Sunstone Hotel Investors, Inc.

NYSE:SHO Stock Report

Market Cap: US$2.4b

Sunstone Hotel Investors Valuation

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

Valuation Score

3/6

Valuation Score 3/6

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

Below Fair Value: SHO ($12.01) is trading above our estimate of fair value ($10.53)

Significantly Below Fair Value: SHO is trading above our estimate of fair value.

Key Valuation Metric

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

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

The above table shows the Price to Earnings ratio for SHO. This is calculated by dividing SHO's market cap by their current earnings.
What is SHO's PE Ratio?
PE Ratio15.7x
EarningsUS$154.04m
Market CapUS$2.41b

Price to Earnings Ratio vs Peers

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

The above table shows the PE ratio for SHO vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyForward PEEstimated GrowthMarket Cap
Peer Average35.1x
PK Park Hotels & Resorts
9.3x1.3%US$3.1b
DRH DiamondRock Hospitality
32x27.1%US$1.9b
RLJ RLJ Lodging Trust
34.9x-41.2%US$1.6b
XHR Xenia Hotels & Resorts
64.2x11.7%US$1.5b
SHO Sunstone Hotel Investors
15.7x-34.8%US$2.4b

Price-To-Earnings vs Peers: SHO is good value based on its Price-To-Earnings Ratio (15.7x) compared to the peer average (35.1x).

Price to Earnings Ratio vs Industry

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

3 CompaniesPrice / EarningsEstimated GrowthMarket Cap
SHO 15.7xIndustry Avg. 18.2xNo. of Companies9PE01224364860+
3 CompaniesEstimated GrowthMarket Cap
No more companies

Price-To-Earnings vs Industry: SHO is good value based on its Price-To-Earnings Ratio (15.7x) compared to the Global Hotel and Resort REITs industry average (18.2x).

Price to Earnings Ratio vs Fair Ratio

What is SHO'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.

SHO PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio15.7x
Fair PE Ratio22.2x

Price-To-Earnings vs Fair Ratio: SHO is good value based on its Price-To-Earnings Ratio (15.7x) compared to the estimated Fair Price-To-Earnings Ratio (22.2x).

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 SHO forecast and predictions for the stock price in 12 month’s time.
DateShare PriceAverage 1Y Price TargetDispersionHighLow1Y Actual priceAnalysts
CurrentUS$12.01
US$11.38
-5.3%
9.7%US$13.00US$10.00n/a12
Dec ’25US$10.75
US$11.13
+3.5%
7.8%US$12.00US$10.00n/a12
Nov ’25US$10.13
US$11.04
+9.0%
7.5%US$12.00US$10.00n/a12
Oct ’25US$10.23
US$11.00
+7.5%
7.7%US$12.00US$10.00n/a12
Sep ’25US$10.43
US$11.00
+5.5%
7.7%US$12.00US$10.00n/a12
Aug ’25US$10.12
US$11.33
+12.0%
5.8%US$12.00US$10.00n/a12
Jul ’25US$10.15
US$11.17
+10.0%
6.4%US$12.00US$10.00n/a12
Jun ’25US$10.28
US$11.27
+9.7%
5.8%US$12.00US$10.00n/a11
May ’25US$10.23
US$10.80
+5.6%
6.9%US$12.00US$10.00n/a5
Apr ’25US$11.03
US$10.92
-1.0%
7.7%US$13.00US$10.00n/a12
Mar ’25US$11.30
US$10.41
-7.9%
5.3%US$11.50US$10.00n/a11
Feb ’25US$10.83
US$10.13
-6.5%
9.0%US$12.00US$9.00n/a12
Jan ’25US$10.73
US$10.04
-6.4%
9.6%US$12.00US$9.00n/a12
Dec ’24US$10.04
US$9.88
-1.6%
8.8%US$11.50US$9.00US$10.7512
Nov ’24US$9.18
US$9.79
+6.7%
10.1%US$11.50US$8.00US$10.1312
Oct ’24US$9.35
US$9.79
+4.7%
10.1%US$11.50US$8.00US$10.2312
Sep ’24US$9.00
US$9.88
+9.7%
9.7%US$11.50US$8.00US$10.4312
Aug ’24US$10.10
US$10.29
+1.9%
7.5%US$11.50US$9.00US$10.1212
Jul ’24US$10.12
US$10.17
+0.5%
7.6%US$11.50US$9.00US$10.1512
Jun ’24US$9.97
US$10.08
+1.1%
8.3%US$11.50US$9.00US$10.2812
May ’24US$9.67
US$10.08
+4.3%
8.3%US$11.50US$9.00US$10.2312
Apr ’24US$9.88
US$10.08
+2.1%
8.3%US$11.50US$9.00US$11.0312
Mar ’24US$10.68
US$10.75
+0.7%
8.4%US$12.00US$9.00US$11.3012
Feb ’24US$11.04
US$10.83
-1.9%
8.1%US$12.00US$9.00US$10.8312
Jan ’24US$9.66
US$11.25
+16.5%
7.1%US$13.00US$10.00US$10.7312
Dec ’23US$11.04
US$11.45
+3.8%
6.6%US$13.00US$10.00US$10.0411

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 Analysis2024/12/22 03:53
End of Day Share Price 2024/12/20 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

Sunstone Hotel Investors, Inc. is covered by 31 analysts. 9 of those analysts submitted the estimates of revenue or earnings used as inputs to our report. Analysts submissions are updated throughout the day.

AnalystInstitution
Michael BellisarioBaird
Felicia Kantor HendrixBarclays
Blair BrantleyBB&T Capital Markets