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, primarily due to its high valuation compared to industry standards. One key metric is the Price to Earnings (PE) Ratio, which stands at 38.56, significantly higher than the sector average of 17.12. The PE ratio indicates how much investors are willing to pay for each dollar of earnings. A higher ratio suggests that the stock may be overvalued relative to its earnings potential. Additionally, the Price to Book (PB) Ratio for Hilton is 38.65, compared to the sector average of 2.04. The PB ratio indicates how much investors are paying for each dollar of net assets. A very high PB ratio can signal that a stock is overpriced relative to its underlying asset value. Although Hilton excels in other areas such as Net Profit Margin (13.74 versus sector 0.25) and Return on Equity (ROE) at 138.66 against the sector's 1.98, these strengths are overshadowed by its valuation metrics. Furthermore, Hilton's Dividend Yield of 0.24 is considerably lower than the sector average of 1.48, indicating that investors receive less income relative to their investment compared to other companies in the sector. In summary, Hilton Worldwide's high valuation ratios suggest that the stock may be overpriced in the current market landscape, raising concerns over future returns. 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.