holdings Inc.'s WACC of 7.97% is below the typical range of 8-12% for most companies, indicating relatively low cost of capital and lower risk. WACC is used as the discount rate in DCF valuations — a lower WACC results in higher present values of future cash flows.

Question 3

How is Hilton Worldwide Holdings Inc.'s WACC calculated?

Accepted Answer

Hilton Worldwide Holdings Inc.'s WACC is calculated using the formula: WACC = (E/V × Re) + (D/V × Rd × (1-T)). The Cost of Equity (Re) of 8.61% is derived from the CAPM model using a beta of 1.02. The pre-tax Cost of Debt (Rd) is 5.03%. The capital structure is 86.35% equity and 13.65% debt.

Hilton Worldwide Holdings Inc. (HLT) — WACC 分析

WACC 构成

解读

Hilton Worldwide Holdings Inc.（HLT）WACC：7.97%

WACC计算器

Hilton Worldwide Holdings Inc.（HLT） WACC 解读

HLT 公司分析

HLT DCF 估值

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