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Choice Hotels International Inc (CHH) Fair Value & Analysis

Consumer Cyclical · US · Market cap $5.1B · ISIN US1699051066

What is Choice Hotels International Inc really worth?

CH Choice Hotels International Inc logo Choice Hotels International Inc CHH · US
Price$99.40
Fair Value$61.72
Upside−37.9%
Quality58/100

A solid business, but trading 61% above our fair value of $61.72.

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Strengths

Highly profitable · 35.0% net margin
Wide moat 82/100

Risks

!Mixed Growth (revenue 5y +15.6 %/yr)
!High debt · generates free cash flow
!Mixed vs. peers (6/15)
!The models disagree: range $43.20 to $123.24
!Weak on future: 18 out of 100
!Weak on dividend: 23 out of 100

For context

·1.16% dividend yield
Evidence: High Range $43.20 – $123.24

Fair value as of: Aug 13, 2026

From 26 valuation models · updated 22 days ago

Fair value updated Aug 13, 2026, revised from $62.55 to $61.72 (−1.3%) since Jul 17, 2026. Share price −8.5% over the past month.

What runs behind every stock

69 individual criteria per stock, every one traceable See the method →

What matters now

  • The model range is unusually wide ($43.20 to $123.24). The outcome hinges heavily on assumptions, so read the point estimate with caution.
  • Solid but not exceptional quality (58/100) and above fair value, neither a clear bargain nor a standout compounder.

Price vs Fair Value (5 years)

$153.56 $83.69 Fair Value $61.72 Jun 2021 Sep 2026

White line = price, green steps = our fair value per fiscal year, dashed = 300-day average. As of Aug 13, 2026.

How to read this chart

60‑month range $83.69 – $153.56 · fair‑value band $43.20 – $123.24 · the $99.40 price screens above the $61.72 fair value. Green steps = our fair value per fiscal year (point-in-time, no hindsight). Dashed = 300-day average. As of Aug 13, 2026.

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Analysis

Choice Hotels International Inc (CHH) currently trades at $99.40, while our model-based Fair Value estimate is $61.72, implying the stock looks roughly 61.1% overvalued today. The Quality Score stands at 58/100 (solid quality), in the Consumer Cyclical sector. Bull case: the Growth Earnings group reads highest at a median of $162.75 per share, and 5 of the 26 models we run sit above the $99.40 price. Bear case: the Dividend Discount group reads lowest at $17.48, and 21 of the 26 models stay below the price. Evidence for this calculation is high.

Over the trailing twelve months, Choice Hotels International Inc generated revenue of $988M at a net margin of 35.0%. Revenue grew 3.5% year over year. It earns a return on equity of 94.1%. Net debt stands at $2.1B. Fundamentals as of Aug 13, 2026

Our scenario range runs from $43.20 (bear case) to $123.24 (bull case); at $99.40, the current price sits within that range. Bear and bull are the same models run on conservative and optimistic assumptions (margins, growth, valuation multiples), so a plausible valuation range, not a price target. The share trades about 27% below its 52-week high and 19% above its 52-week low, currently below its 200-day average. For context, the median of 10 Consumer Cyclical peers we cover trades at −61% fair-value upside, at −38%, CHH screens cheaper than that median.

Fair Value models

This estimate rests on fiscal year 2025 figures, and about 8 months have passed since. In that time the company retained roughly $4.23 per share, which is 6.9 % of the fair value. The fair value deliberately does not add this in: the models value reported figures, not a projection.

Each model estimates fair value its own way; the Fair Value above is the evidence-weighted, family-balanced blend. Evidence (0–100) measures how completely this model’s inputs are available: well-fed models carry more weight in the blend. The spread across models is intentional, each one stresses a different value driver; dividend models, for instance, come out structurally low when payout is small. Every input is real reported data, nothing guessed.

Model Bear Bear = the cautious scenario: the same model computed with conservative anchors (lower growth, margins and valuation multiples). Together with Bull it frames a plausible valuation range, not a price target.BaseBull Bull = the optimistic scenario: the same model computed with favourable anchors (higher growth, margins and valuation multiples). Together with Bear it frames a plausible valuation range, not a price target. Evidence
Highest evidence
FCF DCF best evidence $6.57 $32.42 77
Growth DCF $4.53 $25.36 75
EPV $32.26 $43.81 $53.78 74
All 26 models by family
DCF Models
FCF DCF best evidence $6.57 $32.42 77
Owner Earnings $28.06 $67.22 $126.09 72
5Y Revenue Exit $5.96 $28.98 69
5Y EBITDA Exit $28.27 $82.60 $147.52 71
5Y P/E Exit $47.11 $118.51 $195.42 68
10Y Revenue Exit $3.71 $26.10 64
10Y EBITDA Exit $13.49 $56.26 $116.11 62
10Y P/E Exit $25.32 $80.88 $152.47 59
Earnings-Based
Graham-Dodd $55.29 $188.27 $252.54 64
Lynch FV $43.20 $61.72 $80.23 61
PEG = 1.0 $43.20 $61.72 $80.23 57
EPV $32.26 $43.81 $53.78 74
Dividend Discount
Gordon GGM $10.32 $20.57 $31.15 67
DDM Multi-Stage $10.32 $17.48 $21.71 67
Multiples
P/E Multiple $134.17 $178.89 $223.62 63
P/S Multiple $31.59 $42.12 $52.65 58
P/B Multiple $11.95 $15.93 $19.92 55
EV/EBIT $93.54 $138.36 $183.17 65
EV/EBITDA $60.54 $94.35 $128.17 66
EV/Revenue $1.21 $13.84 50
Asset-Based
NCAV (Graham) $1.99 $2.67 $3.98 54
Growth DCF
Growth DCF $4.53 $25.36 75
Rev-Margin DCF $5.91 $26.94 69
Economic Profit
Residual Income $25.26 $51.17 $1,765 64
ROIC Compounder $37.68 $58.68 $83.64 70
Growth Earnings
Growth-Adj P/E $113.92 $162.75 $211.57 67

Widest divergence: Growth Earnings ($162.75) versus Asset-Based ($2.67). Highest evidence: FCF DCF (77).

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Key figures & financial health

P/E ratio 13.4
P/S ratio 3.11 P/E × margin
EPS (TTM) $7.40 price ÷ EPS = P/E 13.4
Dividend yield 1.2% payout 15.5%
Net margin 23.2% FY2025
Return on equity 94.1% TTM
More key figures
Profitability
Return on assets (EBIT) 18.9% avg 5y
Operating margin 27.8% TTM
Growth
Revenue (TTM) $988M TTM
Revenue growth (YoY) +3.5% 3y avg +4.4%
EPS growth (YoY) −53.2%
Balance sheet & cash flow
Free cash flow $125M FY2025
Net debt $2.1B FY2025 · ≈ 16.7 yrs of FCF

Figures from reported company fundamentals · as of Aug 13, 2026. TTM = trailing twelve months.

Quality Score breakdown

Overall quality 58/100

Of which business quality 52 · Market factors (momentum, volatility) 41

Profitability 69
Margins and returns on capital today
Quality Growth 38
Are margins and returns improving?
Cashflow 35
Earnings quality: real cash, not paper profit
Fin. Strength 28
Balance sheet, leverage, solvency risk
Investment 59
Disciplined investing over empire-building
Low Volatility 67
Calm price path (market factor)
Momentum 33
Price trend over the last 3–12 months (market factor)
52W Momentum 24
Distance to the 52-week high (market factor)
Net Issuance 97
Buybacks instead of dilution

Non-valuation factor families (profitability, growth, cashflow, financial strength, momentum …), each academically grounded. Valuation itself sits in the Fair Value and is deliberately excluded here to avoid double-counting.

All values are scores from 0 to 100 (100 = best against fixed, research-based bands), not percentages. The three market factors (momentum, 52-week proximity, low volatility) are displayed but carry zero weight in the headline number: market sentiment is not a business property.

About the company

Choice Hotels International, Inc., together with its subsidiaries, operates as a hotel franchisor in the United States and internationally. It operates through Hotel Franchising & Management and Corporate & Other segments.

Full company description

Choice Hotels International, Inc., together with its subsidiaries, operates as a hotel franchisor in the United States and internationally. It operates through Hotel Franchising & Management and Corporate & Other segments. The company franchises lodging properties under the Comfort Inn, Comfort Suites, Quality, Clarion, Clarion Pointe, Sleep Inn, Ascend Collection, Econo Lodge, Rodeway Inn, MainStay Suites, Suburban Studios, WoodSpring Suites, Everhome Suites, Cambria Hotels, Radisson Blu, Radisson RED, Radisson, Park Plaza, Country Inn & Suites by Radisson, Radisson Inn & Suites, Park Inn by Radisson, Radisson Individuals, and Radisson Collection brand names. The company was founded in 1939 and is headquartered in North Bethesda, Maryland.

Company description, as reported by the company or data provider.

Revenue & earnings trend

FY2021 – FY2025 · reported fiscal years

Choice Hotels International Inc reported revenue of $1.6B in FY2025 versus $1.1B in FY2021, a compound +10.5%/yr. Reported net income was $370M in FY2025, compounding +6.4%/yr from FY2021.

Growth Quality 86/100
Revenue is growing, but margins or cash flow do not fully confirm the trend.
Latest Revenue (FY 2025)
$1.6B
Latest YoY
+0.8%
Avg. revenue growth/yr (3Y) Measures the company's TOTAL revenue from reported annual statements: compound average growth per year (CAGR) from the fiscal year 3, 5 or N years back to the most recent comparable fiscal year. Not per share: buybacks do not change this number, and a merger can appear as a growth jump.
+4.4%
Avg. revenue growth/yr (5Y) Measures the company's TOTAL revenue from reported annual statements: compound average growth per year (CAGR) from the fiscal year 3, 5 or N years back to the most recent comparable fiscal year. Not per share: buybacks do not change this number, and a merger can appear as a growth jump.
+15.6%
Avg. revenue growth/yr (29Y) Measures the company's TOTAL revenue from reported annual statements: compound average growth per year (CAGR) from the fiscal year 3, 5 or N years back to the most recent comparable fiscal year. Not per share: buybacks do not change this number, and a merger can appear as a growth jump.
+4.6%
Value creation/yr (5Y) Earnings growth per share (CAGR 5 years, adjusted) plus dividend yield: value created per share and year.
+15.3% (14.1 + 1.2)
Revenue +10.5%/yr
FY21 $1.1B
FY22 $1.4B
FY23 $1.5B
FY24 $1.6B
FY25 $1.6B
Net income +6.4%/yr
FY21 $289M
FY22 $332M
FY23 $259M
FY24 $300M
FY25 $370M
Character of growth · EPS growth decomposed (2014-2025) +12.3 % p.a.
Revenue per share +9.3 %

of which total revenue +7.1 % · buybacks/dilution +2.0 %

EBIT margin +0.3 %
Tax rate +1.2 %
Residual (interest, one-offs) +1.2 %

Annual growth per factor. These are factors, not summands: multiplied they give the EPS growth rate, added they do not quite. Start and end points are 3-year averages (details on hover).

CHH screens 61% overvalued. Compare with Marriott International, Inc →

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Cite: Fair Value Calculator (2026). "Choice Hotels International Inc Fair Value". https://www.fairvalue-calculator.com/stock/CHH

Recent news

External third-party headlines (Yahoo Finance, Reuters and others), not an editorial selection.

Peer Group

Lodging · 165 stocks

How this stock ranks against its industry: the green marker is this stock, the band is the typical 25–75% peer range, and the tick is the median.

Quality Score 58 · Above median
Fair Value upside −38% · Below median
Return on equity (TTM) 94% · Top 25%
Return on assets 10% · Top 25%
Net margin (TTM) 35% · Top 25%
Operating margin (TTM) 28% · Top 25%
Revenue growth 4% · Below median
Dividend yield (TTM) 1.2% · Below median
Debt / equity 10.52× · Higher than 75% of peers

Valuation Multiples vs Lodging median · lower = cheaper

P/E (TTM) 13.4× · Cheaper than 75% of peers
P/B 27.94× · Pricier than 75% of peers
P/S (TTM) 5.13× · Pricier than 75% of peers
P/FCF 40.6× · Pricier than 75% of peers
EV/EBITDA 14.2× · Pricier than median
PEG 2.41× · Pricier than 75% of peers

Strength profile in five axes (Snowflake)

Five quick dimensions, each 0 to 100: VALUE (fair-value potential), FUTURE (revenue growth), PAST (return on equity), HEALTH (low debt), DIVIDEND (yield). Green = this stock, grey = typical sector peer.

VALUEFUTUREPASTHEALTHDIVIDEND
This stock
VALUEFUTUREPASTHEALTHDIVIDEND
Sector peers
VALUE0 · sector 0
FUTURE18 · sector 24
PAST100 · sector 12
HEALTH0 · sector 91
DIVIDEND23 · sector 26

VALUE 0: the price sits above our fair-value range.

Insider activity: 46/100

Values & ESG

Does this company touch areas you may want to avoid? The classification is inferred from sector and industry.

None of the checked exposures detected

Similar stocks

10 more Lodging stocks, each showing price versus our Fair Value estimate (as of Aug 13, 2026).

Stock Price Fair Value vs Fair Value
Marriott International, Inc MAR $341.76 $132.35 −61%
Hilton Worldwide Holdings HLT $314.35 $122.07 −61%
InterContinental Hotels Group IHG $161.82 $85.18 −47%
Hyatt Hotels Corporation H $178.37 $46.78 −74%
H World Group HTHT $41.25 $47.78 +16%
Accor SA AC €46.52 €36.87 −21%
The Indian Hotels Company INDHOTEL ₹723.35 ₹253.67 −65%
Wyndham Hotels & Resorts, Inc WH $74.02 $23.55 −68%
Hanjin Kal, 180640 139,100 KRW 36,890 KRW −73%
Jabal Omar Development Company 4250 18.88 SAR 11.64 SAR −38%

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Frequently asked questions

Is Choice Hotels International Inc (CHH) overvalued or undervalued?
As of Aug 13, 2026, our model estimates a fair value of $61.72 versus a price of $99.40, about −38% upside (overvalued).
What is the fair value of CHH?
Our model-based fair value for Choice Hotels International Inc is $61.72 (as of Aug 13, 2026), built from audited fundamentals. The current price: $99.40.
What is the quality score of CHH?
Choice Hotels International Inc has a Quality Score of 58/100. It measures business quality (profitability, growth, cash flow, balance-sheet strength, investment discipline, share issuance). Market factors such as price momentum and volatility do not enter the number; they are shown separately in the detail view.
What is the revenue of Choice Hotels International Inc (CHH)?
Choice Hotels International Inc reported trailing-twelve-month revenue of about $988M (latest available figure, as of Aug 13, 2026).
What is the net profit margin of CHH?
The net profit margin of Choice Hotels International Inc is about 35.0%, meaning it keeps roughly 35.0% of revenue as net income. Based on the latest reported figures.
Does Choice Hotels International Inc pay a dividend?
Choice Hotels International Inc currently shows a dividend yield of about 1.16% relative to its recent price (as of Aug 13, 2026).
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