Choice Hotels International, Inc.

NYSE:CHH Stock Report

Market Cap: US$6.0b

Choice Hotels International Valuation

Is CHH undervalued compared to its fair value, analyst forecasts and its price relative to the market?

Valuation Score

1/6

Valuation Score 1/6

  • Below Fair Value

  • Significantly Below Fair Value

  • Price-To-Earnings vs Peers

  • Price-To-Earnings vs Industry

  • Price-To-Earnings vs Fair Ratio

  • Analyst Forecast

Share Price vs Fair Value

What is the Fair Price of CHH when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: CHH ($130.32) is trading below our estimate of fair value ($138.22)

Significantly Below Fair Value: CHH is trading below fair value, but not by a significant amount.

Key Valuation Metric

Which metric is best to use when looking at relative valuation for CHH?

Other financial metrics that can be useful for relative valuation.

CHH key valuation metrics and ratios. From Price to Earnings, Price to Sales and Price to Book to Price to Earnings Growth Ratio, Enterprise Value and EBITDA.
Key Statistics
Enterprise Value/Revenue10.2x
Enterprise Value/EBITDA16.9x
PEG Ratio2.3x

Price to Earnings Ratio vs Peers

How does CHH's PE Ratio compare to its peers?

The above table shows the PE ratio for CHH vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyForward PEEstimated GrowthMarket Cap
Peer Average17.8x
WH Wyndham Hotels & Resorts
24.3x12.6%US$6.1b
TNL Travel + Leisure
7.9x3.9%US$3.2b
VAC Marriott Vacations Worldwide
16x37.0%US$2.6b
HGV Hilton Grand Vacations
23x51.9%US$3.7b
CHH Choice Hotels International
25.7x11.3%US$6.0b

Price-To-Earnings vs Peers: CHH is expensive based on its Price-To-Earnings Ratio (25.7x) compared to the peer average (17.8x).

Price to Earnings Ratio vs Industry

How does CHH's PE Ratio compare vs other companies in the US Hospitality Industry?

0 CompaniesPrice / EarningsEstimated GrowthMarket Cap
Industry Avg.n/a22.5%
 n/an/an/a
No. of CompaniesPE048121620

Fetching data

0 CompaniesPrice / EarningsEstimated GrowthMarket Cap
Industry Avg.n/a22.5%
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Price-To-Earnings vs Industry: CHH is expensive based on its Price-To-Earnings Ratio (25.7x) compared to the US Hospitality industry average (24x).

Price to Earnings Ratio vs Fair Ratio

What is CHH's PE Ratio compared to its Fair PE Ratio? This is the expected PE Ratio taking into account the company's forecast earnings growth, profit margins and other risk factors.

CHH PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio25.7x
Fair PE Ratio20.3x

Price-To-Earnings vs Fair Ratio: CHH is expensive based on its Price-To-Earnings Ratio (25.7x) compared to the estimated Fair Price-To-Earnings Ratio (20.3x).

Analyst Price Targets

What is the analyst 12-month forecast and do we have any statistical confidence in the consensus price target?

The above table shows the analyst CHH forecast and predictions for the stock price in 12 month’s time.
DateShare PriceAverage 1Y Price TargetDispersionHighLow1Y Actual priceAnalysts
CurrentUS$130.32
US$123.57
-5.2%
10.3%US$150.00US$103.00n/a14
Oct ’25US$129.55
US$123.57
-4.6%
10.3%US$150.00US$103.00n/a14
Sep ’25US$127.59
US$124.25
-2.6%
9.9%US$150.00US$103.00n/a12
Aug ’25US$125.85
US$126.62
+0.6%
11.3%US$156.00US$100.00n/a13
Jul ’25US$118.89
US$126.08
+6.0%
11.3%US$156.00US$100.00n/a13
Jun ’25US$113.19
US$126.17
+11.5%
11.8%US$156.00US$100.00n/a12
May ’25US$119.12
US$127.68
+7.2%
11.0%US$156.00US$100.00n/a13
Apr ’25US$123.71
US$128.13
+3.6%
10.3%US$156.00US$100.00n/a14
Mar ’25US$109.83
US$122.83
+11.8%
10.6%US$142.00US$96.00n/a13
Feb ’25US$121.75
US$122.83
+0.9%
10.6%US$140.00US$96.00n/a13
Jan ’25US$113.30
US$123.75
+9.2%
11.4%US$140.00US$96.00n/a12
Dec ’24US$113.04
US$126.00
+11.5%
9.3%US$143.00US$100.00n/a12
Nov ’24US$110.94
US$128.33
+15.7%
8.4%US$143.00US$104.00n/a12
Oct ’24US$122.51
US$128.42
+4.8%
8.4%US$143.00US$104.00US$129.5512
Sep ’24US$127.91
US$127.58
-0.3%
7.8%US$142.00US$104.00US$127.5912
Aug ’24US$130.12
US$125.82
-3.3%
6.0%US$140.00US$115.00US$125.8511
Jul ’24US$117.52
US$124.73
+6.1%
6.8%US$140.00US$113.00US$118.8911
Jun ’24US$113.17
US$125.09
+10.5%
7.0%US$140.00US$113.00US$113.1911
May ’24US$128.05
US$124.90
-2.5%
7.0%US$140.00US$113.00US$119.1210
Apr ’24US$117.19
US$124.80
+6.5%
7.3%US$140.00US$113.00US$123.7110
Mar ’24US$119.78
US$124.00
+3.5%
6.3%US$140.00US$113.00US$109.8311
Feb ’24US$123.86
US$121.00
-2.3%
9.3%US$140.00US$107.00US$121.7511
Jan ’24US$112.64
US$120.40
+6.9%
8.1%US$140.00US$107.00US$113.3010
Dec ’23US$123.51
US$121.90
-1.3%
8.8%US$140.00US$107.00US$113.0410
Nov ’23US$130.38
US$123.60
-5.2%
8.5%US$145.00US$108.00US$110.9410
Oct ’23US$109.52
US$123.20
+12.5%
8.8%US$145.00US$108.00US$122.5110

Analyst Forecast: Target price is lower than the current share price.

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