DiamondRock Hospitality Company

NYSE:DRH Stock Report

Market Cap: US$1.8b

DiamondRock Hospitality Valuation

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

Below Fair Value: DRH ($8.7) is trading below our estimate of fair value ($10.88)

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


Key Valuation Metric

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

Other financial metrics that can be useful for relative valuation.

DRH 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/Revenue2.7x
Enterprise Value/EBITDA11.2x
PEG Ratio1.3x

Price to Earnings Ratio vs Peers

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

The above table shows the PE ratio for DRH vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyForward PEEstimated GrowthMarket Cap
Peer Average29.8x
SHO Sunstone Hotel Investors
12.4x-46.0%US$2.1b
XHR Xenia Hotels & Resorts
64.4x11.4%US$1.5b
RLJ RLJ Lodging Trust
33.4x-29.4%US$1.4b
PK Park Hotels & Resorts
8.8x5.9%US$2.9b
DRH DiamondRock Hospitality
29.4x23.5%US$1.8b

Price-To-Earnings vs Peers: DRH is good value based on its Price-To-Earnings Ratio (29.4x) compared to the peer average (29.8x).


Price to Earnings Ratio vs Industry

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

0 CompaniesPrice / EarningsEstimated GrowthMarket Cap
Industry Avg.n/a3.6%
n/an/an/a
No. of CompaniesPE048121620

Fetching data

0 CompaniesPrice / EarningsEstimated GrowthMarket Cap
Industry Avg.n/a3.6%
n/an/an/a
No more companies

Price-To-Earnings vs Industry: DRH is expensive based on its Price-To-Earnings Ratio (29.4x) compared to the Global Hotel and Resort REITs industry average (17.1x).


Price to Earnings Ratio vs Fair Ratio

What is DRH'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.

DRH PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio29.4x
Fair PE Ratio40.7x

Price-To-Earnings vs Fair Ratio: DRH is good value based on its Price-To-Earnings Ratio (29.4x) compared to the estimated Fair Price-To-Earnings Ratio (40.7x).


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 DRH forecast and predictions for the stock price in 12 month’s time.
DateShare PriceAverage 1Y Price TargetDispersionHighLow1Y Actual priceAnalysts
CurrentUS$8.70
US$9.82
+12.9%
6.2%US$11.00US$9.00n/a11
Oct ’25US$8.75
US$9.77
+11.7%
6.7%US$11.00US$9.00n/a11
Sep ’25US$8.79
US$9.91
+12.7%
7.1%US$11.00US$9.00n/a11
Aug ’25US$8.09
US$10.00
+23.6%
7.7%US$11.00US$9.00n/a11
Jul ’25US$8.28
US$10.15
+22.5%
8.0%US$11.00US$9.00n/a12
Jun ’25US$8.47
US$10.15
+19.8%
8.0%US$11.00US$9.00n/a12
May ’25US$8.85
US$10.19
+15.1%
7.7%US$11.00US$9.00n/a12
Apr ’25US$9.54
US$10.17
+6.6%
7.6%US$11.00US$9.00n/a12
Mar ’25US$9.54
US$10.08
+5.7%
7.3%US$11.00US$9.00n/a12
Feb ’25US$9.30
US$9.96
+7.1%
7.8%US$11.00US$9.00n/a12
Jan ’25US$9.39
US$9.73
+3.6%
6.3%US$11.00US$9.00n/a11
Dec ’24US$8.48
US$9.68
+14.2%
6.3%US$11.00US$9.00n/a11
Nov ’24US$7.77
US$9.77
+25.8%
9.1%US$11.00US$8.00US$8.6011
Oct ’24US$8.03
US$9.77
+21.7%
9.1%US$11.00US$8.00US$8.7511
Sep ’24US$8.01
US$9.86
+23.1%
9.7%US$11.00US$8.00US$8.7911
Aug ’24US$8.38
US$10.14
+21.0%
9.9%US$11.00US$8.00US$8.0911
Jul ’24US$8.01
US$10.05
+25.4%
10.5%US$11.00US$8.00US$8.2811
Jun ’24US$7.88
US$10.05
+27.5%
10.5%US$11.00US$8.00US$8.4711
May ’24US$8.25
US$10.05
+21.8%
10.5%US$11.00US$8.00US$8.8511
Apr ’24US$8.13
US$10.05
+23.6%
10.5%US$11.00US$8.00US$9.5411
Mar ’24US$8.70
US$10.30
+18.4%
7.3%US$11.00US$9.00US$9.5410
Feb ’24US$9.72
US$10.41
+7.1%
8.4%US$12.00US$9.00US$9.3011
Jan ’24US$8.19
US$10.61
+29.6%
7.2%US$12.00US$9.00US$9.3911
Dec ’23US$9.39
US$10.64
+13.3%
7.6%US$12.00US$9.00US$8.489
Nov ’23US$9.38
US$10.78
+14.9%
8.1%US$12.00US$9.00US$7.7710

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


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