Park Hotels & Resorts Inc.

Real EstateREIT - Hotel & MotelNYSE

$11.03

Market Cap: $2.22B

Park Hotels & Resorts Inc. (PK) Valuation Summary

Updated Apr 6, 2026 22:28

Model	Range	Fair Value	Upside
▸ Discounted Cash Flow
Growth Exit 5Y	$8.93 – $139.25	$28.27	+172.1%
Growth Exit 10Y	$22.52 – $220.64	$51.98	+400.3%
EBITDA Exit 5Y	$8.01 – $41.75	$23.45	+125.7%
EBITDA Exit 10Y	$18.12 – $68.24	$39.40	+279.2%
▸ Trading Multiples
P/E	—	N/A	—
EV/EBITDA	—	N/A	—
EV/Revenue	$14.29 – $88.88	$33.03	+217.9%
▸ PEG
PEG Fair Value	—	N/A	—
▸ Earnings Power Value
Earnings Power Value	$2.04 – $14.73	$6.98	-32.8%
▸ Dividend Discount
Dividend Discount	—	N/A	—

Valuation History

DCF Analysis

Fair Value

$28.27

Market Price

$11.03

Upside / Downside

+156.3%

Verdict

Undervalued

Using an unlevered Free Cash Flow to Firm (FCFF) model, we project Park Hotels & Resorts Inc.'s cash flows over 5 years with line-by-line expense modeling. Revenue is projected revenue growing from -0.7% to 16.9% annually, with expenses (COGS, SG&A, R&D) held at historical ratios. Depreciation is computed from a vintage matrix based on a 5-year useful life. Working capital is modeled using historical turnover days (DSO 63, DPO 45, DIO 60). At a 6.8% WACC with mid-year discounting, the terminal value (84% of enterprise value) is derived from the Gordon Growth Model on Year 6 FCFF at a 2.5% perpetual rate. After subtracting net debt, the equity value implies a fair price of $28.27 per share, suggesting PK is undervalued by 156.3% at the current price of $11.03.

FCFF Present Value Calculation

WACC

6.76%

3% – 20%

Terminal Growth

2.50%

0% – 6%

Forecast Period

5 Yrs

+ Terminal Year

Adjust parameters to explore scenarios. Changes are for exploration only and do not affect saved valuations.

Currency: USD Millions

	2026	2027	2028	2029	2030	Terminal
Profit Before Tax	144	148	151	177	207	212
(−) Net Interest	299	308	314	367	429	440
(+) D&A	206	237	247	234	240	246
EBITDA	648	694	713	778	876	898

(−) Tax	0	0	0	0	0	0
(−) CapEx	210	217	221	258	302	309
(−) ΔWC	402	17	11	92	107	110
Free Cash Flow (FCFF)	37	460	481	428	467	479

Terminal Value						11,236
WACC / Discount Rate	6.8%
Long-term Growth Rate	2.5%

Timing of FCF (mid year)	0.5	1.5	2.5	3.5	4.5	5
Present Value of FCF	35	417	408	340	348	8,101

Enterprise Value	9,651
Projection Period	1,549	16.1%
Terminal Value	8,101	83.9%

(−) Current Net Debt	4,025

Equity Value	5,626
(/) Outstanding Shares	199

Fair Price	$28.27

Sensitivity Analysis

WACC \ Terminal Growth Rate	1.5%	2.0%	2.5%	3.0%	3.5%
4.8%	$46	$57	$72	$96	$139
5.8%	$30	$36	$44	$54	$68
6.8%	$21	$24	$28	$34	$41
7.8%	$14	$16	$19	$22	$26
8.8%	$9	$11	$12	$15	$17

Current price: $11.03. Green = undervalued, Red = overvalued.

Fair Value

$51.98

Market Price

$11.03

Upside / Downside

+371.3%

Verdict

Undervalued

Using an unlevered Free Cash Flow to Firm (FCFF) model, we project Park Hotels & Resorts Inc.'s cash flows over 10 years with analyst estimates for the first 3–5 years, fading toward long-term GDP growth for the remaining years with line-by-line expense modeling. Revenue is projected revenue growing from -0.7% to 5.3% annually, with expenses (COGS, SG&A, R&D) held at historical ratios. Depreciation is computed from a vintage matrix based on a 5-year useful life. Working capital is modeled using historical turnover days (DSO 63, DPO 45, DIO 60). At a 6.8% WACC with mid-year discounting, the terminal value (75% of enterprise value) is derived from the Gordon Growth Model on Year 11 FCFF at a 2.5% perpetual rate. After subtracting net debt, the equity value implies a fair price of $51.98 per share, suggesting PK is undervalued by 371.3% at the current price of $11.03.

FCFF Present Value Calculation

WACC

6.76%

3% – 20%

Terminal Growth

2.50%

0% – 6%

Forecast Period

5 Yrs

+ Terminal Year

Adjust parameters to explore scenarios. Changes are for exploration only and do not affect saved valuations.

Currency: USD Millions

	2026	2027	2028	2029	2030	2031	2032	2033	2034	2035	Terminal
Profit Before Tax	144	148	151	177	207	237	266	292	314	331	339
(−) Net Interest	299	308	314	367	429	492	552	607	653	688	705
(+) D&A	206	237	247	234	240	242	269	303	344	384	394
EBITDA	648	694	713	778	876	970	1,087	1,202	1,312	1,403	1,439

(−) Tax	0	0	0	0	0	0	0	0	0	0	0
(−) CapEx	210	217	221	258	302	346	388	427	459	484	496
(−) ΔWC	402	17	11	92	107	108	104	95	80	60	62
Free Cash Flow (FCFF)	37	460	481	428	467	516	594	680	772	860	881

Terminal Value											20,680
WACC / Discount Rate	6.8%
Long-term Growth Rate	2.5%

Timing of FCF (mid year)	0.5	1.5	2.5	3.5	4.5	5.5	6.5	7.5	8.5	9.5	5
Present Value of FCF	35	417	408	340	348	360	388	416	443	462	10,751

Enterprise Value	14,370
Projection Period	3,619	25.2%
Terminal Value	10,751	74.8%

(−) Current Net Debt	4,025

Equity Value	10,345
(/) Outstanding Shares	199

Fair Price	$51.98

Sensitivity Analysis

WACC \ Terminal Growth Rate	1.5%	2.0%	2.5%	3.0%	3.5%
4.8%	$85	$101	$123	$158	$221
5.8%	$58	$66	$77	$91	$111
6.8%	$42	$46	$52	$59	$69
7.8%	$31	$33	$37	$41	$46
8.8%	$23	$24	$27	$29	$33

Current price: $11.03. Green = undervalued, Red = overvalued.

Fair Value

$23.46

Market Price

$11.03

Upside / Downside

+112.7%

Verdict

Undervalued

Using an unlevered Free Cash Flow to Firm (FCFF) model, we project Park Hotels & Resorts Inc.'s cash flows over 5 years with line-by-line expense modeling. Revenue is projected revenue growing from -0.7% to 16.9% annually, with expenses (COGS, SG&A, R&D) held at historical ratios. Depreciation is computed from a vintage matrix based on a 5-year useful life. Working capital is modeled using historical turnover days (DSO 63, DPO 45, DIO 60). At a 6.8% WACC with mid-year discounting, the terminal value (82% of enterprise value) is derived by applying the industry peer median EV/EBITDA multiple of 11.0x to Year 6 EBITDA. After subtracting net debt, the equity value implies a fair price of $23.45 per share, suggesting PK is undervalued by 112.6% at the current price of $11.03.

FCFF Present Value Calculation

WACC

6.76%

3% – 20%

EV/EBITDA Exit Multiple

11.03x

1x – 40x

Forecast Period

5 Yrs

+ Terminal Year

Adjust parameters to explore scenarios. Changes are for exploration only and do not affect saved valuations.

Currency: USD Millions

	2026	2027	2028	2029	2030	Terminal
Profit Before Tax	144	148	151	177	207	212
(−) Net Interest	299	308	314	367	429	440
(+) D&A	206	237	247	234	240	246
EBITDA	648	694	713	778	876	898

(−) Tax	0	0	0	0	0	—
(−) CapEx	210	217	221	258	302	—
(−) ΔWC	402	17	11	92	107	—
Free Cash Flow (FCF)	37	460	481	428	467	—

Peers' EBITDA Multiple						11.0x
Terminal Value						9,908
WACC / Discount Rate	6.76%

Timing of FCF (mid year)	0.5	1.5	2.5	3.5	4.5	5
Present Value of FCF	35	417	408	340	348	7,144

Enterprise Value	8,694
Projection Period	1,549	17.8%
Terminal Value	7,144	82.2%

(−) Current Net Debt	4,025
Equity Value	4,669
(÷) Outstanding Shares	199M
Fair Price	$23	+112.7%

Sensitivity Analysis

WACC \ EV/EBITDA Exit Multiple	7.0x	9.0x	11.0x	13.0x	15.0x
4.8%	$13	$20	$27	$35	$42
5.8%	$12	$19	$25	$32	$39
6.8%	$10	$17	$23	$30	$36
7.8%	$9	$15	$22	$28	$34
8.8%	$8	$14	$20	$26	$32

Current price: $11.03. Green = undervalued, Red = overvalued.

Based on default parameters

Fair Value

$39.41

Market Price

$11.03

Upside / Downside

+257.3%

Verdict

Undervalued

Using an unlevered Free Cash Flow to Firm (FCFF) model, we project Park Hotels & Resorts Inc.'s cash flows over 10 years with analyst estimates for the first 3–5 years, fading toward long-term GDP growth for the remaining years with line-by-line expense modeling. Revenue is projected revenue growing from -0.7% to 5.3% annually, with expenses (COGS, SG&A, R&D) held at historical ratios. Depreciation is computed from a vintage matrix based on a 5-year useful life. Working capital is modeled using historical turnover days (DSO 63, DPO 45, DIO 60). At a 6.8% WACC with mid-year discounting, the terminal value (70% of enterprise value) is derived by applying the industry peer median EV/EBITDA multiple of 11.0x to Year 11 EBITDA. After subtracting net debt, the equity value implies a fair price of $39.40 per share, suggesting PK is undervalued by 257.2% at the current price of $11.03.

FCFF Present Value Calculation

WACC

6.76%

3% – 20%

EV/EBITDA Exit Multiple

11.03x

1x – 40x

Forecast Period

5 Yrs

+ Terminal Year

Adjust parameters to explore scenarios. Changes are for exploration only and do not affect saved valuations.

Currency: USD Millions

	2026	2027	2028	2029	2030	2031	2032	2033	2034	2035	Terminal
Profit Before Tax	144	148	151	177	207	237	266	292	314	331	339
(−) Net Interest	299	308	314	367	429	492	552	607	653	688	705
(+) D&A	206	237	247	234	240	242	269	303	344	384	394
EBITDA	648	694	713	778	876	970	1,087	1,202	1,312	1,403	1,439

(−) Tax	0	0	0	0	0	0	0	0	0	0	—
(−) CapEx	210	217	221	258	302	346	388	427	459	484	—
(−) ΔWC	402	17	11	92	107	108	104	95	80	60	—
Free Cash Flow (FCF)	37	460	481	428	467	516	594	680	772	860	—

Peers' EBITDA Multiple											11.0x
Terminal Value											15,867
WACC / Discount Rate	6.76%

Timing of FCF (mid year)	0.5	1.5	2.5	3.5	4.5	5.5	6.5	7.5	8.5	9.5	5
Present Value of FCF	35	417	408	340	348	360	388	416	443	462	8,249

Enterprise Value	11,868
Projection Period	3,619	30.5%
Terminal Value	8,249	69.5%

(−) Current Net Debt	4,025
Equity Value	7,843
(÷) Outstanding Shares	199M
Fair Price	$39	+257.3%

Sensitivity Analysis

WACC \ EV/EBITDA Exit Multiple	7.0x	9.0x	11.0x	13.0x	15.0x
4.8%	$32	$41	$50	$59	$68
5.8%	$28	$36	$44	$53	$61
6.8%	$24	$32	$39	$47	$54
7.8%	$21	$28	$35	$42	$48
8.8%	$18	$24	$31	$37	$43

Current price: $11.03. Green = undervalued, Red = overvalued.

Based on default parameters

Trading Multiples

Fair Value

$33.03

Market Price

$11.03

Upside / Downside

+199.4%

Verdict

Undervalued

Using the industry peer median EV/Revenue multiple (trailing + forward), Park Hotels & Resorts Inc. (PK) has a fair value of $33.03 based on 9 comparable companies in the REIT - Hotel & Motel industry.

EV/Revenue Valuation — REIT - Hotel & Motel

USD in millions except Fair Price. Subject company highlighted.

	Mkt Cap ($M)	Trailing EV/Revenue	Forward EV/Revenue
Park Hotels & Resorts Inc.PK	2,195	2.4x	2.4x
National Storage Affiliates TrustNSA	3,030	8.5x	8.7x
Apple Hospitality REIT, Inc.APLE	2,742	3.2x	3.1x
InvenTrust Properties Corp.IVT	2,388	10.6x	10.7x
DiamondRock Hospitality CompanyDRH	1,911	2.7x	2.7x
Douglas Emmett, Inc.DEI	1,577	6.8x	6.8x
Arbor Realty Trust, Inc.ABR	1,448	9.9x	17.1x
Pebblebrook Hotel TrustPEB	1,446	2.5x	2.6x
Empire State Realty Trust, Inc.ESRT	860	4.1x	4.2x
Summit Hotel Properties, Inc.INN	473	2.6x	2.5x
Industry Median		4.1x	4.2x
(*) Revenue		2,541	2,585
= Enterprise Value		10,361	10,834
(-) Net Debt		4,025	4,025
Equity Value		6,336	6,809
(/) Outstanding shares		199	199
Fair Price		$32	$34

Selected Fair Value (avg of trailing + forward)

$33.03

+199.4%

Earnings Power Value

Fair Value

$6.98

Market Price

$11.03

Upside / Downside

-36.7%

Verdict

Overvalued

Using the Earnings Power Value framework with a WACC of 6.8% and normalized earnings of $366.0M, the company has a fair value of $6.98 per share. The EPV range is $2.04 – $14.73 based on WACC sensitivity (5.3% – 8.3%).

Currency: USD Millions

	Low	Selected	High
Normalized Earnings	366	366	366
(/) WACC	8.3%	6.8%	5.3%
Enterprise Value	4,430	5,413	6,957
(-) Net debt	4,025	4,025	4,025
Equity Value	405	1,388	2,932
(/) Outstanding shares	199	199	199
Fair Price	$2.04	$6.98	$14.73

Disclaimer: Sweet Value Lab provides estimated intrinsic values for informational purposes only. This is not financial advice. All models rely on assumptions that may not reflect future performance. Always do your own research before making investment decisions.