Choice Hotels Valuation
| CZH Stock | EUR 142.00 1.00 0.71% |
At this time, the firm appears to be undervalued. Choice Hotels Intern shows a prevailing Real Value of €157.45 per share. The current price of the firm is €142.0. Our model approximates the value of Choice Hotels Intern from analyzing the firm fundamentals such as Return On Equity of 1.58, current valuation of 7.07 B, and Profit Margin of 0.24 % as well as examining its technical indicators and probability of bankruptcy.
Undervalued
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.
The fair value of the Choice stock is determined by what a typical buyer is willing to pay for full or partial control of Choice Hotels International. 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 142.0 | Real 157.45 | Hype 142.0 | Naive 141.19 |
The real value of Choice Stock, also known as its intrinsic value, is the underlying worth of Choice Hotels Intern Company, which is reflected in its stock price. It is based on Choice Hotels' financial performance, growth prospects, management team, or industry conditions. The intrinsic value of Choice Hotels' stock can be calculated using various methods such as discounted cash flow analysis, price-to-earnings ratio, or price-to-book ratio. That value may differ from its current market price, which is determined by supply and demand factors such as investor sentiment, market trends, or news.
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: Choice Hotels Total Value Analysis
Choice Hotels International is currently estimated to have takeover price of 7.07 B with market capitalization of 6 B, debt of 1.2 B, and cash on hands of 31.81 M. Please note that takeover price may be misleading and is a subject to mistakes in financial statements. We encourage investors to thoroughly investigate all of the Choice Hotels fundamentals before making investing decisions based on enterprise value of the company| Takeover Price | Market Cap | Debt Obligations | Cash |
7.07 B | 6 B | 1.2 B | 31.81 M |
Choice Hotels Investor Information
About 44.0% of the company shares are held by company insiders. The company has Price/Earnings To Growth (PEG) ratio of 1.1. Choice Hotels Intern recorded earning per share (EPS) of 5.64. The entity last dividend was issued on the 30th of December 2022. Based on the key indicators related to Choice Hotels' liquidity, profitability, solvency, and operating efficiency, Choice Hotels International is not in a good financial situation at the moment. It has a very high risk of going through financial straits in December.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 66.69 percent. This implies that the Company is making €0.67 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 53.3 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. Consequently, these institutions are subject to different rules and regulations than regular investors in Choice Hotels. Please watch out for any change in the institutional holdings of Choice Hotels Intern as this could mean something significant has changed or is about to change at the company. Also note that nearly one million two hundred nine thousand eight hundred ninety-two invesors are currently shorting Choice Hotels expressing very little confidence in its future performance.Choice Hotels Profitability Analysis
The company reported the revenue of 1.4 B. Net Income was 332.15 M with profit before overhead, payroll, taxes, and interest of 700.05 M.Please note that valuation analysis is one of the essential comprehensive assessments in business. It evaluates Choice Hotels' worth, which you can determine by considering its current assets, liabilities and future cash flows. The investors' valuation analysis is an important metric that will give you a perspective on different companies. It helps you know the worth of the potential investment in Choice Hotels and how it compares across the competition.
About Choice Hotels Valuation
The stock valuation mechanism determines Choice Hotels' current worth on a weekly basis. Our 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.Choice Hotels International, Inc., together with its subsidiaries, operates as a hotel franchisor worldwide. The company was founded in 19 and is based in Rockville, Maryland. CHOICE HOTELS operates under Lodging classification in Germany and is traded on Frankfurt Stock Exchange. It employs 1882 people.
8 Steps to conduct Choice Hotels' Valuation Analysis
Company's valuation is the process of determining the worth of any company in monetary terms. It estimates Choice Hotels' potential worth based on factors such as financial performance, market conditions, growth prospects, and overall economic environment. The result of company valuation is a single number representing a Company's current market value. This value can be used as a benchmark for various financial transactions such as mergers and acquisitions, initial public offerings (IPOs), or private equity investments. To conduct Choice Hotels' valuation analysis, follow these 8 steps:- Gather financial information: Obtain Choice Hotels' financial statements, including balance sheets, income statements, and cash flow statements.
- Determine Choice Hotels' revenue streams: Identify Choice Hotels' primary sources of revenue, including products or services offered, target markets, and pricing strategies.
- Analyze market data: Research Choice Hotels' industry and market trends, including the size of the market, growth rate, and competition.
- Establish Choice Hotels' growth potential: Evaluate Choice Hotels' management, business model, and growth potential.
- Determine Choice Hotels' financial performance: Analyze its financial statements to assess its historical performance and future potential.
- Choose a valuation method: Consider the Company's specific circumstances and choose an appropriate valuation method, such as the discounted cash flow (DCF) or comparable analysis method.
- Calculate the value: Apply the chosen valuation method to the financial information and market data to calculate Choice Hotels' estimated value.
- Review and adjust: Review the results and make necessary adjustments, considering any relevant factors that may have been missed or overlooked.
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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