Enterprise Value to EBITDA (EV/EBITDA)
Earnings before Interest, Tax, Depreciation and Amortization (EBITDA)
Hilton Worldwide Holdings Inc., EBITDA calculation
US$ in millions
Based on: 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31).
The financial performance of the entity between 2019 and 2023 is characterized by a severe contraction in 2020 followed by a robust multi-year recovery. Operational profitability, as measured by EBITDA, demonstrates a V-shaped trajectory, returning to and exceeding pre-2020 levels by the end of the analyzed period.
- EBITDA Performance and Trajectory
- EBITDA declined from US$ 2,004 million in 2019 to a deficit of US$ 164 million in 2020. A recovery was initiated in 2021, with EBITDA rising to US$ 1,145 million, and peaking in 2022 at US$ 2,311 million. Performance reached a plateau in 2023, ending at US$ 2,303 million, which represents a net increase of approximately 14.9% compared to the 2019 baseline.
- Operating and Pre-tax Income Trends
- EBIT and EBT mirrored the volatility and subsequent recovery observed in EBITDA. EBIT fell from US$ 1,658 million in 2019 to negative US$ 495 million in 2020, before climbing to US$ 2,156 million by 2023. EBT exhibited a similar pattern, dropping to negative US$ 924 million in 2020 and stabilizing at US$ 1,692 million in 2023.
- Net Income Volatility and Margin Analysis
- Net income attributable to stockholders showed the most significant fluctuations. After falling from US$ 881 million in 2019 to a loss of US$ 715 million in 2020, net income recovered to US$ 1,255 million in 2022. A slight decrease to US$ 1,141 million was observed in 2023, despite EBIT remaining relatively stable, suggesting an increase in non-operating expenses or tax obligations during that fiscal year.
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Enterprise Value to EBITDA Ratio, Current
Hilton Worldwide Holdings Inc., current EV/EBITDA calculation, comparison to benchmarks
| Selected Financial Data (US$ in millions) | |
| Enterprise value (EV) | 58,487) |
| Earnings before interest, tax, depreciation and amortization (EBITDA) | 2,303) |
| Valuation Ratio | |
| EV/EBITDA | 25.40 |
| Benchmarks | |
| EV/EBITDA, Competitors1 | |
| Airbnb Inc. | 28.74 |
| Booking Holdings Inc. | 14.00 |
| Chipotle Mexican Grill Inc. | 18.44 |
| DoorDash, Inc. | 44.71 |
| McDonald’s Corp. | 16.24 |
| Starbucks Corp. | 27.72 |
| EV/EBITDA, Sector | |
| Consumer Services | 21.81 |
| EV/EBITDA, Industry | |
| Consumer Discretionary | 26.26 |
Based on: 10-K (reporting date: 2023-12-31).
1 Click competitor name to see calculations.
If the company EV/EBITDA is lower then the EV/EBITDA of benchmark then company is relatively undervalued.
Otherwise, if the company EV/EBITDA is higher then the EV/EBITDA of benchmark then company is relatively overvalued.
Enterprise Value to EBITDA Ratio, Historical
Hilton Worldwide Holdings Inc., historical EV/EBITDA calculation, comparison to benchmarks
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||
| Enterprise value (EV)1 | 57,765) | 47,646) | 50,897) | 38,162) | 38,708) | |
| Earnings before interest, tax, depreciation and amortization (EBITDA)2 | 2,303) | 2,311) | 1,145) | (164) | 2,004) | |
| Valuation Ratio | ||||||
| EV/EBITDA3 | 25.08 | 20.62 | 44.45 | — | 19.32 | |
| Benchmarks | ||||||
| EV/EBITDA, Competitors4 | ||||||
| Airbnb Inc. | 40.65 | 36.61 | 338.63 | — | — | |
| Booking Holdings Inc. | 19.60 | 19.20 | 45.39 | — | — | |
| Chipotle Mexican Grill Inc. | 36.37 | 29.62 | 40.00 | — | — | |
| DoorDash, Inc. | — | — | — | — | — | |
| McDonald’s Corp. | 18.04 | 20.87 | 17.49 | — | — | |
| Starbucks Corp. | 17.75 | 19.88 | 18.77 | 38.99 | — | |
| EV/EBITDA, Sector | ||||||
| Consumer Services | 22.30 | 23.77 | 27.18 | — | — | |
| EV/EBITDA, Industry | ||||||
| Consumer Discretionary | 18.33 | 20.01 | 21.51 | — | — | |
Based on: 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31).
3 2023 Calculation
EV/EBITDA = EV ÷ EBITDA
= 57,765 ÷ 2,303 = 25.08
4 Click competitor name to see calculations.
The financial trajectory from 2019 to 2023 is characterized by significant volatility in operational earnings and a concurrent expansion in enterprise valuation.
- Enterprise Value (EV) Trends
- Enterprise value remained relatively stable between 2019 and 2020 before entering a growth phase. A substantial increase occurred in 2021, reaching 50,897 million USD, with a subsequent peak of 57,765 million USD by the end of 2023, representing a significant overall increase over the five-year period.
- EBITDA Performance
- Earnings before interest, tax, depreciation, and amortization experienced a severe contraction in 2020, falling to a negative value of 164 million USD. A recovery phase followed, with EBITDA rising to 1,145 million USD in 2021 and stabilizing at approximately 2.3 billion USD in both 2022 and 2023, effectively surpassing the 2,004 million USD recorded in 2019.
- EV/EBITDA Ratio Analysis
- The EV/EBITDA ratio exhibits extreme fluctuation corresponding to the operational volatility. In 2020, the ratio was not calculable due to negative earnings. A peak multiple of 44.45 was observed in 2021, reflecting a period where enterprise value recovered more rapidly than operational earnings. By 2022 and 2023, the ratio normalized to 20.62 and 25.08, respectively, indicating a stabilization of the valuation relative to current earnings power, though remaining slightly higher than the 19.32 ratio observed in 2019.
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