Question: The industry average EBTIDA and EBIT multiples from 2016 are 14.92 and 20.40, respectively. Using these figures to find the enterprise value of Hilton's post

The industry average EBTIDA and EBIT multiples from 2016 are 14.92 and 20.40, respectively. Using these figures to find the enterprise value of Hilton's post divestiture business units show: Company Name EV from EBITDA EV from EBIT Hilton Worldwide 18,083.04 19,074.00 Park Hotel & Resorts 11,234.76 9,241.20 Hilton Grand Vacations 5,624.84 7,201.20 Hilton Worldwide retains a significant amount of its enterprise value post divestiture despite spinning off large portions of its business. Looking at enterprise value based on revenue multiple, 5.38, and earnings multiple, 26.2, for Hilton's business units show: Company Name EV from Revenue EV from Earnings Hilton Worldwide 16,478.94 5,028.48 (@ 6.3% margin) Park Hotel & Resorts 14,778.86 3,641.80 Hilton Grand Vacations 7,838.66 4,401.60Hilton Worldwide 2013 2014 2015 2016 Revenue 6,330.0 3,121.0 3,122.0 3,063.0 Growth over prior year NMF D.096 -1.9% Gross Profit 2,453.0 1,535.0 708.0 1,768.0 Margin 9% 38.89% 492.09% 547.0% 57.7% EBITDA 1,653.0 1,257.0 1,035.0 1,212.0 Margin 96 26.19% 40.3% 332.095 396.095 EBIT 1,112.0 703.0 750.0 935.0 Margin 9% 17.6%% 22.595 24.09% 30.5% Earnings from Cont. Ops. 460.0 179.0 386.0 -8.0 Margin 7.39% 5.79% 12.4% -0.3%% Net Income 415.0 376.0 404.0 348.0 Margin 6.6% 21.6% 45.06 114.0% Total Debt 6,629.0 Equity 1,596.0 Total Capital 8,225.0 Park Hotels & Resorts 2014 2015 2016 Revenue 2,529.0 2,710.0 2,747.0 Growth over prior year 7.895 7.29% 1.46 Gross Profit 820.0 907.0 899.0 Margin 96 32.4% 33.5% 32.7%% EBITDA 704.0 778.0 753.0 Margin 96 27.86 28.79% 27.49% EBIT 456.0 491.0 453.0 Margin $ 18.0% 18.16 16.2% Earnings from Cont. Ops. 181.0 299.0 139.0 Margin 95 7.295 11.0% 5.1% FFO 424.0 450.0 476.0 Net Income 176.0 292.0 133.0 Margin % 7.09% 10.8% 4.8% Total Debt 4,114.0 3,222.0 Equity 2,860.0 3,823.0 Total Capital 6,974.0 7,045.0 Hilton Grand Vacations 2014 2015 2016 Revenue 1,210.0 1,362.0 1,457.0 Growth over prior year 7.696 12.8%6 6.796 Gross Profit 850.0 841.0 1,044.0 Margin 9% 70.296 68.9% 71.79% EBITDA 331.0 343.0 377.0 Margin 96 27.49% 25.16 25.9% EBIT 313.0 321.0 353.0 Margin 25.96 23.5% 24.26 Earnings from Cont. Ops. 167.0 174.0 168.0 Margin $6 13.8%% 12.796 11.56 Net Income 167.0 174.0 168.0 Margin %% 13.8% 12.7% 11.5% Total Debt 1,065.0 Equity 518.0 Total Capital 1,583.0 10,916.0 5,937.0

Step by Step Solution

There are 3 Steps involved in it

1 Expert Approved Answer

Step: 1 Unlock blur-text-image

Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock

Step: 3 Unlock

Students Have Also Explored These Related Finance Questions!

The Final Project allows you to demonstrate your knowledge and understanding of basic financial statements, financial ratio analysis, trend and common size analysis, market valuation of bonds and...

It is Snapchat A which is found in your course pack. You are to turn in an excel a) excel spreadsheet with formulas for calculations. The spreadsheet should show cash flow, WACC calculation, firm...

Hi Ruchi, I need help with the attached assignment. It's due in about a week. Thanks 1) The paper should be written in APA style Research Paper format. This is the link that explains the research...

Write a report for MYOB Group Limited, it should including: Budgets and Performance Measures 1. Look for your company's mission statement or statement that sets out the overall philosophy and...

In January 2012, Ellen Kullman, CEO and chairman of DuPont, was reviewing an internal report on the company's Performance Coatings division. A month earlier, she had dismissed rumors that the...

Hi Can you assist with the attached assignment? Thanks Bayerische Motoren Werke Aktiengesellschaft (DB:BMW) > Financials > Key Stats In Millions of the trading currency, except per share items....

All I need is the Terminal Value of the company reflected in the attached spread sheet, I have done everything else. Please show and explain to me how you did it under the "DCF, FCF, & TV" tab of the...

Topic: Valuation and Mergers & acquisitions I need powerpoint presentation with 20 slides and each slideshave to be speakers note minimum 200 words. could you please follow below quistions that I...

Prepare the financial analysis to support your decision between bankruptcy,voluntary reorganization,and Chapter11reorganization.It must be complete and prepared in a professional level,with the...

Please see the snap photo below for further instructions. thank you 1. Read the Electrolux and GE Applianceh 2. \"the Excel spreadsheet template prov1 e posted N 3 Answer the following questions....

What is the difference between a desirable and an undesirable functional dependency? Describe the nature of the problems caused by undesirable functional dependencies. What prevents us from simply...

A packet arrives at a router with probability p in an independent and identically distributed fashion. That is, at most one packet arrives at each instant independently, and probability of a packet...

3 . Corporations used to form conglomerates ( composite companies formed through the acquisition of smaller companies in often vastly different businesses ) . Their justification was often that...

(Choose the right sentence) Say that call price is at 100% of the face value, the yield to call is a more conservative yield measurethan the yield to maturitywhenever A. price of a callable bond is...