Marriott International (MAR)
Consumer · NASDAQ · US
Fundamentals
Valuation and ratings
Marriott International trades at $371.14, which is 59% above the $150.44 our discounted cash flow model puts on the business. On that measure it screens as expensive, which is not the same as saying it will fall.
Our moat model scores it 72 out of 100, which is a wide moat. A moat is a structural reason competitors cannot take the profits away, and it matters more to a long holding period than any single quarter's numbers do.
It changes hands at 39.4 times earnings. Be careful reading that in isolation: for a cyclical business a low P/E arrives at the top of the cycle, when profits are peaking and about to fall, which is exactly when the shares look cheapest and are not.
About Marriott International
Marriott International, Inc. engages in the operation, franchising, and licensing of hotel, residential, timeshare, and other lodging properties in the United States, Canada, Europe, the Middle East, Africa, Greater China, the Asia-Pacific, and internationally. The company operates properties under the JW Marriott, The Ritz-Carlton, The Luxury Collection, W Hotels, St. Regis, EDITION, Bvlgari, Marriott Hotels, Sheraton, Westin, Autograph Collection, Renaissance Hotels, Le Méridien, Delta Hotels by Marriott, MGM Collection with Marriott Bonvoy, Tribute Portfolio, Gaylord Hotels, Design Hotels, Marriott Executive Apartments, Apartments by Marriott Bonvoy, Courtyard by Marriott, Fairfield by Marriott, Residence Inn by Marriott, SpringHill Suites by Marriott, Four Points by Sheraton, TownePlace Suites by Marriott, Aloft Hotels, AC Hotels by Marriott, Moxy Hotels, Element Hotels, Protea Hotels by Marriott, citizenM, City Express by Marriott, and Four Points Flex by Sheraton brands. It also operates residences, timeshares, and yachts. The company was formerly known as New Marriott MI, Inc. and changed its name to Marriott International, Inc. in May 1998. Marriott International, Inc. was founded in 1927 and is headquartered in Bethesda, Maryland.
Smart money ownership
18 of the funds we track reported a position in their latest SEC 13F filing. Largest first:
- Terry Smith, Fundsmith LLP$1.10B · 8.6% of book
- Ken Griffin, CITADEL ADVISORS LLC$572.75M · 0.1% of book
- Parnassus Investments, PARNASSUS INVESTMENTS, LLC$519.39M · 1.5% of book
- Marshall Wace, MARSHALL WACE, LLP$338.28M · 0.3% of book
- Arrowstreet Capital, ARROWSTREET CAPITAL, LIMITED PARTNERSHIP$212.83M · 0.1% of book
A word of warning on reading these figures: a 13F reports the market value of a holding, so a fund that traded nothing at all still appears to have sold when the price fell. We found 102 companies where the standard reading gives the opposite answer. Only the share count is honest.
Common questions
Is Marriott International (MAR) undervalued?
Against our discounted cash flow estimate of $150.44, MAR at $371.14 is 59% above fair value. That is one model's answer, not a recommendation, and most of a DCF's output sits in a terminal value nobody can forecast.
Which funds own MAR?
18 of the institutions we track reported a position in MAR in their most recent SEC 13F filing. A 13F is filed up to 45 days after quarter end, so it tells you what a fund held then, not what it holds now.
What is MAR's P/E ratio?
MAR trades at 39.4 times earnings. A low P/E is not automatically cheap: on a cyclical company it is usually a warning that earnings are at a peak.
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Data from company filings, exchange quotes and SEC EDGAR 13F disclosures. Quotes are delayed. Metrics we do not have are left out rather than estimated. Educational information, not financial advice.