Assessing Marriott Vacations Worldwide (VAC) Valuation After Dividend Hike and Extended Share Buyback Plan

Marriott Vacations Worldwide (VAC) just doubled down on shareholder returns by lifting its quarterly dividend to 0.80 dollars per share and extending its stock buyback plan through the end of 2026.

See our latest analysis for Marriott Vacations Worldwide.

Even with this richer dividend and extended buyback signaling management’s confidence, the stock’s 1 month share price return of 13.72 percent comes after a steep year to date share price decline and multi year total shareholder returns that remain deeply negative. This suggests sentiment is stabilizing rather than surging.

If this kind of capital return story has you rethinking where you hunt for ideas, it might be worth exploring fast growing stocks with high insider ownership as a fresh source of potential opportunities.

With shares still down sharply over one and three years despite solid revenue and profit growth, plus a dividend hike and buyback extension, is Marriott Vacations now a discounted recovery play, or has the market already priced in the rebound?

Most Popular Narrative Narrative: 9.8% Undervalued

Compared with Marriott Vacations Worldwide’s last close of 57.76 dollars, the most popular narrative anchors its fair value meaningfully higher and builds its case around earnings power and future multiple expansion.

Analysts expect earnings to reach 355.3 million dollars (and earnings per share of 7.73 dollars) by about September 2028, up from 259.0 million dollars today. The analysts are largely in agreement about this estimate.

Read the complete narrative.

Want to see how ambitious revenue growth, margin shifts, and a re-rated earnings multiple combine into that higher value target? The full narrative reveals the exact roadmap, step by step.

Result: Fair Value of $64 (UNDERVALUED)

Have a read of the narrative in full and understand what's behind the forecasts.

However, slowing owner sales and rising loan loss provisions mean credit risk and weaker upgrades could quickly undermine the case for a smooth earnings recovery.

Find out about the key risks to this Marriott Vacations Worldwide narrative.

Build Your Own Marriott Vacations Worldwide Narrative

If you see the story differently or want to test your own assumptions against the numbers, you can build a custom view in just minutes, starting with Do it your way.

A great starting point for your Marriott Vacations Worldwide research is our analysis highlighting 3 key rewards and 2 important warning signs that could impact your investment decision.

Ready for more high conviction ideas?

Do not stop at one opportunity. Use the Simply Wall Street Screener to find additional stocks that match your strategy before the market moves on without you.

• Look for potentially mispriced quality by tracking these 909 undervalued stocks based on cash flows that combine solid fundamentals with attractive valuations before sentiment fully catches up.
• Seek structural growth by focusing on these 24 AI penny stocks that are involved in automation, data intelligence, and next generation software platforms.
• Strengthen your income stream by targeting these 12 dividend stocks with yields > 3% that may add consistent cash flow alongside your capital appreciation goals.

This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team@simplywallst.com