Hilton Worldwide Hol has a beta of 2.0628. Let's try to break down what Hilton's beta means in this case. As the market goes up, the company is expected to outperform it. However, if the market returns are negative, Hilton Worldwide will likely underperform. The beta indicator helps investors understand whether Hilton Worldwide moves in the same direction as the rest of the market, and how volatile (i.e., risky) it is compared to the market (i.e., selected benchmark). In other words, if Hilton deviates very little from the market, it does not add much risk to the portfolio, but it also doesn't increase the expected returns.
There are currently many different techniques concerning forecasting the market as a whole as well as
predicting future values of individual securities such as Hilton Worldwide Holdings. Regardless of method or technology, to accurately forecast the stock market is more a matter of luck rather than a particular technique. Nevertheless, trying to predict the stock market accurately is still an essential part of the overall investment decision process. Using different forecasting techniques and comparing the results might improve your chances of accuracy even though unexpected events may often change the
market sentiment and impact your forecasting results.
Predictive Modules for Hilton Worldwide
Sophisticated investors, who have witnessed
many market ups and downs, anticipate that the market will even out over time. This tendency of Hilton Worldwide's price to converge to an average value over time is called mean reversion. However, historically, high market prices usually discourage investors that believe in mean reversion to invest, while low prices are viewed as an opportunity to buy.
Please note, it is not enough to conduct a financial or market analysis of a single entity such as Hilton Worldwide. Your research has to be compared to or analyzed against Hilton Worldwide's peers to derive any actionable benefits. When done correctly, Hilton Worldwide's competitive analysis will give you plenty of quantitative and qualitative data to validate your investment decisions or develop an entirely new strategy toward taking a position in Hilton Worldwide Holdings.
How important is Hilton Worldwide's Liquidity
Hilton Worldwide
financial leverage refers to using borrowed capital as a funding source to finance Hilton Worldwide Holdings ongoing operations. It is usually used to expand the firm's asset base and generate returns on borrowed capital. Hilton Worldwide financial leverage is typically calculated by taking the company's all interest-bearing debt and dividing it by total capital. So the higher the debt-to-capital ratio (i.e., financial leverage), the riskier the company. Financial leverage can amplify the potential profits to Hilton Worldwide's owners, but it also increases the potential losses and risk of financial distress, including bankruptcy, if the firm cannot cover its debt costs. The degree of Hilton Worldwide's financial leverage can be measured in several ways, including by ratios such as the debt-to-equity ratio (total debt / total equity), equity multiplier (total assets / total equity), or the debt ratio (total debt / total assets). Please check the
breakdown between Hilton Worldwide's total debt and its cash.
Hilton Worldwide Gross Profit
Hilton Worldwide Gross Profit growth is one of the most critical measures in evaluating the company. The Gross Profit growth rate is calculated simply by comparing Hilton Worldwide previous period's values with its current period's values. Each time period you're measuring should be of equal lengths the increase or decrease, in a company's Gross Profit between two periods. Here we show Hilton Worldwide Gross Profit growth over the last 10 years. Please check Hilton Worldwide's
gross profit and other
fundamental indicators for more details.
An Additional Perspective On Hilton Worldwide Holdings
Hilton Worldwide Holdings currently demonstrates below-verage downside deviation. It has Information Ratio of 0.02 and Jensen Alpha of -0.06. However, we do advice investors to further question Hilton Worldwide Holdings expected returns to ensure all indicators are consistent with the current outlook about its relatively low value at risk.
Returns Breakdown
| Return on Investment | 14.61 |
| Return on Assets | 0.0582 |
| Return on Equity | (5.25) |
| Return Capital | 0.17 |
| Return on Sales | 0.19 |
Another small drop for Hilton Worldwide
Hilton Worldwide newest mean deviation boosts over 1.54. As of the 17th of February 2021, Hilton Worldwide retains the Downside Deviation of 2.03,
market risk adjusted performance of 0.0784, and Risk Adjusted Performance of 0.0627. Hilton Worldwide
technical analysis makes it possible for you to employ
historical prices and volume momentum with the intention to determine a pattern that calculates the direction of the firm's future prices. Simply put, you can use this information to find out if the firm will indeed mirror its model of historical price patterns, or the prices will eventually revert. We were able to break down and interpolate data for nineteen
technical drivers for Hilton Worldwide Hol, which can be compared to its competitors. Please check out
Hilton Worldwide Hol coefficient of variation,
treynor ratio, as well as the
relationship between the Treynor Ratio and
semi variance to decide if Hilton Worldwide is priced fairly, providing market reflects its last-minute price of 112.14 per share. Given that Hilton Worldwide Holdings has
jensen alpha of
(0.06), we strongly advise you to confirm Hilton Worldwide Hol's regular market performance to make sure the company can sustain itself at a future point.
Our Final Take On Hilton Worldwide
Whereas some firms in the lodging industry are either recovering or due for a correction, Hilton may not be as strong as the others in terms of longer-term growth potentials. To sum up, as of the 17th of February 2021, our final 30 days Buy-Hold-Sell recommendation on the firm is
Buy. However, we believe Hilton Worldwide is
overvalued with
below average odds of financial turmoil for the next two years.
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Rifka Kats is a Member of Macroaxis Editorial Board. Rifka writes about retail product and service companies from the perspective of a regular consumer and sophisticated investor at the same time. She is passionate about corporate ethics and equality in the workforce.
View Profile This story should be regarded as informational only and should not be considered a solicitation to sell or buy any financial products. Macroaxis does not express any opinion as to the present or future value of any investments referred to in this post. This post may not be reproduced without the consent of Macroaxis LLC. Macroaxis LLC and Rifka Kats do not own shares of Hilton Worldwide Holdings. Please refer to our
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