DiamondRock Hospitality Company

DB:HBO Stock Report

Market Cap: €1.7b

DiamondRock Hospitality Valuation

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

Valuation Score

4/6

Valuation Score 4/6

  • 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 HBO when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Discounted Cash Flow
Simply Wall St
€11.34
Fair Value
26.8% undervalued intrinsic discount
11
Number of Analysts

Below Fair Value: HBO (€8.3) is trading below our estimate of fair value (€11.34)

Significantly Below Fair Value: HBO is trading below fair value by more than 20%.

Key Valuation Metric

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

Key metric: As HBO is profitable we use its Price-To-Earnings Ratio for relative valuation analysis.

The above table shows the Price to Earnings ratio for HBO. This is calculated by dividing HBO's market cap by their current earnings.
What is HBO's PE Ratio?
PE Ratio29.9x
EarningsUS$60.42m
Market CapUS$1.82b

Price to Earnings Ratio vs Peers

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

The above table shows the PE ratio for HBO vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyForward PEEstimated GrowthMarket Cap
Peer Average43.6x
HABA Hamborner REIT
64.4x10.0%€528.7m
SHO Sunstone Hotel Investors
14.9x-28.6%US$2.3b
RLJ RLJ Lodging Trust
33.1x-3.5%US$1.5b
XHR Xenia Hotels & Resorts
62.1x22.9%US$1.5b
HBO DiamondRock Hospitality
29.9x23.5%€1.8b

Price-To-Earnings vs Peers: HBO is good value based on its Price-To-Earnings Ratio (29.9x) compared to the peer average (43.7x).

Price to Earnings Ratio vs Industry

How does HBO's PE Ratio compare vs other companies in the Global Hotel and Resort REITs Industry?

3 CompaniesPrice / EarningsEstimated GrowthMarket Cap
HBO 29.9xIndustry Avg. 18.6xNo. of Companies6PE01224364860+
3 CompaniesEstimated GrowthMarket Cap
No more companies

Price-To-Earnings vs Industry: HBO is expensive based on its Price-To-Earnings Ratio (29.9x) compared to the Global Hotel and Resort REITs industry average (18.6x).

Price to Earnings Ratio vs Fair Ratio

What is HBO'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.

HBO PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio29.9x
Fair PE Ratio64.5x

Price-To-Earnings vs Fair Ratio: HBO is good value based on its Price-To-Earnings Ratio (29.9x) compared to the estimated Fair Price-To-Earnings Ratio (64.5x).

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 HBO forecast and predictions for the stock price in 12 month’s time.
DateShare PriceAverage 1Y Price TargetDispersionHighLow1Y Actual priceAnalysts
Current€8.30
€9.81
+18.2%
9.1%€11.44€8.58n/a11
Feb ’26€8.45
€9.94
+17.6%
9.1%€11.59€8.69n/a11
Jan ’26€8.65
€9.94
+14.9%
9.1%€11.59€8.69n/a11
Dec ’25€8.65
€9.70
+12.1%
8.9%€11.45€8.59n/a11
Nov ’25€7.40
€9.04
+22.1%
6.2%€10.13€8.28n/a11
Oct ’25€7.85
€8.82
+12.4%
6.7%€9.93€8.12n/a11
Sep ’25€7.85
€9.08
+15.6%
7.1%€10.07€8.24n/a11
Aug ’25€7.45
€9.27
+24.4%
7.7%€10.19€8.34n/a11
Jul ’25€7.65
€9.35
+22.3%
8.0%€10.14€8.30n/a12
Jun ’25€7.80
€9.35
+19.9%
8.0%€10.14€8.30n/a12
May ’25€8.30
€9.59
+15.5%
7.7%€10.35€8.47n/a12
Apr ’25€6.40
€9.34
+45.9%
7.6%€10.10€8.27n/a12
Mar ’25€8.75
€9.29
+6.2%
7.3%€10.14€8.29n/a12
Feb ’25€8.50
€9.18
+8.1%
7.8%€10.15€8.30€8.4512
Jan ’25€8.50
€8.83
+3.9%
6.3%€9.99€8.17€8.6511
Dec ’24€7.50
€9.05
+20.6%
6.3%€10.28€8.41€8.6511
Nov ’24€7.20
€9.17
+27.3%
9.1%€10.32€7.50€7.4011
Oct ’24€7.55
€9.17
+21.4%
9.1%€10.32€7.50€7.8511
Sep ’24€7.45
€9.13
+22.6%
9.7%€10.18€7.41€7.8511
Aug ’24€7.65
€9.10
+19.0%
9.9%€9.88€7.18€7.4511
Jul ’24€7.30
€9.34
+27.9%
10.5%€10.22€7.44€7.6511
Jun ’24€7.25
€9.34
+28.8%
10.5%€10.22€7.44€7.8011
May ’24€7.20
€9.21
+27.9%
10.5%€10.09€7.34€8.3011
Apr ’24€7.40
€9.21
+24.5%
10.5%€10.09€7.34€6.4011
Mar ’24€8.10
€9.66
+19.3%
7.3%€10.32€8.44€8.7510
Feb ’24€8.80
€9.65
+9.6%
8.4%€11.12€8.34€8.5011
Analyst Price Target
Consensus Narrative from 11 Analysts
€9.81
Fair Value
15.4% undervalued intrinsic discount
11
Number of Analysts

Analyst Forecast: Target price is less than 20% higher than the current share price.

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Company Analysis and Financial Data Status

DataLast Updated (UTC time)
Company Analysis2025/02/19 20:58
End of Day Share Price 2025/02/18 00:00
Earnings2024/09/30
Annual Earnings2023/12/31

Data Sources

The data used in our company analysis is from S&P Global Market Intelligence LLC. The following data is used in our analysis model to generate this report. Data is normalised which can introduce a delay from the source being available.

PackageDataTimeframeExample US Source *
Company Financials10 years
  • Income statement
  • Cash flow statement
  • Balance sheet
Analyst Consensus Estimates+3 years
  • Forecast financials
  • Analyst price targets
Market Prices30 years
  • Stock prices
  • Dividends, Splits and Actions
Ownership10 years
  • Top shareholders
  • Insider trading
Management10 years
  • Leadership team
  • Board of directors
Key Developments10 years
  • Company announcements

* Example for US securities, for non-US equivalent regulatory forms and sources are used.

Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more.

Analysis Model and Snowflake

Details of the analysis model used to generate this report is available on our Github page, we also have guides on how to use our reports and tutorials on Youtube.

Learn about the world class team who designed and built the Simply Wall St analysis model.

Industry and Sector Metrics

Our industry and section metrics are calculated every 6 hours by Simply Wall St, details of our process are available on Github.

Analyst Sources

DiamondRock Hospitality Company is covered by 33 analysts. 10 of those analysts submitted the estimates of revenue or earnings used as inputs to our report. Analysts submissions are updated throughout the day.

AnalystInstitution
Michael BellisarioBaird
Felicia Kantor HendrixBarclays
Floris Gerbrand van DijkumBoenning & Scattergood, Inc.