DRH Valuation

Diamondrock Hospitality Co

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8.105

+0.155(1.950%)1D

Overview
Forecast
Valuation
Earnings

DRH Relative Valuation

DRH'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, DRH is overvalued; if below, it's undervalued.

Historical Valuation

Diamondrock Hospitality Co (DRH) is now in the Undervalued zone, suggesting that its current forward PS ratio of 1.45 is considered Undervalued compared with the five-year average of 37.82. The fair price of Diamondrock Hospitality Co (DRH) is between 12.20 to 19.36 according to relative valuation methord. Compared to the current price of 7.95 USD , Diamondrock Hospitality Co is Undervalued By 34.83%.

Relative Value

Fair Zone

12.20-19.36

Current Price：7.95

34.83%

Undervalued

18.59

Trailing

Forward

9.61

EV/EBITDA

Diamondrock Hospitality Co. (DRH) has a current EV/EBITDA of 9.61. The 5-year average EV/EBITDA is 6.45. The thresholds are as follows: Strongly Undervalued below -53.30, Undervalued between -53.30 and -23.42, Fairly Valued between 36.32 and -23.42, Overvalued between 36.32 and 66.19, and Strongly Overvalued above 66.19. The current Forward EV/EBITDA of 9.61 falls within the Historic Trend Line -Fairly Valued range.

17.68

EV/EBIT

Diamondrock Hospitality Co. (DRH) has a current EV/EBIT of 17.68. The 5-year average EV/EBIT is 9.94. The thresholds are as follows: Strongly Undervalued below -57.24, Undervalued between -57.24 and -23.65, Fairly Valued between 43.53 and -23.65, Overvalued between 43.53 and 77.11, and Strongly Overvalued above 77.11. The current Forward EV/EBIT of 17.68 falls within the Historic Trend Line -Fairly Valued range.

1.45

Diamondrock Hospitality Co. (DRH) has a current PS of 1.45. The 5-year average PS is 2.12. The thresholds are as follows: Strongly Undervalued below 0.49, Undervalued between 0.49 and 1.31, Fairly Valued between 2.94 and 1.31, Overvalued between 2.94 and 3.75, and Strongly Overvalued above 3.75. The current Forward PS of 1.45 falls within the Historic Trend Line -Fairly Valued range.

0.00

P/OCF

Diamondrock Hospitality Co. (DRH) has a current P/OCF of 0.00. The 5-year average P/OCF is 108.48. The thresholds are as follows: Strongly Undervalued below -785.26, Undervalued between -785.26 and -338.39, Fairly Valued between 555.35 and -338.39, Overvalued between 555.35 and 1002.22, and Strongly Overvalued above 1002.22. The current Forward P/OCF of 0.00 falls within the Historic Trend Line -Fairly Valued range.

20.42

P/FCF

Diamondrock Hospitality Co. (DRH) has a current P/FCF of 20.42. The 5-year average P/FCF is 13.96. The thresholds are as follows: Strongly Undervalued below -116.18, Undervalued between -116.18 and -51.11, Fairly Valued between 79.03 and -51.11, Overvalued between 79.03 and 144.10, and Strongly Overvalued above 144.10. The current Forward P/FCF of 20.42 falls within the Historic Trend Line -Fairly Valued range.

Diamondrock Hospitality Co (DRH) has a current Price-to-Book (P/B) ratio of 1.03. Compared to its 3-year average P/B ratio of 1.10 , the current P/B ratio is approximately -6.06% higher. Relative to its 5-year average P/B ratio of 1.13, the current P/B ratio is about -8.76% higher. Diamondrock Hospitality Co (DRH) has a Forward Free Cash Flow (FCF) yield of approximately 14.74%. Compared to its 3-year average FCF yield of 12.19%, the current FCF yield is approximately 20.93% lower. Relative to its 5-year average FCF yield of 6.80% , the current FCF yield is about 116.76% lower.

1.03

P/B

Median3y

1.10

Median5y

1.13

14.74

FCF Yield

Median3y

12.19

Median5y

6.80

Competitors Valuation Multiple

The average P/S ratio for DRH's competitors is 5.10, providing a benchmark for relative valuation. Diamondrock Hospitality Co Corp (DRH) exhibits a P/S ratio of 1.45, which is -71.64% above the industry average. Given its robust revenue growth of -1.15%, this premium appears unsustainable.

P/S

P/E

EV/EBITDA

EV/EBIT

P/S

Revenue Growth

Market Cap

DRH.N

Diamondrock Hospitality Co

Performance Decomposition

Market capitalization of DRH decreased by 5.95% over the past 1 year. The primary factor behind the change was an increase in Margin Expansion from 7.96 to 13.42.

The secondary factor is the Revenue Growth, contributed -1.15%to the performance.

Overall, the performance of DRH in the past 1 year is driven by Margin Expansion. Which is more sustainable.

-1.15%

309.28M → 305.72M

Revenue Growth

68.59%

7.96 → 13.42

Margin Expansion

-73.39%

106.55 → 28.35

P/E Change

-5.95%