Buffett Brain · Research note
Score updated 26 Sept 2026 · analysis from 18 Aug 2026
HLT· Consumer Discretionary
Hilton Worldwide Holdings
Hilton's strong brand and high operating margins are offset by a stretched valuation and significant leverage.
Buffett fit
Partial fit
Owner
50
Durability
97
Management
100
Price
3
Score updated 26 Sept 2026 · analysis from 18 Aug 2026
Buffett's checklist
Each number against Buffett's bar, and where it ranks among Consumer Discretionary stocks in our database.
How much profit the business makes on each dollar invested in it. Higher is better.
What is left of each sale after the cost of making the product. A high number often means pricing power.
The cash the business earns for its owners, compared with the price of the whole company.
How fast sales grew each year over the last five years.
How many years of today's profit you pay for at today's price. Lower means cheaper.
How much the company owes compared with what it owns outright. Lower is safer.
The four pillars
How the business measures up on each of Buffett's four tests.
Owning Hilton would mean leveraging its strong brand and franchise model to generate steady cash flows.
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Hilton's brand offers a durable competitive advantage, reflected in its top-quintile of 23.1%.
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Hilton has effectively reduced its share count by 4.1% annually over the past five years, and its yield stands at 2.7%.
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Hilton's valuation is stretched, with a of 48.7 and an EV/ of 32.3, translating to an earnings yield of 2.05% and an yield of 2.72%.
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For and against
The strongest points on each side, with the numbers behind them.
In its favor
5- 123.1% is top-quintile in the sector.
- 2EPS CAGR of 43.19% over the last five years.
- 3Share count reduced by 4.1% annually, indicating strong .
- 4Brand portfolio includes strong names such as Waldorf Astoria and Hilton Hotels.
Concerns
5- 1 ratio of 48.7 indicates a high valuation.
- 2Net debt/EBITDA of 4.14 suggests significant .
- 3Interest coverage ratio of 4.5 is below the preferred 5x.
- 4Current ratio of 0.61 indicates potential liquidity issues.
Price history
$345+139.4%· 5-year return
Weekly closing prices. Touch or hover the line for a date.
The business
How the business works
Hilton operates by managing, franchising, and leasing hotels, with a portfolio of brands like Waldorf Astoria and Hilton Hotels & Resorts. The Management and Franchise segment is capital-light, generating fees from hotel operations, while the Ownership segment involves direct hotel operations. The company reported $12.04B in revenue with a 23.1% , which is top-quintile in its sector. This indicates strong unit economics, particularly in the Management and Franchise segment.
How this analysis has moved
The call has held across 4 reviews.
Sep 27, 2026 → Oct 17, 2026
What other investors would say
The same company, judged by three other documented playbooks.
Keep researching
Similar companies in Consumer Discretionary
Questions about Hilton Worldwide Holdings
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