How Does This Global Hotel Operator Work?
Marriott International runs a global hotel business built around branded lodging. It operates and franchises hotels and also earns fees tied to managing properties for owners. The company’s model centers on expanding its brand footprint while keeping day-to-day property operations largely in the hands of owners and franchisees. At today’s scale, it carries a market value of about USD 93.5 billion.
Are Margins And Cash Flow Holding Steady?
FundamentalsFor 2025, reported in USD, revenue reached about USD 26.2 billion, with EBIT at roughly USD 4.1 billion and net income of about USD 2.6 billion. Revenue rose 4.3% year over year, alongside a trailing operating margin of 15.81% and a net profit margin of 9.93%.
Cash generation, based on EBIT after tax plus depreciation and amortization and adjusted for capital spending, was about USD 3.9 billion, with depreciation and amortization at USD 599 million. Total debt stood at about USD 2.4 billion. Return on equity was 309.12%.
Is The Market Overpaying For Growth?
DCF / MultiplesAt USD 352.93, the stock trades near the low end of the DCF range and well below the stronger-outcome end. Headline pricing also embeds rich expectations, with a 35.53x trailing P/E and 24.85x EV/EBITDA alongside a 3.53x price-to-sales ratio.
Valuation Hinges On Sustained Growth
TakeawayThe price assumes the business keeps compounding through reinvestment. Growth and margins need to hold up together. Cash generation has to stay durable as the footprint expands. If growth cools, the multiple becomes the main risk. If reinvestment returns fade, valuation support can thin quickly.