Diamondrock Hospitality Company (DRH) fair value: what the stock is really worth
As of Nov 9, 2026: fair value (intrinsic value) of Diamondrock Hospitality Company stock $8.71, price $14.36, that is 39.3% below the price, quality 64 out of 100. Rating: strongly overvalued. Calculated from audited financials with 16 of our 26 valuation models and 37 quality factors, updated daily.
69 individual criteria per stock, every one traceableSee the method →
Price vs Fair Value
White line = price, green steps = our fair value per fiscal year. As of Nov 6, 2026.
How to read this chart
60‑month range $6.03 – $14.63 · fair‑value band $6.36 – $12.81 · the $14.36 price screens above the $8.71 fair value. Green steps = our fair value per fiscal year (point-in-time, no hindsight). 1 fiscal year is left out: there the valuation rested on only a fraction of the usual models. As of Nov 6, 2026.
Follow Diamondrock Hospitality Company Common Stock in your weekly email
Every Wednesday you see whether Diamondrock Hospitality Company Common Stock is on track or worth a review, plus price against fair value. Free, up to 3 stocks.
We send you a confirmation link. Unsubscribe with one click.
DiamondRock Hospitality Company is a self-advised real estate investment trust that owns a leading portfolio of geographically diversified hotels concentrated in leisure destinations and top gateway markets.
Show moreShow less
The Company currently owns 34 premium quality hotels and resorts with approximately 9,400 rooms. The Company has strategically positioned its portfolio to be operated both under leading global brand families as well as independent boutique hotels in the lifestyle segment.
DiamondRock Hospitality Company was established on May 26 2004 and is based in Bethesda, United States.
Stock analysis
Diamondrock Hospitality Company (DRH) currently trades at $14.36, while our model-based Fair Value estimate is $8.71, 39% below the price, so the stock looks overvalued today.
Show more
Valuation
Bull case: the DCF Models group reads highest at a median of $12.61 per share, and 3 of the 16 models we run sit above the $14.36 price.
Bear case: the Asset-Based group reads lowest at $4.68, and 13 of the 16 models stay below the price. Data coverage for this calculation is high.
Scenario range: $6.36 (bear) to $12.81 (bull), the price of $14.36 sits above it. Bear and bull are the same models on cautious and optimistic assumptions, a range, not a price target.
Quality & growth
The Quality Score stands at 64/100 (solid quality), in the Real Estate sector.
Mixed Growth: Revenue is growing, but margins or cash flow do not fully confirm the trend.
Diamondrock Hospitality Company Common Stock reported revenue of $1.1B in FY2025 versus $567M in FY2021, a compound +18.6%/yr. Reported net income was $101M in FY2025.
Key figures
Market cap $3.0B Mid · P/E ratio 19.1 · P/S ratio 2.57 · EPS (TTM) $0.7500 · Dividend yield 2.6% · Net margin 14.3% · Return on equity 10.6% · Return on assets (EBIT) 4.4% (5-year average).
Competitive moat
Our AI-assisted moat analysis scores the competitive advantage at 47 out of 100 (medium confidence).
What moves the price
The share trades about 2% below its 52-week high and 74% above its 52-week low, currently above its 200-day average.
For context, the median of 10 Real Estate peers we cover trades at −25% fair-value upside, at −39%, DRH screens richer than that median.
Fair Value models
Bear$6.36Fair Value $8.71Bull$12.81
Price $14.36 · Downside -39.3%
Model ⓘEach model values the company its own way (discounted cash flow, earnings, assets, dividends). The fair value above starts from their evidence-weighted blend, not from a single model. In cyclical trough or peak years, after dilution or a stock split it is adjusted afterwards, so it can sit above or below the models. Based on fiscal year 2025 figures (about 10 months old). Earnings retained since then ($0.3269 per share) are deliberately not added.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. If a model's bull case is above four times its base value, the table shows that limit with a > sign (like the overall Bull above): beyond it no assumption holds.Coverage ⓘCoverage = how well-backed THIS model's estimate is for this stock (0–100): how complete and reliable its input data are, and how well the model fits the company. The final Fair Value is an evidence-weighted blend, so better-evidenced models count more. Green ≥70, amber 50–69, grey below 50.
In the last 6 months, 2 officers or directors sold shares worth $446,800 and none bought.
SaleKathleen MerrillDirector20,000 shares at $11.88$237,600Jun 12, 2026
SaleMichael A. HartmeierDirector20,000 shares at $10.46$209,200May 13, 2026
SaleSteve SpiertoSVP, Chief Accounting Officer4,000 shares at $9.93$39,720Mar 3, 2026
Plan buyStephanie LeporiDirector431 shares at $10.27$4,421Jul 14, 2026
Sales are often planned (taxes, diversification, 10b5-1 plans). Purchases with their own money are seen as the stronger sign. For information only: not part of the quality score or Fair Value.
Growth Quality ⓘGrowth is valuable only when reinvestment earns attractive returns (Aswath Damodaran): sustainable growth depends on return on capital, reinvestment and efficiency. Basis: total company revenue over the periods shown on the cards (3Y/5Y/all years), not per share, so a merger can show up as a growth jump; per-share earnings growth is in the value-creation card.89/100
Revenue is growing, but margins or cash flow do not fully confirm the trend.
Revenue growth 1 year
−0.8%
Revenue growth 3 years ⓘ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. Per-share growth (which does include buybacks) is in the value-creation card.
+3.8%
Revenue growth 5 years ⓘ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. Per-share growth (which does include buybacks) is in the value-creation card.
+30.2%
Start year 2020 (pandemic). Over 10 years: +1.9% a year
Revenue growth 21 years ⓘ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. Per-share growth (which does include buybacks) is in the value-creation card.
+27.3%
’14
’15
’16
’17
’18
’19
’20
’21
’22
’23
’24
’25
What shareholders gained per year (last 5 years) ⓘWhat the business itself delivers per year: earnings growth per share plus the dividend yield. This is what you get IF the market keeps valuing the stock the same way: it contains no assumption about the market changing its mind. Computed per share, so buybacks count and a merger does not pass as growth. For a company that pays no dividend it is pure earnings growth per share. Period: earnings growth per share as CAGR over the last 5 reported fiscal years (annual statements), plus the current dividend yield. The start value is the median of the three years around the start, so a single crisis year (a pandemic or a write-down) does not distort the rate.
−9.1%
Earnings growth per share plus dividend.
Earnings per share, growth per year−11.7%
Dividend (yield on the price)2.6%
Pace: 5 vs 10 years ⓘTwo data points, not a trend model: earnings growth per share over the last 5 fiscal years against the last 10. Labelled "steady" when both rates are within 3 percentage points of each other, otherwise picking up or flattening. Shown only when ten years of history exist.−11.7% vs −1.5%, slowing
Profit margin 2020 to 2025 ⓘOperating margin then vs now, from reported annual statements. A falling margin after a boom year is the classic peak-earnings signal: the growth rate then leans on an inflated base.−67% → 14%
Pace: the 5-year rate starts in 2020 (pandemic)
Growth Forecast
A lot of optimism in the price
The price assumes less growth than the company has delivered so far and more than analysts expect.
What the price assumes ⓘThis turns our valuation around: instead of asking what the share is worth, it asks what growth the current price requires. It uses the cash the company keeps after all spending (free cash flow), the same discount rate as our models, five years of growth, then slowing evenly to 2 % a year by year ten. Compared with the analysts' sales forecasts extended to the same five years (at least three analysts, for context only, it does not enter the Fair Value): within 3 percentage points counts as "in line" (amber), below that little optimism (green), above that a lot of optimism (red).
+14.2%
Yearly growth needed for the next five years to justify today's price.
What forecasts expect ⓘAnalysts publish sales forecasts for the next two fiscal years. For the years after that, growth slows evenly to 2 % a year by year ten (2 % is the long-run rate our models use). Projected years are marked as such.
+2.5%
Yearly sales growth analysts expect, extended to five years.
After inflation (USA: IMF forecast 2.4% a year to 2030, 3.1% from 2016 to 2025) that is about +11.6% a year for the price and +0.1% for the forecasts.
News mood ⓘNews mood, the average tone of recent news (96 articles), rated against how stocks are usually covered. 🚀 Hype = unusually upbeat · 🙂 Positive = above average · 😐 Neutral = typical · 🙁 Negative = below average · 😨 Very negative = unusually downbeat. It reflects the tone of coverage, not our valuation.Hype
Recent news coverage is unusually upbeat, far more positive than stocks are typically covered.
AI conclusion: Targeted acquisitions add in-place cash flow and asset-management upside, yet limited differentiation and cyclical exposure remain the core constraints on sustainable quality.
Main risk: Sector-wide pressures on hotel demand would directly cut occupancy and room rates across the owned portfolio and reduce stabilized yields.
DiamondRock just bought a 79-room luxury resort in a supply-constrained Delaware beach market with cash on hand. The deal brings in-place cash flow plus room for asset management and off-season improvements to raise the stabilized yield. Our models currently see the shares as overvalued. Will those operational gains compound across the portfolio or get offset by sector-wide pressures on hotel demand?
Compare Diamondrock Hospitality Company Common Stock with another stock
Price, fair value, quality and upside side by side.
Free, no sign-up
Peer Groupⓘ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.REIT - Hotel & Motel · 30 stocks
Beats the industry median on 5/15 measures
Overall it trails its industry peers.
Valuation
Quality Score64 · Top 25%
Fair Value upside−39.3% · Bottom 25%
Profitability
Return on equity (12 months)10.6% · Top 25%
Return on assets3.4% · Below median
Net margin (12 months)14.3% · Above median
Operating margin (12 months)17.2% · Below median
Growth and dividend
Revenue growth (quarter YoY)4.3% · Above median
Dividend yield (12 months)2.6% · Below median
Balance sheet
Debt / equity0.76× · Above median
Valuation Multiplesvs REIT - Hotel & Motel median · lower = cheaper
For bloggers, editors and developers: paste this into your site or blog (a “Custom HTML” block in WordPress), it shows the current fair value and links back here. Free, plain HTML, and welcome. Full data streams (CSV/JSON) at /developers.
Cite: Fair Value Calculator (2026). "Diamondrock Hospitality Company Common Stock Fair Value". https://www.fairvalue-calculator.com/stock/DRH
Frequently asked questions
Is Diamondrock Hospitality Company (DRH) overvalued or undervalued?
As of Nov 6, 2026, our model estimates a fair value of $8.71 versus a price of $14.36, about 39% lower (overvalued).
What is the fair value of DRH?
Our model-based fair value for Diamondrock Hospitality Company is $8.71 (as of Nov 6, 2026), built from audited fundamentals. The current price: $14.36.
What is the quality score of DRH?
Diamondrock Hospitality Company has a Quality Score of 64/100. 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 price target for Diamondrock Hospitality Company (DRH)?
Our model-based price target is the fair value of $8.71 (as of Nov 6, 2026) from 16 valuation models. Cautious scenario $6.36, optimistic scenario $12.81. It is a calculation from audited fundamentals, not an analyst target.
What is the Diamondrock Hospitality Company Common Stock stock forecast for 2026?
Our models put fair value at $8.71, about 39% lower versus a price of $14.36 (overvalued). Cautious scenario $6.36, optimistic scenario $12.81. The calculation is refreshed regularly with new filings.
What is the revenue of Diamondrock Hospitality Company (DRH)?
Diamondrock Hospitality Company reported trailing-twelve-month revenue of about $1.1B (latest available figure, as of Nov 6, 2026).
Does Diamondrock Hospitality Company Common Stock pay a dividend?
Diamondrock Hospitality Company currently shows a dividend yield of 2.58% relative to its recent price (as of Nov 6, 2026).
How much is the dividend of Diamondrock Hospitality Company (DRH) and when is the ex-dividend date?
Diamondrock Hospitality Company pays a dividend of $0.37 per share a year, a dividend yield of 2.6%. The last ex-dividend date was Sep 30, 2026. A dividend has been paid every year since 2022. The payout ratio is 49.3% of earnings. Free cash flow covers the dividend 2.14 times. Our assessment: Well covered. A low payout and the dividend is fully funded by free cash flow, a comfortable, sustainable dividend.
What growth is priced into Diamondrock Hospitality Company (DRH)?
For today's price to be fair in a discounted-cash-flow model, Diamondrock Hospitality Company would have to grow free cash flow by +14.2 % per year for five years (discount rate 9.9 %, then slowing evenly to 2 % perpetual growth by year ten). Over the last 5 years revenue grew +30.2 % per year. As of Nov 6, 2026.
What discount rate (WACC) does the fair value of DRH use?
Our models discount Diamondrock Hospitality Company at 9.9 %: a base by market capitalisation (mid), damped by beta 1.06, country premium for USA. The same rate applies in all 26 models.
What is a reverse DCF?
A reverse DCF turns the usual calculation around. Instead of deriving a value from assumptions, it takes today's price as given and asks: what free-cash-flow growth would a company have to deliver for exactly this price to be fair? The result is not a forecast but the expectation already priced in. For Diamondrock Hospitality Company that is +14.2 % per year for five years, then slowing evenly to 2 % by year ten, using the same discount rate (9.9 %) and the same formula as our fair value.
How much growth has Diamondrock Hospitality Company (DRH) delivered so far?
Over the past 5 years revenue at Diamondrock Hospitality Company grew +30.2 % a year. The price currently implies free-cash-flow growth of +14.2 % per year. Comparing the two shows how much confidence is in the price: if it demands more than has been delivered, the business has to accelerate for the maths to work.
How fast is the sector of Diamondrock Hospitality Company (DRH) growing?
The median revenue growth in the sector is +2.7 % a year. That is the yardstick for the growth priced into Diamondrock Hospitality Company (+14.2 % per year): it shows whether the expectation is within the usual range or beyond it.
What is the free cash flow yield of Diamondrock Hospitality Company (DRH)?
The free-cash-flow yield on the price is 5.48 %: that much free cash flow Diamondrock Hospitality Company produces per unit of market value. When it exceeds the discount rate of our models (9.9 %), the business already earns more than its cost of capital demands, and the price needs little additional growth.
What is the intrinsic value of Diamondrock Hospitality Company (DRH)?
Intrinsic value and fair value mean the same thing: what the business is worth on its numbers, independent of the share price. For Diamondrock Hospitality Company it is $8.71 per share (as of Nov 6, 2026), against a price of $14.36. It is the blended result of 16 valuation models in 6 families (DCF Models, Dividend Discount, Multiples, Asset-Based, Growth DCF, Economic Profit).
Is Diamondrock Hospitality Company Common Stock stock overvalued or undervalued in 2026?
As of Nov 6, 2026, DRH trades above its calculated fair value: price $14.36, fair value $8.71, a gap of about −39% (overvalued). The calculation is refreshed with each new quarterly report, so the verdict can change during the year.
Is fair value the same as the market price of DRH?
No. The price is what the market pays today ($14.36); the fair value is what the company's own numbers justify ($8.71). For Diamondrock Hospitality Company the two are $5.65 per share apart. That gap is exactly why we show both numbers side by side.
How much is Diamondrock Hospitality Company Common Stock worth?
The market values Diamondrock Hospitality Company at about $3.0B (market capitalisation, as of Nov 6, 2026). Per share that is $14.36; our models calculate a fair value of $8.71 per share.
What do the bullish and bearish scenarios say about DRH?
Our models span a range for Diamondrock Hospitality Company: cautious scenario $6.36, base $8.71, optimistic $12.81 per share (as of Nov 6, 2026, price $14.36). The range comes from different growth and margin assumptions, not from analyst opinions.
What is the P/E ratio of DRH?
Diamondrock Hospitality Company trades at a price-to-earnings ratio of 19.1 (as of Nov 6, 2026). A P/E on its own says little: it compares the price with ONE year of profit, while our fair value of $8.71 is built from several models across several years. Median P/E at fiscal year-end, 8 fiscal years (2016 to 2025), reported earnings, FY2017, FY2022, FY2024 ex one-offs: 20.8. Other multiples: PEG 2.5, P/B 2.0, P/S 2.6, EV/EBITDA 13.0.
What is the PEG ratio of DRH?
The PEG ratio of Diamondrock Hospitality Company is 2.52 (P/E divided by earnings growth, as of Nov 6, 2026). That is above 1, so the growth is already paid for in the price.
How solid is the balance sheet of Diamondrock Hospitality Company (DRH)?
Balance-sheet figures for Diamondrock Hospitality Company (as of Nov 6, 2026): return on equity 10.6%, debt of 0.76 per unit of equity. They feed the Quality Score of 64/100, which measures business quality independently of the share price.
How far is DRH from its 52-week high?
Diamondrock Hospitality Company trades at $14.36, about 2% below its 52-week high of $14.63 and 74% above the low of $8.25 (as of Nov 9, 2026). Distance from the high says nothing about value: that is what the fair value of $8.71 is for.
Which stocks are comparable to Diamondrock Hospitality Company Common Stock?
From the same area (Real Estate) we also value Host Hotels & Resorts, Inc, Ryman Hospitality Properties, Inc, Apple Hospitality REIT, Inc, COVH, among others. Each of them has its own fair-value calculation on this site using the same models, so the comparison is like for like.
Is Diamondrock Hospitality Company Common Stock stock attractive at the current price?
The data as of Nov 6, 2026: price $14.36, calculated fair value $8.71 (−39%), Quality Score 64/100, from 16 models. Whether that fits your horizon and risk tolerance is your call. We provide the calculation, not investment advice.
How is the fair value of DRH calculated?
We run Diamondrock Hospitality Company through 16 models from 6 families: DCF Models, Dividend Discount, Multiples, Asset-Based, Growth DCF, Economic Profit. Every model gets the same audited fundamentals; the fair value of $8.71 builds on their evidence-weighted average, with the spread shown as a cautious and an optimistic scenario.
Is it still worth investing in stocks now?
The global stock market currently sits 13.7% above its aggregate fair value. Diamondrock Hospitality Company itself currently trades above fair value. An expensive market is no reason to stay out and no reason to buy everything at once: keep a broad savings plan running, buy single stocks only with money you can do without, and hold part of your money liquid while the market is high. The full picture including sectors is on is it worth investing now.
What is the share price of Diamondrock Hospitality Company (DRH)?
The closing price on Nov 9, 2026 was $14.36. Our model-based fair value is $8.71, about 39% lower (overvalued). We carry closing prices from our data provider, not a live tick.
What should I pay attention to with Diamondrock Hospitality Company Common Stock right now?
The price sits above even our optimistic bull case ($12.81). The favourable scenario is already priced in. Solid but not exceptional quality (64/100) and above fair value, neither a clear bargain nor a standout compounder. A fairly wide model range ($6.36 to $12.81) leaves room in how you read the outcome. As a real-estate business, asset- and dividend-based methods carry more weight here than a standard DCF.
Where does the earnings growth of Diamondrock Hospitality Company (DRH) come from?
Earnings per share at Diamondrock Hospitality Company grew −5.3 % a year from 2014 to 2025. Broken into its drivers: revenue per share +1.8 %, EBIT margin +0.5 %, tax rate +0.8 %, residual (interest, one-offs) −8.1 %. The four rates multiply to the earnings growth rate, they do not add up. Start and end are three-year averages so a single exceptional year does not distort the result.
Key figures of Diamondrock Hospitality Company
How large is the market capitalisation of Diamondrock Hospitality Company (DRH)?
The market capitalisation of Diamondrock Hospitality Company is $3.0B. The stock-market value of the whole company: share price times number of shares. It is what the market asks for the entire business today.
What is the P/S ratio of Diamondrock Hospitality Company (DRH)?
The price-to-sales ratio of Diamondrock Hospitality Company is 2.57 (last twelve months). Price to sales: market value relative to yearly revenue. Useful when profit is thin or distorted.
What are the earnings per share of Diamondrock Hospitality Company (DRH)?
Earnings per share at Diamondrock Hospitality Company are $0.7500 (price ÷ EPS = P/E 19.1). Earnings per share over the last twelve months: total profit spread across every single share.
What is the dividend yield of Diamondrock Hospitality Company (DRH)?
The dividend yield of Diamondrock Hospitality Company is 2.6% (payout 49.3%). Yearly dividend relative to the share price. 3% pays 3 per 100 invested. Below: how much of profit is used for it.
What is the net margin of Diamondrock Hospitality Company (DRH)?
The net margin of Diamondrock Hospitality Company is 14.3% (last twelve months). How much of every unit of revenue ends up as profit. 10% means 10 cents of profit per dollar of sales.
What is the return on equity of Diamondrock Hospitality Company (DRH)?
The return on equity (ROE) of Diamondrock Hospitality Company is 10.6% (last twelve months). Profit relative to shareholders' equity, how efficiently the company works with its owners' money.
What is the EBIT return on assets of Diamondrock Hospitality Company (DRH)?
On an EBIT basis the return on assets of Diamondrock Hospitality Company is 4.4% (avg 5y). Operating profit (EBIT) relative to everything the company owns, as a multi-year average. It describes the business model rather than one good or bad year.
What is the operating margin of Diamondrock Hospitality Company (DRH)?
The operating margin of Diamondrock Hospitality Company is 17.2% (last twelve months). Profit from the core business (before interest and taxes) relative to revenue.
How fast is revenue growing at Diamondrock Hospitality Company (DRH)?
Revenue at Diamondrock Hospitality Company is growing +4.3% versus a year earlier (3y avg +3.8%). How much revenue grew versus a year earlier (YoY). The 3-year average next to it puts the single year in context.
How fast are earnings growing at Diamondrock Hospitality Company (DRH)?
Earnings per share at Diamondrock Hospitality Company are growing +63.7% versus a year earlier. How much earnings per share grew versus a year earlier.
How much net debt does Diamondrock Hospitality Company (DRH) carry?
The net debt of Diamondrock Hospitality Company is $1.1B (fiscal year 2025, ≈ 6.9 yrs of FCF). Debt minus cash on hand. The note shows how many years of free cash flow could in theory pay it off.
Free · no account needed
Watch Diamondrock Hospitality Company Common Stock in the live analysis
One click puts Diamondrock Hospitality Company Common Stock on your watchlist: fair value and trend at a glance, plus comparison, the diversification check and the 27,000+ stock screener.
Broad data
Nov 6, 2026