Munger Mode rating: 3 out of 5 — Hold. Our own rating from the research report below, on business quality first: moat durability and management, with price separating the top three.
The verdict in one paragraph: Hilton is one of the finest business models in the S&P 500 — a global royalty on travel that collects fees on $1.4 million hotel rooms it doesn't own, growing its room count 6% a year with other people's capital, run by a CEO who has compounded value intelligently for nearly two decades. This is a genuinely wonderful business, and we don't say that often. But at roughly 37 times this year's adjusted earnings and 21 times EV/EBITDA for a business that will grow earnings per share perhaps 12–14% annually and remains cyclical underneath its fee structure, the price is comfortably ahead of intrinsic value. We'd be delighted owners at the right price. Today is not that price. A wonderful business at a premium is a hold, not a buy. Charlie always said we should be able to explain a business to a reasonably intelligent teenager. Hilton passes easily.
Recent filings analysed: 8-K (2026-07-28), 10-Q (2026-07-28), 8-K (2026-05-18), 8-K (2026-05-11).
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