Hilton Worldwide Holdings Inc. (HLT) — Fundamental Analysis & Key Financial Ratios

Kaplio's reading: Hilton Worldwide Holdings Inc.

Updated on October 28, 2026 · accounts published on October 27, 2026

A highly profitable business with widening margins and a heavy debt load

Hilton Worldwide trades at a P/E of 49.2 over the last 12 months, 168 % above its sector median and higher than in 89 % of the last decade.

• Is Hilton Worldwide expensive or cheap? Hilton Worldwide's P/E of 49.2 is 168 % above its sector median and higher than in 89 % of the last decade.
• How is the business doing? Operating margin reached 24 % over the last 12 months, above the 18.5 % average of 2014-2025, while EPS fell 0.3 %.
• How strong is the balance sheet in a recession? Net debt stood at 4.2× EBITDA in fiscal 2025, above the 3.0× ceiling considered healthy for consumer cyclicals.
• What to expect from the next earnings? Analysts expect EPS of $2.39 when Hilton Worldwide reports on February 10, 2027, after beating estimates in 8 of 8 quarters.

Is Hilton Worldwide expensive or cheap?

Over the last 12 months Hilton Worldwide trades at a P/E of 49.2, 33 % above its ten-year median of 37.1, within a decade range of 11.4 to 61.9. Against a sector median of 18.4 across 212 companies, the premium is 168 %. An earnings yield of 1.8 % and a free cash flow yield of 2.5 % leave a thin cushion. Peter Lynch warned that the P/E misleads with cyclicals, and against its own five-year average of 52.4 this multiple is neutral, while fiscal 2025 EV/sales of 6.6× sits close to its ten-year average of 6.2×. The stock is up 42 % in 12 months.

How is the business doing?

Over the last 12 months revenue grew 7.7 % while EPS slipped 0.3 %, so sales growth is not reaching earnings per share. The operating margin of 24 % over the last 12 months is above the 22.4 % of fiscal 2025 and the 2014-2025 average of 18.5 %, with a net margin of 13.4 %. Return on capital has been less steady: ROIC topped 10 % in only 4 of the last 10 fiscal years, with a low of −2.2 % in 2020. The five-year averages, a 21.3 % operating margin and a 12.6 % ROIC, clear the sector bars of 8 % and 12 %, the second only just.

How strong is the balance sheet in a recession?

Hilton Worldwide carried net debt of $54.22 per share in fiscal 2025, equal to 14.9 % of the current share price and 4.2× EBITDA. In consumer cyclicals, where earnings can shrink fast in a downturn, debt is judged against EBITDA and healthy is below 3.0×, so this test fails. The Altman Z of 2.9 over the last 12 months sits in the grey zone, just short of the 2.99 safe line, and the Piotroski score is 6 of 9. Cash returned through dividends is small: a 0.2 % yield and a payout of 10 % of fiscal 2025 earnings. In a recession, leverage would be the weak point, more than margins.

What to expect from the next earnings?

Hilton Worldwide reports again on February 10, 2027, and analysts expect EPS of $2.39 for the quarter. On October 27, 2026 it posted $2.45 against $2.37 expected, a 3.4 % beat, and it has topped EPS estimates in 8 of the last 8 quarters. The 2026 EPS consensus barely moved over the last 30 days, from $9.04 to $9.05 across 17 analysts, and the revenue consensus was also stable. Of the 49 analysts covering the company, 28 recommend buying, 21 holding and none selling. With a P/E of 49.2, the market already counts on that run of beats continuing.

How this was prepared: the data comes from companies' official filings, collected by a professional provider, and from Kaplio's analysis engine (trailing-12-month ratios, 10 years of history and sector medians computed across US-listed companies). The text is written from that data alone, every figure is checked against it before publication, and it is reviewed when the company reports results. This is not investment advice.