CHH Relative Valuation
CHH's fair value is calculated using relative valuation, based on historical P/E and P/S ranges and their premiums/discounts relative to a competitor average, adjusted by weights. If the market price exceeds this fair value range, CHH is overvalued; if below, it's undervalued.
Historical Valuation
Choice Hotels International Inc (CHH) is now in the Undervalued zone, suggesting that its current forward PE ratio of 12.47 is considered Undervalued compared with the five-year average of 21.82. The fair price of Choice Hotels International Inc (CHH) is between 119.69 to 174.59 according to relative valuation methord. Compared to the current price of 87.86 USD , Choice Hotels International Inc is Undervalued By 26.59%.
Relative Value
Fair Zone
119.69-174.59
Current Price：87.86
26.59%
Undervalued
12.47
PE
1Y
3Y
5Y
Trailing
Forward
9.84
EV/EBITDA
Choice Hotels International Inc. (CHH) has a current EV/EBITDA of 9.84. The 5-year average EV/EBITDA is 14.95. The thresholds are as follows: Strongly Undervalued below 8.93, Undervalued between 8.93 and 11.94, Fairly Valued between 17.95 and 11.94, Overvalued between 17.95 and 20.96, and Strongly Overvalued above 20.96. The current Forward EV/EBITDA of 9.84 falls within the Undervalued range.
12.91
EV/EBIT
Choice Hotels International Inc. (CHH) has a current EV/EBIT of 12.91. The 5-year average EV/EBIT is 17.32. The thresholds are as follows: Strongly Undervalued below 11.95, Undervalued between 11.95 and 14.63, Fairly Valued between 20.00 and 14.63, Overvalued between 20.00 and 22.69, and Strongly Overvalued above 22.69. The current Forward EV/EBIT of 12.91 falls within the Undervalued range.
2.67
PS
Choice Hotels International Inc. (CHH) has a current PS of 2.67. The 5-year average PS is 4.52. The thresholds are as follows: Strongly Undervalued below 2.36, Undervalued between 2.36 and 3.44, Fairly Valued between 5.61 and 3.44, Overvalued between 5.61 and 6.69, and Strongly Overvalued above 6.69. The current Forward PS of 2.67 falls within the Undervalued range.
12.97
P/OCF
Choice Hotels International Inc. (CHH) has a current P/OCF of 12.97. The 5-year average P/OCF is 19.55. The thresholds are as follows: Strongly Undervalued below 11.90, Undervalued between 11.90 and 15.72, Fairly Valued between 23.37 and 15.72, Overvalued between 23.37 and 27.19, and Strongly Overvalued above 27.19. The current Forward P/OCF of 12.97 falls within the Undervalued range.
22.16
P/FCF
Choice Hotels International Inc. (CHH) has a current P/FCF of 22.16. The 5-year average P/FCF is 24.08. The thresholds are as follows: Strongly Undervalued below 5.32, Undervalued between 5.32 and 14.70, Fairly Valued between 33.46 and 14.70, Overvalued between 33.46 and 42.84, and Strongly Overvalued above 42.84. The current Forward P/FCF of 22.16 falls within the Historic Trend Line -Fairly Valued range.
Choice Hotels International Inc (CHH) has a current Price-to-Book (P/B) ratio of 26.94. Compared to its 3-year average P/B ratio of 76.54 , the current P/B ratio is approximately -64.80% higher. Relative to its 5-year average P/B ratio of 18.35, the current P/B ratio is about 46.83% higher. Choice Hotels International Inc (CHH) has a Forward Free Cash Flow (FCF) yield of approximately 0.00%. Compared to its 3-year average FCF yield of 3.21%, the current FCF yield is approximately -100.00% lower. Relative to its 5-year average FCF yield of 3.24% , the current FCF yield is about -100.00% lower.
26.94
P/B
Median3y
76.54
Median5y
18.35
2.95
FCF Yield
Median3y
3.21
Median5y
3.24
Competitors Valuation Multiple
The average P/S ratio for CHH's competitors is , providing a benchmark for relative valuation. Choice Hotels International Inc Corp (CHH) exhibits a P/S ratio of , which is NaN% above the industry average. Given its robust revenue growth of 29.27%, this premium appears sustainable.
P/S
P/E
EV/EBITDA
EV/EBIT
P/S
Revenue Growth
Market Cap
Performance Decomposition
1Y
3Y
5Y
Market capitalization of CHH decreased by 38.12% over the past 1 year. The primary factor behind the change was an increase in Margin Expansion from 49.17 to 64.77.
The secondary factor is the Revenue Growth, contributed 29.27%to the performance.
Overall, the performance of CHH in the past 1 year is driven by Margin Expansion. Which is more sustainable.
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