Choice Hotels International, Inc.

NYSE:CHH Stock Report

Market Cap: US$7.0b

Choice Hotels International Valuation

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

Valuation Score

2/6

Valuation Score 2/6

  • 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 ($149.64) is trading below our estimate of fair value ($197.27)

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

Key Valuation Metric

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

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

The above table shows the Price to Earnings ratio for CHH. This is calculated by dividing CHH's market cap by their current earnings.
What is CHH's PE Ratio?
PE Ratio27.7x
EarningsUS$251.54m
Market CapUS$6.96b

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 Average26.1x
WH Wyndham Hotels & Resorts
29.7x13.7%US$7.5b
HGV Hilton Grand Vacations
43.7x120.1%US$4.2b
TNL Travel + Leisure
9.7x7.7%US$3.8b
HTHT H World Group
21.4x13.1%US$11.2b
CHH Choice Hotels International
27.7x10.3%US$7.0b

Price-To-Earnings vs Peers: CHH is expensive based on its Price-To-Earnings Ratio (27.7x) compared to the peer average (26.1x).

Price to Earnings Ratio vs Industry

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

2 CompaniesPrice / EarningsEstimated GrowthMarket Cap
GDHG Golden Heaven Group Holdings
3.7xn/aUS$6.21m
THRS.F Agility Real Estate
1.7xn/aUS$2.05m
No more companies available in this PE range
CHH 27.7xIndustry Avg. 25.0xNo. of Companies15PE01632486480+
2 CompaniesEstimated GrowthMarket Cap
No more companies

Price-To-Earnings vs Industry: CHH is expensive based on its Price-To-Earnings Ratio (27.7x) compared to the US Hospitality industry average (25x).

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 Ratio27.7x
Fair PE Ratio21.8x

Price-To-Earnings vs Fair Ratio: CHH is expensive based on its Price-To-Earnings Ratio (27.7x) compared to the estimated Fair Price-To-Earnings Ratio (21.8x).

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$149.64
US$130.79
-12.6%
11.4%US$160.00US$110.00n/a14
Nov ’25US$138.76
US$124.21
-10.5%
10.7%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$104.00US$138.7612
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

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

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