Host Hotels & Resorts (Host Hotels & Resorts) Intrinsic Value: DCF (Dividends Based) : $26.89 (As of Apr. 27, 2024)

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Host Hotels & Resorts Intrinsic Value: DCF (Dividends Based) Chart

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Competitive Comparison of Host Hotels & Resorts's Intrinsic Value: DCF (Dividends Based)

For the REIT - Hotel & Motel subindustry, Host Hotels & Resorts's Price-to-DCF (Dividends Based), along with its competitors' market caps and Price-to-DCF (Dividends Based) data, can be viewed below:

* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.

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Host Hotels & Resorts's Price-to-DCF (Dividends Based) Distribution in the REITs Industry

For the REITs industry and Real Estate sector, Host Hotels & Resorts's Price-to-DCF (Dividends Based) distribution charts can be found below:

* The bar in red indicates where Host Hotels & Resorts's Price-to-DCF (Dividends Based) falls into.

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Host Hotels & Resorts Intrinsic Value: DCF (Dividends Based) Calculation

This is the intrinsic value calculated from the Discounted Dividend Model with default parameters. The calculation method is the same as Discounted Cash Flow model except adjusted dividend are used in the calculation instead of free cash flow. This is the default method of calculation with GuruFocus DCF calculator.

Usually a two-stage model is used in calculating the intrinsic value with discounted cash flow model. The first stage is called growth stage; the second is called the terminal stage. In the growth stage the company grows at a faster rate. Because it cannot grow at that rate forever, a lower rate is used for the terminal stage.

GuruFocus DDM calculator is a two-stage model. The default values are defined as:

1. Discount Rate: d = 11%
A reasonable discount rate assumption should be at least the long term average return of the stock market, which can be estimated from risk free rate plus risk premium of stock market. GuruFocus uses 10-Year Treasury Constant Maturity Rate as the risk-free rate and rounded up to the nearest integer. It is updated daily. The current risk-free rate is 4.66%. Please go to Economic Indicators page for more information. Please note that we use the 10-Year Treasury Constant Maturity Rate of the country/region where the company is headquartered. If the data for that country/region is not available, then we will use the 10-Year Treasury Constant Maturity Rate of the United States as default. Then we added a risk premium of 6% to get the estimated discount rate. Some investors use their expected rate of return, which is also reasonable. A typical discount rate can be anywhere between 6% - 20%.

2. Dividend Growth Rate in the growth stage: g1 = 20%
The Growth Rate in the growth stage is initially set as the default 10-Year Dividend Growth Rate. In cases where the 10-year growth rate is unavailable, it defaults to using the 5-Year Dividend Growth Rate. If both the 10-year and 5-year growth rates are unavailable, the system defaults to the 3-Year Dividend Growth Rate.
However, it's important to note that there is a growth rate range. If the calculated growth rate exceeds 20%, it will be capped at 20%. Conversely, if the calculated growth rate falls below 5%, it will be adjusted to 5% to maintain a reasonable range.
=> Host Hotels & Resorts's average Dividend Growth Rate in the past 3 years was 48.10%, which is no less than 20%. GuruFocus defaults => Growth Rate: 20%

3. Years of Growth Stage: y1 = 10

4. Terminal Growth Rate: g2 = 4%

5. Dividends per Share: adjusted dividends per share = $0.8604.
GuruFocus uses adjusted dividends per share by default to ensure that the valuation reflects the total value of the company, as the actual dividend is only a portion of the total value.

All of the default settings can be changed in the DCF calculator and the results are calculated automatically.

Host Hotels & Resorts's Intrinsic Value: DCF (Dividends Based) for today is calculated as:

set x = (1+g1)/(1+d) = (1+0.2)/(1+0.11) = 1.0810810810811
and y = (1+g2)/(1+d) = (1+0.04)/(1+0.11) = 0.93693693693694

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

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Host Hotels & Resorts  (NAS:HST) Intrinsic Value: DCF (Dividends Based) Explanation

Unlike valuation methods such as Net Current Asset Value, Tangible Book per Share, Graham Number, Median PS Value etc, discounted Dividends model evaluates the companies based on their power of future dividend distribution instead of their assets.

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Be Aware

What you need to know about Discounted Dividends model:

1. The Discounted Dividends model evaluates a company based on its future dividends distribution power
2. Dividend growth is taken into account; therefore a company with a higher dividend growth rate is worth more if everything else is the same.
3. Since we are projecting future growth, it is assumed that the company will grow at the same rate as it did during the past 10 years. Therefore this model works better for the companies with consistently steady dividends distributed.
4. The Discounted Dividends model works poorly for inconsistent dividends distributor like high growth companies.
5. Your expected return from the investment is a reasonable discount rate assumption.
6. A larger margin of safety should be required for companies with less dividends distributed.

You can screen for stocks that trade below their Intrinsic Value: DCF (FCF Based) and Intrinsic Value: DCF (Earnings Based) and Intrinsic Value: DCF (Dividends Based) with the GuruFocus All-in-One Screener. Companies with a high Predictability Rank that trade at a discount to their Intrinsic Value: DCF (FCF Based) and Intrinsic Value: DCF (Earnings Based) can be found in the screen of Undervalued Predictable Companies.

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Host Hotels & Resorts Intrinsic Value: DCF (Dividends Based) Related Terms

Thank you for viewing the detailed overview of Host Hotels & Resorts's Intrinsic Value: DCF (Dividends Based) provided by GuruFocus.com. Please click on the following links to see related term pages.

Predictability Rank Intrinsic Value: Projected FCF Intrinsic Value: DCF (FCF Based) Intrinsic Value: DCF (Earnings Based) Margin of Safety % (DCF Dividends Based) Margin of Safety % (DCF FCF Based) Margin of Safety % (DCF Earnings Based) 5-Year Dividend Growth Rate Dividends per Share

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Host Hotels & Resorts (Host Hotels & Resorts) Business Description

Executives

Sourav Ghosh	officer: SVP, Business Intelligence, other: SVP, Business Intelligence	6903 ROCKLEDGE DRIVE, 15TH FLOOR, BETHESDA MD 20817
Nathan S Tyrrell	officer: VP, Corp Finance & Asst Treas.	6903 ROCKLEDGE DRIVE, SUITE 1500, BETHESDA MD 20817
James F Risoleo	officer: Executive Vice President
Mary Baglivo	director	C/O SAATCHI & SAATCHI, 17 HUDSON STREET, NEW YORK NY 10014
Walter C Rakowich	director	14100 E 35TH PL, AURORA CO 80011
Mari Sifo	officer: Executive Vice President and	4747 BETHESDA AVENUE, SUITE 1300, BETHESDA MD 20814
Diana Laing	director	THE MACERICH COMPANY, 401 WILSHIRE BVLD., STE. 700, SANTA MONICA CA 90401
Herman E Bulls	director	JONES LANG LASALLE, 1801 K STREET NW SUITE 1000, WASHINGTON DC 20006
Joanne G. Hamilton	officer: Executive Vice President	6903 ROCKLEDGE DRIVE, SUITE 1500, BETHESDA MD 20817
Joseph Ottinger	officer: See Remarks	4747 BETHESDA AVENUE, 13TH FLOOR, BETHESDA MD 20814
Brian G Macnamara	officer: Sr. Vice President, Controller	6903 ROCKLEDGE DRIVE, 15TH FLOOR, BETHESDA MD 20817
Bair Sheila Colleen	director	6903 ROCKLEDGE DRIVE, SUITE 1500, BETHESDA MD 20817
Richard E Marriott	director, officer: Chairman of the Board	10400 FERNWOOD ROAD, BETHESDA MD 20817
Julie P Aslaksen	officer: EVP, General Counsel & Sec.	4747 BETHESDA AVENUE, SUITE 1300, BETHESDA MD 20814
Michael E Lentz	officer: Mng. Dir. - Global Development, other: Mng. Dir. - Global Development	6903 ROCKLEDGE DRIVE, SUITE 1500, BETHESDA MD 20817