
SHO Valuation
Sunstone Hotel Investors Inc
- Overview
- Forecast
- Valuation
- Earnings
SHO Relative Valuation
SHO'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, SHO is overvalued; if below, it's undervalued.
Historical Valuation
Sunstone Hotel Investors Inc (SHO) is now in the Undervalued zone, suggesting that its current forward PS ratio of 1.84 is considered Undervalued compared with the five-year average of 40.36. The fair price of Sunstone Hotel Investors Inc (SHO) is between 10.49 to 19.93 according to relative valuation methord. Compared to the current price of 9.02 USD , Sunstone Hotel Investors Inc is Undervalued By 13.98%.
Relative Value
Fair Zone
10.49-19.93
Current Price:9.02
13.98%
Undervalued
51.08
PE
1Y
3Y
5Y
Trailing
Forward
11.36
EV/EBITDA
Sunstone Hotel Investors Inc. (SHO) has a current EV/EBITDA of 11.36. The 5-year average EV/EBITDA is 7.98. The thresholds are as follows: Strongly Undervalued below -48.21, Undervalued between -48.21 and -20.11, Fairly Valued between 36.08 and -20.11, Overvalued between 36.08 and 64.17, and Strongly Overvalued above 64.17. The current Forward EV/EBITDA of 11.36 falls within the Historic Trend Line -Fairly Valued range.
29.30
EV/EBIT
Sunstone Hotel Investors Inc. (SHO) has a current EV/EBIT of 29.30. The 5-year average EV/EBIT is 20.48. The thresholds are as follows: Strongly Undervalued below -52.69, Undervalued between -52.69 and -16.11, Fairly Valued between 57.06 and -16.11, Overvalued between 57.06 and 93.65, and Strongly Overvalued above 93.65. The current Forward EV/EBIT of 29.30 falls within the Historic Trend Line -Fairly Valued range.
1.84
PS
Sunstone Hotel Investors Inc. (SHO) has a current PS of 1.84. The 5-year average PS is 2.91. The thresholds are as follows: Strongly Undervalued below 0.50, Undervalued between 0.50 and 1.71, Fairly Valued between 4.12 and 1.71, Overvalued between 4.12 and 5.32, and Strongly Overvalued above 5.32. The current Forward PS of 1.84 falls within the Historic Trend Line -Fairly Valued range.
11.22
P/OCF
Sunstone Hotel Investors Inc. (SHO) has a current P/OCF of 11.22. The 5-year average P/OCF is 11.65. The thresholds are as follows: Strongly Undervalued below -43.09, Undervalued between -43.09 and -15.72, Fairly Valued between 39.03 and -15.72, Overvalued between 39.03 and 66.40, and Strongly Overvalued above 66.40. The current Forward P/OCF of 11.22 falls within the Historic Trend Line -Fairly Valued range.
39.12
P/FCF
Sunstone Hotel Investors Inc. (SHO) has a current P/FCF of 39.12. The 5-year average P/FCF is 27.47. The thresholds are as follows: Strongly Undervalued below -65.58, Undervalued between -65.58 and -19.06, Fairly Valued between 73.99 and -19.06, Overvalued between 73.99 and 120.52, and Strongly Overvalued above 120.52. The current Forward P/FCF of 39.12 falls within the Historic Trend Line -Fairly Valued range.
Sunstone Hotel Investors Inc (SHO) has a current Price-to-Book (P/B) ratio of 1.01. Compared to its 3-year average P/B ratio of 1.14 , the current P/B ratio is approximately -11.80% higher. Relative to its 5-year average P/B ratio of 1.21, the current P/B ratio is about -16.69% higher. Sunstone Hotel Investors Inc (SHO) has a Forward Free Cash Flow (FCF) yield of approximately 9.21%. Compared to its 3-year average FCF yield of 9.25%, the current FCF yield is approximately -0.42% lower. Relative to its 5-year average FCF yield of 5.31% , the current FCF yield is about 73.48% lower.
1.01
P/B
Median3y
1.14
Median5y
1.21
9.21
FCF Yield
Median3y
9.25
Median5y
5.31
Competitors Valuation Multiple
The average P/S ratio for SHO's competitors is 3.37, providing a benchmark for relative valuation. Sunstone Hotel Investors Inc Corp (SHO) exhibits a P/S ratio of 1.84, which is -45.40% above the industry average. Given its robust revenue growth of 7.78%, this premium appears unsustainable.
Performance Decomposition
1Y
3Y
5Y
Market capitalization of SHO decreased by 11.52% over the past 1 year. The primary factor behind the change was an increase in P/E Change from 64.21 to 91.95.
The secondary factor is the Revenue Growth, contributed 7.78%to the performance.
Overall, the performance of SHO in the past 1 year is driven by P/E Change. Which is more unsustainable.
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FAQ

Is Sunstone Hotel Investors Inc (SHO) currently overvalued or undervalued?
Sunstone Hotel Investors Inc (SHO) is now in the Undervalued zone, suggesting that its current forward PS ratio of 1.84 is considered Undervalued compared with the five-year average of 40.36. The fair price of Sunstone Hotel Investors Inc (SHO) is between 10.49 to 19.93 according to relative valuation methord. Compared to the current price of 9.02 USD , Sunstone Hotel Investors Inc is Undervalued By 13.98% .

What is Sunstone Hotel Investors Inc (SHO) fair value?

How does SHO's valuation metrics compare to the industry average?

What is the current P/B ratio for Sunstone Hotel Investors Inc (SHO) as of Jul 28 2025?

What is the current FCF Yield for Sunstone Hotel Investors Inc (SHO) as of Jul 28 2025?

What is the current Forward P/E ratio for Sunstone Hotel Investors Inc (SHO) as of Jul 28 2025?
