Summit Hotel Properties, Inc.

NYSE:INN.PRF Stock Report

Market Cap: US$758.6m

Summit Hotel Properties Valuation

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

Below Fair Value: INN.PRF ($20.85) is trading below our estimate of fair value ($31.24)

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

Key Valuation Metric

Which metric is best to use when looking at relative valuation for INN.PRF?

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

The above table shows the Price to Earnings ratio for INN.PRF. This is calculated by dividing INN.PRF's market cap by their current earnings.
What is INN.PRF's PE Ratio?
PE Ratio86.3x
EarningsUS$7.66m
Market CapUS$758.60m

Price to Earnings Ratio vs Peers

How does INN.PRF's PE Ratio compare to its peers?

The above table shows the PE ratio for INN.PRF vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyForward PEEstimated GrowthMarket Cap
Peer Average44.5x
HT Hersha Hospitality Trust
52.1x-60.2%US$482.9m
RLJ RLJ Lodging Trust
32.5x-31.9%US$1.5b
XHR Xenia Hotels & Resorts
62.8x11.7%US$1.5b
DRH DiamondRock Hospitality
30.8x24.5%US$1.9b
INN.PRF Summit Hotel Properties
86.3x-113.0%US$758.6m

Price-To-Earnings vs Peers: INN.PRF is expensive based on its Price-To-Earnings Ratio (86.3x) compared to the peer average (44.5x).

Price to Earnings Ratio vs Industry

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

5 CompaniesPrice / EarningsEstimated GrowthMarket Cap
INN.PRF 86.3xIndustry Avg. 17.9xNo. of Companies8PE01224364860+
5 CompaniesEstimated GrowthMarket Cap
No more companies

Price-To-Earnings vs Industry: INN.PRF is expensive based on its Price-To-Earnings Ratio (86.3x) compared to the Global Hotel and Resort REITs industry average (17.9x).

Price to Earnings Ratio vs Fair Ratio

What is INN.PRF'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.

INN.PRF PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio86.3x
Fair PE Ratio9.1x

Price-To-Earnings vs Fair Ratio: INN.PRF is expensive based on its Price-To-Earnings Ratio (86.3x) compared to the estimated Fair Price-To-Earnings Ratio (9.1x).

Analyst Price Targets

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

Analyst Forecast: Insufficient data to show price forecast.

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