CHH Valuation

Choice Hotels International Inc

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119.580

+0.49(0.411%)1D

Overview
Forecast
Valuation
Earnings

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 16.51 is considered Undervalued compared with the five-year average of 22.76. The fair price of Choice Hotels International Inc (CHH) is between 135.42 to 193.50 according to relative valuation methord. Compared to the current price of 119.09 USD , Choice Hotels International Inc is Undervalued By 12.06%.

Relative Value

Fair Zone

135.42-193.50

Current Price：119.09

12.06%

Undervalued

16.58

Trailing

Forward

11.78

EV/EBITDA

Choice Hotels International Inc. (CHH) has a current EV/EBITDA of 11.78. The 5-year average EV/EBITDA is 15.51. The thresholds are as follows: Strongly Undervalued below 9.28, Undervalued between 9.28 and 12.39, Fairly Valued between 18.63 and 12.39, Overvalued between 18.63 and 21.75, and Strongly Overvalued above 21.75. The current Forward EV/EBITDA of 11.78 falls within the Undervalued range.

15.41

EV/EBIT

Choice Hotels International Inc. (CHH) has a current EV/EBIT of 15.41. The 5-year average EV/EBIT is 17.89. The thresholds are as follows: Strongly Undervalued below 11.90, Undervalued between 11.90 and 14.89, Fairly Valued between 20.88 and 14.89, Overvalued between 20.88 and 23.88, and Strongly Overvalued above 23.88. The current Forward EV/EBIT of 15.41 falls within the Historic Trend Line -Fairly Valued range.

3.47

Choice Hotels International Inc. (CHH) has a current PS of 3.47. The 5-year average PS is 4.67. The thresholds are as follows: Strongly Undervalued below 2.58, Undervalued between 2.58 and 3.62, Fairly Valued between 5.71 and 3.62, Overvalued between 5.71 and 6.75, and Strongly Overvalued above 6.75. The current Forward PS of 3.47 falls within the Undervalued range.

19.37

P/OCF

Choice Hotels International Inc. (CHH) has a current P/OCF of 19.37. The 5-year average P/OCF is 20.08. The thresholds are as follows: Strongly Undervalued below 12.40, Undervalued between 12.40 and 16.24, Fairly Valued between 23.92 and 16.24, Overvalued between 23.92 and 27.76, and Strongly Overvalued above 27.76. The current Forward P/OCF of 19.37 falls within the Historic Trend Line -Fairly Valued range.

19.61

P/FCF

Choice Hotels International Inc. (CHH) has a current P/FCF of 19.61. The 5-year average P/FCF is 24.54. The thresholds are as follows: Strongly Undervalued below 5.74, Undervalued between 5.74 and 15.14, Fairly Valued between 33.94 and 15.14, Overvalued between 33.94 and 43.34, and Strongly Overvalued above 43.34. The current Forward P/FCF of 19.61 falls within the Historic Trend Line -Fairly Valued range.

Choice Hotels International Inc (CHH) has a current Price-to-Book (P/B) ratio of -208.44. Compared to its 3-year average P/B ratio of 82.06 , the current P/B ratio is approximately -354.02% higher. Relative to its 5-year average P/B ratio of 9.35, the current P/B ratio is about -2329.98% higher. Choice Hotels International Inc (CHH) has a Forward Free Cash Flow (FCF) yield of approximately 3.03%. Compared to its 3-year average FCF yield of 3.39%, the current FCF yield is approximately -10.84% lower. Relative to its 5-year average FCF yield of 3.14% , the current FCF yield is about -3.64% lower.

-209.29

P/B

Median3y

82.06

Median5y

9.35

3.03

FCF Yield

Median3y

3.39

Median5y

3.14

Competitors Valuation Multiple

The average P/S ratio for CHH's competitors is 2.42, providing a benchmark for relative valuation. Choice Hotels International Inc Corp (CHH) exhibits a P/S ratio of 3.47, which is 43.74% above the industry average. Given its robust revenue growth of 17.79%, this premium appears unsustainable.

P/S

P/E

EV/EBITDA

EV/EBIT

P/S

Revenue Growth

Market Cap

CHH.N

Choice Hotels International Inc

Atour Lifestyle Holdings Ltd

Wyndham Hotels & Resorts Inc

Performance Decomposition

Market capitalization of CHH decreased by 5.88% over the past 1 year. The primary factor behind the change was an increase in Revenue Growth from 219.96M to 259.09M.

The secondary factor is the P/E Change, contributed -3.30%to the performance.

Overall, the performance of CHH in the past 1 year is driven by Revenue Growth. Which is more sustainable.

17.79%

219.96M → 259.09M

Revenue Growth

-20.37%

39.62 → 31.55

Margin Expansion

-3.30%

19.03 → 18.40

P/E Change

-5.88%