Publicação
Equity research - Hyatt Hotels Corporation
| Resumo: | The Equity Research Report that ensues contains a valuation on Hyatt Hotels Corporation (“HYATT”) and follows the format proposed by the CFA Institute. Only public information available on August 19th, 2021, was considered; therefore, any information made available after was not reflected. HYATT was chosen due to its focus on high-end segments, which would be interesting to analyse in the post-pandemic context. HYATT is a worldwide hospitality company that operates in all five continents with a portfolio that currently comprises more than 980 hotels. A leader in its industry, it displayed values of Total Revenues of $2.1Bn, Total Assets of $9.129Bn and a market capitalization of $7.061Bn in 2020YE. HYATT has a HOLD recommendation, presenting a 2022YE PT of $77.07/share, which translates into an 11.12% upside potential compared to its August 19th, 2021 closing price of $69.36/share, with high risk. This was computed through the WACC method, but other methods were performed to complement the analysis, namely the Adjusted Present Value (APV), the Flow to Equity, the Dividend-Discount Model (DDM) and the Relative Valuation through Peer’s multiples. The company’s shares are undervalued at present mainly due to the challenges posed by the COVID-19 pandemic on the world economy, which led to the rise of uncertainty and pessimistic expectations, causing downward pressure on both the demand and supply sides of the hotel industry. In addition, a sensitivity analysis was performed on WACC, long-term sustainable growth rate, RevPAR and number of rooms, which were considered risks to the PT. |
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| Autores principais: | Rodrigues, Cláudia Sofia Ferreira |
| Assunto: | Equity Research Valuation Hyatt Avaliação de Empresas |
| Ano: | 2021 |
| País: | Portugal |
| Tipo de documento: | dissertação de mestrado |
| Tipo de acesso: | acesso aberto |
| Instituição associada: | Universidade de Lisboa |
| Idioma: | inglês |
| Origem: | Repositório da Universidade de Lisboa |
| Resumo: | The Equity Research Report that ensues contains a valuation on Hyatt Hotels Corporation (“HYATT”) and follows the format proposed by the CFA Institute. Only public information available on August 19th, 2021, was considered; therefore, any information made available after was not reflected. HYATT was chosen due to its focus on high-end segments, which would be interesting to analyse in the post-pandemic context. HYATT is a worldwide hospitality company that operates in all five continents with a portfolio that currently comprises more than 980 hotels. A leader in its industry, it displayed values of Total Revenues of $2.1Bn, Total Assets of $9.129Bn and a market capitalization of $7.061Bn in 2020YE. HYATT has a HOLD recommendation, presenting a 2022YE PT of $77.07/share, which translates into an 11.12% upside potential compared to its August 19th, 2021 closing price of $69.36/share, with high risk. This was computed through the WACC method, but other methods were performed to complement the analysis, namely the Adjusted Present Value (APV), the Flow to Equity, the Dividend-Discount Model (DDM) and the Relative Valuation through Peer’s multiples. The company’s shares are undervalued at present mainly due to the challenges posed by the COVID-19 pandemic on the world economy, which led to the rise of uncertainty and pessimistic expectations, causing downward pressure on both the demand and supply sides of the hotel industry. In addition, a sensitivity analysis was performed on WACC, long-term sustainable growth rate, RevPAR and number of rooms, which were considered risks to the PT. |
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