Revisiting Pebblebrook Hotel Trust (PEB) Valuation After a Tentative Share Price Rebound

Pebblebrook Hotel Trust (PEB) has had a choppy run lately, with the stock down over the past year but edging higher in the past month. This has prompted investors to reassess its recovery story.

See our latest analysis for Pebblebrook Hotel Trust.

With the share price now at $10.78, Pebblebrook’s recent 1 month share price return of 4.76% contrasts with a weak year to date share price return of 18.76%. This suggests momentum is only cautiously rebuilding after a deeper reset in total shareholder returns.

If you are weighing up what to own alongside a cyclical name like this, it could be worth scanning for fast growing stocks with high insider ownership as potential next wave candidates.

With Pebblebrook trading below analyst targets yet still nursing multi year total return losses, the key question now is whether this discount marks an undervalued recovery play or if the market already anticipates its future growth.

Most Popular Narrative: 14.3% Undervalued

With Pebblebrook Hotel Trust last closing at $10.78 versus a narrative fair value of $12.58, the current gap reflects cautious optimism about its recovery potential.

The ongoing recovery and strengthening of urban hotel demand, particularly in major gateway cities like San Francisco (where occupancy climbed from ~64% to nearly 70% year over year and remains well below peak levels), signals robust upside for further RevPAR and revenue growth as global travel and urbanization trends persist and major events return to cities.

Read the complete narrative.

Curious how modest revenue growth, margin rebuilding and a punchy future earnings multiple can still add up to that higher fair value? The full narrative unpacks the precise profit transition, share count moves and discount assumptions driving this call.

Result: Fair Value of $12.58 (UNDERVALUED)

Have a read of the narrative in full and understand what's behind the forecasts.

However, that upside depends on urban travel fully normalising, with rising city labor costs and climate related disruptions both capable of derailing the margin recovery.

Find out about the key risks to this Pebblebrook Hotel Trust narrative.

Build Your Own Pebblebrook Hotel Trust Narrative

If you see the story differently or prefer to dig into the numbers yourself, you can build a custom narrative in just minutes: Do it your way

A great starting point for your Pebblebrook Hotel Trust research is our analysis highlighting 2 key rewards and 1 important warning sign that could impact your investment decision.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

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