Why Philip Morris’s Valuation Multiple Fell: Weak 1Q17 Earnings
Valuation multiples help investors make investment decisions. They’re driven by investors’ willingness to pay, perceived growth, risks, and uncertainties.
As of April 24, 2017, Philip Morris (PM) was trading at $112.39. The stock price might have factored in the various estimates we discussed in the earlier parts of this series.
In 1Q17, Philip Morris International (PM) posted adjusted EPS (earnings per share) of $0.98 against analysts’ estimate of $1.03.
What Analysts Recommend for Hilton ahead of 1Q17 Results
Hilton’s consensus 12-month target price is $64.6, which indicates a 12.6% return potential over its April 21 closing price of $58.
Hilton (HLT) currently trades at a forward EV-to-EBITDA multiple of 17.6x.
The hotel sector is capital intensive, and companies in the industry normally carry high debt.