DiamondRock Hospitality Current Valuation vs. Debt To Equity

DRH-PA Preferred Stock  USD 26.06  0.05  0.19%   
Based on the key profitability measurements obtained from DiamondRock Hospitality's financial statements, DiamondRock Hospitality may not be well positioned to generate adequate gross income at the present time. It has a very high likelihood of underperforming in December. Profitability indicators assess DiamondRock Hospitality's ability to earn profits and add value for shareholders.
For DiamondRock Hospitality profitability analysis, we use financial ratios and fundamental drivers that measure the ability of DiamondRock Hospitality to generate income relative to revenue, assets, operating costs, and current equity. These fundamental indicators attest to how well DiamondRock Hospitality utilizes its assets to generate profit and value for its shareholders. The profitability module also shows relationships between DiamondRock Hospitality's most relevant fundamental drivers. It provides multiple suggestions of what could affect the performance of DiamondRock Hospitality over time as well as its relative position and ranking within its peers.
  
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Please note, there is a significant difference between DiamondRock Hospitality's value and its price as these two are different measures arrived at by different means. Investors typically determine if DiamondRock Hospitality is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, DiamondRock Hospitality's price is the amount at which it trades on the open market and represents the number that a seller and buyer find agreeable to each party.

DiamondRock Hospitality Debt To Equity vs. Current Valuation Fundamental Analysis

Comparative valuation techniques use various fundamental indicators to help in determining DiamondRock Hospitality's current stock value. Our valuation model uses many indicators to compare DiamondRock Hospitality value to that of its competitors to determine the firm's financial worth.
DiamondRock Hospitality is rated as one of the top companies in current valuation category among its peers. It also is one of the top stocks in debt to equity category among its peers . The ratio of Current Valuation to Debt To Equity for DiamondRock Hospitality is about  9,341,769,195 . Comparative valuation analysis is a catch-all model that can be used if you cannot value DiamondRock Hospitality by discounting back its dividends or cash flows. This model doesn't attempt to find an intrinsic value for DiamondRock Hospitality's Preferred Stock. Still, instead, it compares the stock's price multiples to a benchmark or nearest competition to determine if the stock is relatively undervalued or overvalued.

DiamondRock Current Valuation vs. Competition

DiamondRock Hospitality is rated as one of the top companies in current valuation category among its peers. After adjusting for long-term liabilities, total market size of Real Estate industry is currently estimated at about 13.29 Billion. DiamondRock Hospitality totals roughly 6.57 Billion in current valuation claiming about 49% of equities listed under Real Estate industry.

DiamondRock Debt To Equity vs. Current Valuation

Enterprise Value is a firm valuation proxy that approximates the current market value of a company. It is typically used to determine the takeover or merger price of a firm. Unlike Market Cap, this measure takes into account the entire liquid asset, outstanding debt, and exotic equity instruments that the company has on its balance sheet. When a takeover occurs, the parent company will have to assume the target company's liabilities but will take possession of all cash and cash equivalents.

DiamondRock Hospitality

Enterprise Value

 = 

Market Cap + Debt

-

Cash

 = 
6.57 B
Enterprise Value can be a useful tool to compare companies with different capital structures. Long term liability and current cash or cash equivalents can have a huge impact on market valuation of a given company.
Debt to Equity is calculated by dividing the Total Debt of a company by its Equity. If the debt exceeds equity of a company, then the creditors have more stakes in a firm than the stockholders. In other words, Debt to Equity ratio provides analysts with insights about composition of both equity and debt, and its influence on the valuation of the company.

DiamondRock Hospitality

D/E

 = 

Total Debt

Total Equity

 = 
0.70 %
High Debt to Equity ratio typically indicates that a firm has been borrowing aggressively to finance its growth and as a result may experience a burden of additional interest expense. This may reduce earnings or future growth. On the other hand a small D/E ratio may indicate that a company is not taking enough advantage from financial leverage. Debt to Equity ratio measures how the company is leveraging borrowing against the capital invested by the owners.

DiamondRock Debt To Equity Comparison

DiamondRock Hospitality is currently under evaluation in debt to equity category among its peers.

DiamondRock Hospitality Profitability Projections

The most important aspect of a successful company is its ability to generate a profit. For investors in DiamondRock Hospitality, profitability is also one of the essential criteria for including it into their portfolios because, without profit, DiamondRock Hospitality will eventually generate negative long term returns. The profitability progress is the general direction of DiamondRock Hospitality's change in net profit over the period of time. It can combine multiple indicators of DiamondRock Hospitality, where stable trends show no significant progress. An accelerating trend is seen as positive, while a decreasing one is unfavorable. A rising trend means that profits are rising, and operational efficiency may be rising as well. A decreasing trend is a sign of poor performance and may indicate upcoming losses.
DiamondRock Hospitality Company is a self-advised real estate investment trust that is an owner of a leading portfolio of geographically diversified hotels concentrated in top gateway markets and destination resort locations. The Company has strategically positioned its hotels to be operated both under leading global brand families as well as unique boutique hotels in the lifestyle segment. DiamondRock Hospitality operates under REITHotel Motel classification in the United States and is traded on New York Stock Exchange. It employs 31 people.

DiamondRock Profitability Driver Comparison

Profitability drivers are factors that can directly affect your investment outlook on DiamondRock Hospitality. Investors often realize that things won't turn out the way they predict. There are maybe way too many unforeseen events and contingencies during the holding period of DiamondRock Hospitality position where the market behavior may be hard to predict, tax policy changes, gold or oil price hikes, calamities change, and many others. The question is, are you prepared for these unexpected events? Although some of these situations are obviously beyond your control, you can still follow the important profit indicators to know where you should focus on when things like this occur. Below are some of the DiamondRock Hospitality's important profitability drivers and their relationship over time.

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Other Information on Investing in DiamondRock Preferred Stock

To fully project DiamondRock Hospitality's future profitability, investors should examine all historical financial statements. These statements provide investors with a comprehensive snapshot of the financial position of DiamondRock Hospitality at a specified time, usually calculated after every quarter, six months, or one year. Three primary documents fall into the category of financial statements. These documents include DiamondRock Hospitality's income statement, its balance sheet, and the statement of cash flows.
Potential DiamondRock Hospitality investors and stakeholders can use historical trends found within financial statements to determine how well the company is positioned for the future. Although DiamondRock Hospitality investors may work on each financial statement separately, they are all related. The changes in DiamondRock Hospitality's assets and liabilities, for example, are also reflected in the revenues and expenses that we see on DiamondRock Hospitality's income statement, which results in the company's gains or losses. Cash flows can provide more information regarding cash listed on a balance sheet but not equivalent to net income shown on the income statement. Please read more on our technical analysis and fundamental analysis pages.