Choice Hotels Valuation
| CHH Stock | USD 148.84 2.30 1.57% |
At this time, the firm appears to be fairly valued. Choice Hotels Intern shows a prevailing Real Value of $147.11 per share. The current price of the firm is $148.84. Our model approximates the value of Choice Hotels Intern from analyzing the firm fundamentals such as Current Valuation of 8.7 B, profit margin of 0.32 %, and Return On Equity of 0.88 as well as examining its technical indicators and probability of bankruptcy. Key fundamental drivers impacting Choice Hotels' valuation include:
Price Book 898.9504 | Enterprise Value 8.7 B | Enterprise Value Ebitda 17.9514 | Price Sales 8.8238 | Forward PE 21.0084 |
Fairly Valued
Today
Please note that Choice Hotels' price fluctuation is very steady at this time. Calculation of the real value of Choice Hotels Intern is based on 3 months time horizon. Increasing Choice Hotels' time horizon generally increases the accuracy of value calculation and significantly improves the predictive power of the methodology used.
Since Choice Hotels is currently traded on the exchange, buyers and sellers on that exchange determine the market value of Choice Stock. However, Choice Hotels' intrinsic value may or may not be the same as its current market price, in which case there is an opportunity to profit from the mispricing, assuming the market price will eventually merge with its intrinsic value. | Historical | Market 148.84 | Real 147.11 | Target 129.2 | Hype 145.68 | Naive 144.3 |
The intrinsic value of Choice Hotels' stock can be calculated using various methods such as discounted cash flow or dividend analysis. That value may differ from its market price, which is determined by factors such as investor sentiment, market trends, headlines, and other external factors that may influence Choice Hotels' stock price.
Estimating the potential upside or downside of Choice Hotels International helps investors to forecast how Choice stock's addition to their portfolios will impact the overall performance. We also use other valuation drivers to help us estimate the true value of Choice Hotels more accurately as focusing exclusively on Choice Hotels' fundamentals will not take into account other important factors: When choosing an evaluation method for Choice Hotels Intern, ensure it is appropriate for the firm given its current financial situation and market classification. If more than one evaluation category is relevant, we suggest using all methods to arrive at a better estimate.
Choice Hotels Cash |
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Choice Valuation Trend
Choice Hotels' real value analysis enables investors to forecast the earnings more efficiently. Using both Choice Hotels' enterprise value as well as its market capitalization is the best way to gauging the value of the company and is usually enough for investors to make market timing decisions.
Choice Revenue by Product
Choice Hotels Total Value Analysis
Choice Hotels International is currently forecasted to have company total value of 8.7 B with market capitalization of 6.87 B, debt of 1.68 B, and cash on hands of 41.57 M. Please note that company total value may be misleading and is a subject to accounting gimmicks. We encourage investors to carefully check all of the Choice Hotels fundamentals before making security assessment based on enterprise value of the company| Takeover Price | Market Cap | Debt Obligations | Cash |
8.7 B | 6.87 B | 1.68 B | 41.57 M |
Choice Hotels Investor Information
About 41.0% of the company shares are held by company insiders. The company has Price/Earnings To Growth (PEG) ratio of 1.59. Choice Hotels Intern recorded earning per share (EPS) of 5.25. The entity last dividend was issued on the 1st of October 2024. The firm had 2:1 split on the 24th of October 2005. Based on the key indicators related to Choice Hotels' liquidity, profitability, solvency, and operating efficiency, Choice Hotels International may be sliding down financialy. It has an above-average probability of going through some form of financial hardship next quarter.| Current Value | Last Year | Change From Last Year | 10 Year Trend | ||||||
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| Operating Profit Margin | 0.32 | 0.2429 |
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| Total Cash From Operating Activities | 173.2 M | 296.6 M |
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| Operating Income | 207.8 M | 375 M |
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Choice Hotels Asset Utilization
The asset utilization indicator refers to the revenue earned for every dollar of assets a company currently reports. Choice Hotels has an asset utilization ratio of 64.48 percent. This signifies that the Company is making $0.64 for each dollar of assets. An increasing asset utilization means that Choice Hotels International is more efficient with each dollar of assets it utilizes for everyday operations.Choice Hotels Ownership Allocation
Choice Hotels holds a total of 46.91 Million outstanding shares. Over half of Choice Hotels' outstanding shares are owned by other corporate entities. These other corporate entities are typically referred to as corporate investors that acquire positions in a given instrument to benefit from reduced trade commissions. Also note that nearly four million eight hundred twenty-two thousand seventy invesors are currently shorting Choice Hotels expressing very little confidence in its future performance.Choice Hotels Profitability Analysis
The company reported the last year's revenue of 1.54 B. Total Income to common stockholders was 258.51 M with profit before taxes, overhead, and interest of 700.05 M.Choice Hotels Past Distributions to stockholders
About Choice Hotels Valuation
An absolute valuation paradigm, as applied to Choice Stock, attempts to find the value of Choice Hotels Intern based on its fundamental and basic technical indicators. By analyzing Choice Hotels's financials, quarterly and monthly indicators, and their related drivers, such as dividends, operating cash flow, and various types of growth rates, we attempt to find the most accurate representation of Choice Hotels's intrinsic value. In some cases, mostly for established, large-cap companies, we also incorporate more traditional valuation methods such as dividend discount, discounted cash flow, or asset-based models. As compared to an absolute model, our relative valuation model uses a comparative analysis of Choice Hotels. We calculate exposure to Choice Hotels's market risk, different technical and fundamental indicators, and relevant financial multiples and ratios and then compare them to those of Choice Hotels's related companies.| Last Reported | Projected for Next Year | ||
| Gross Profit | 690.3 M | 346.3 M | |
| Pretax Profit Margin | 0.22 | 0.31 | |
| Operating Profit Margin | 0.24 | 0.32 | |
| Net Profit Margin | 0.17 | 0.21 | |
| Gross Profit Margin | 0.45 | 0.54 |
Choice Hotels Quarterly Retained Earnings |
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A single share of Choice Hotels represents a small ownership stake in the entity. As a stockholder of Choice, your percentage of company ownership is determined by dividing the number of shares you own by the total number of shares outstanding and then multiplying that amount by 100. Owning stock in a company generally confers both corporate voting rights and income from any dividends paid to the stock owner.
Choice Hotels Dividends Analysis For Valuation
As of now, Choice Hotels' Dividends Paid is decreasing as compared to previous years. The Choice Hotels' current Dividend Paid And Capex Coverage Ratio is estimated to increase to 3.36, while Dividend Yield is projected to decrease to 0.01. . As of now, Choice Hotels' Retained Earnings are increasing as compared to previous years. The Choice Hotels' current Retained Earnings Total Equity is estimated to increase to about 1.9 B, while Price Earnings Ratio is projected to decrease to 20.94.
| Last Reported | Projected for Next Year | ||
| Dividends Paid | 56.5 M | 73.3 M | |
| Dividend Yield | 0.01 | 0.01 | |
| Dividend Payout Ratio | 0.22 | 0.21 | |
| Dividend Paid And Capex Coverage Ratio | 1.70 | 3.36 |
There are various types of dividends Choice Hotels can pay to its shareholders, and the actual value of the dividend is determined on a per-share basis. It is to be paid equally to all of Choice shareholders on a specific date, known as the payable date. The cash dividend is the most common type of dividend payment - it is the payment of actual cash from Choice Hotels International directly to its shareholders. There are other types of dividends that companies can issue, such as stock dividends or asset dividends. When Choice pays a dividend, it has no impact on its enterprise value. It does, however, lowers the Equity Value of Choice Hotels by the value of the dividends paid out.
Choice Hotels Growth Indicators
Growth stocks usually refer to those companies expected to grow sales and earnings faster than the market average. Growth stocks typically don't pay dividends, often look expensive, and usually trading at a high P/E ratio. Nevertheless, such valuations could be relatively cheap if the company continues to grow, which will drive the share price up. However, since most investors are paying a high price for a growth stock, based on expectations, if those expectations are not fully realized, growth stocks can see dramatic declines.
| Common Stock Shares Outstanding | 50.7 M | |
| Quarterly Earnings Growth Y O Y | 0.227 | |
| Forward Price Earnings | 21.0084 |
Choice Hotels Current Valuation Indicators
Valuation refers to the process of determining the present value of Choice Hotels International and all of its assets. It can be calculated using a number of techniques. As many analysts who try to value Choice we look at many different elements of the entity such as Choice's management, its prospective future earnings, the current market value of the company's assets, as well as its capital structure formation.
Valuations are an essential part of business, for companies themselves, but also for investors. For companies, such as Choice Hotels, valuations can help measure their progress and success and can help them track their performance in the market compared to others. In addition, investors can use Choice Hotels' valuations to help determine the worth of potential investments. They can do this by using data and information made public by a company. Regardless of who the valuation is for, it essentially describes Choice Hotels' worth.Complementary Tools for Choice Stock analysis
When running Choice Hotels' price analysis, check to measure Choice Hotels' market volatility, profitability, liquidity, solvency, efficiency, growth potential, financial leverage, and other vital indicators. We have many different tools that can be utilized to determine how healthy Choice Hotels is operating at the current time. Most of Choice Hotels' value examination focuses on studying past and present price action to predict the probability of Choice Hotels' future price movements. You can analyze the entity against its peers and the financial market as a whole to determine factors that move Choice Hotels' price. Additionally, you may evaluate how the addition of Choice Hotels to your portfolios can decrease your overall portfolio volatility.
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