Choice Hotels International, Inc.

NYSE:CHH Stock Report

Market Cap: US$6.5b

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 ($140.71) is trading below our estimate of fair value ($152.57)

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?

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 Ratio26x
EarningsUS$251.54m
Market CapUS$6.55b

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 Average25.6x
WH Wyndham Hotels & Resorts
31.4x15.0%US$7.9b
HGV Hilton Grand Vacations
41.4x114.6%US$3.9b
HTHT H World Group
20.7x14.5%US$10.6b
TNL Travel + Leisure
9x7.8%US$3.5b
CHH Choice Hotels International
26x9.4%US$6.5b

Price-To-Earnings vs Peers: CHH is expensive based on its Price-To-Earnings Ratio (26x) compared to the peer average (25.6x).

Price to Earnings Ratio vs Industry

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

1 CompanyPrice / EarningsEstimated GrowthMarket Cap
THRS.F Agility Real Estate
1.7xn/aUS$2.05m
No more companies available in this PE range
CHH 26.0xIndustry Avg. 23.8xNo. of Companies14PE01632486480+
1 CompanyEstimated GrowthMarket Cap
No more companies

Price-To-Earnings vs Industry: CHH is expensive based on its Price-To-Earnings Ratio (26x) compared to the US Hospitality industry average (23.8x).

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 Ratio26x
Fair PE Ratio21.3x

Price-To-Earnings vs Fair Ratio: CHH is expensive based on its Price-To-Earnings Ratio (26x) compared to the estimated Fair Price-To-Earnings Ratio (21.3x).

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$140.71
US$134.33
-4.5%
11.0%US$160.00US$110.00n/a16
Dec ’25US$151.24
US$130.79
-13.5%
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$100.00US$151.2412
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

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

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Company Analysis and Financial Data Status

DataLast Updated (UTC time)
Company Analysis2024/12/26 08:26
End of Day Share Price 2024/12/24 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 here.

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 .

Analyst Sources

Choice Hotels International, Inc. is covered by 31 analysts. 12 of those analysts submitted the estimates of revenue or earnings used as inputs to our report. Analysts submissions are updated throughout the day.

AnalystInstitution
Fred LowranceAvondale Partners
Michael BellisarioBaird
Felicia Kantor HendrixBarclays