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Choice Hotels International, Inc (CHH) Fair Value & Analysis

Consumer Cyclical · US · Market cap $5.1B

CH Choice Hotels International, Inc logo Choice Hotels International, Inc CHH · US
Price$106.66
Fair Value$62.55
Upside-41.4%
Quality57/100
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Mixed Growth
Highly profitable · 35.0% net margin
High debt · generates free cash flow
1.05% dividend yield
Mixed vs. peers (6/15)
Wide moat 82/100
Evidence: High Range $43.20 – $123.24 Share as image

Fair value as of: Jul 17, 2026

From 26 valuation models · updated 24 days ago

Fair value updated Jul 17, 2026, revised from $63.04 to $62.55 (−0.8%) since Jul 15, 2026. Share price +0.3% over the past month.

A solid business, but screening 41% overvalued on our models.

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 (57/100) and above fair value, neither a clear bargain nor a standout compounder.
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Price vs Fair Value (5 years)

$153.56 $83.69 Fair Value $62.55 May 2021 Aug 2026

White line = price, green steps = our fair value per fiscal year, dashed = 300-day average. As of Jul 17, 2026.

How to read this chart

60‑month range $83.69 – $153.56 · fair‑value band $43.20 – $123.24 · the $106.66 price screens above the $62.55 fair value. Green steps = our fair value per fiscal year (point-in-time, no hindsight). Dashed = 300-day average. As of Jul 17, 2026.

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Analysis

Choice Hotels International, Inc (CHH) currently trades at $106.66, while our model-based Fair Value estimate is $62.55, implying the stock looks roughly 41.4% overvalued today. The Quality Score stands at 57/100 (solid quality), in the Consumer Cyclical sector. Bear case: priced above our estimate, the market already discounts strong expectations. Bull case: above-average quality can justify a premium, the entry price still matters most (evidence: 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 Jul 17, 2026

Our scenario range runs from $43.20 (bear case) to $123.24 (bull case); at $106.66, 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 21% below its 52-week high and 28% above its 52-week low, currently above its 200-day average. For context, the median of 10 Consumer Cyclical peers we cover trades at -62% fair-value upside, at -41%, CHH screens cheaper than that median.

Fair Value models

Each model estimates fair value its own way; the Fair Value above is the evidence-weighted 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.

Model BearBaseBull Evidence
Highest evidence
Growth DCF $4.53 $25.36 80
Residual Income $25.26 $51.17 $1,765 76
Rev-Margin DCF $5.91 $26.94 74
All 26 models by family
DCF Models
FCF DCF $6.57 $32.42 38
Owner Earnings $28.06 $67.22 $126.09 31
5Y Revenue Exit $5.96 $28.98 39
5Y EBITDA Exit $28.27 $82.60 $147.52 41
5Y P/E Exit $47.11 $118.51 $195.42 38
10Y Revenue Exit $3.71 $26.10 36
10Y EBITDA Exit $13.49 $56.26 $116.11 37
10Y P/E Exit $25.32 $80.88 $152.47 35
Earnings-Based
Graham-Dodd $55.29 $188.27 $252.54 54
Lynch FV $43.20 $61.72 $80.23 50
PEG = 1.0 $43.20 $61.72 $80.23 46
EPV $32.26 $43.81 $53.78 59
Dividend Discount
Gordon GGM $10.32 $20.57 $31.15 70
DDM Multi-Stage $10.32 $17.48 $21.71 61
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 53
EV/EBITDA $60.54 $94.35 $128.17 54
EV/Revenue $1.21 $13.84 43
Asset-Based
NCAV (Graham) $1.99 $2.67 $3.98 50
Growth DCF
Growth DCF $4.53 $25.36 80
Rev-Margin DCF $5.91 $26.94 74
Economic Profit
Residual Income $25.26 $51.17 $1,765 76
ROIC Compounder $37.68 $58.68 $83.64 72
Growth Earnings
Growth-Adj P/E $113.92 $162.75 $211.57 68

Widest divergence: Growth Earnings ($162.75) versus Asset-Based ($2.67). Highest evidence: Growth DCF (80).

Key figures & financial health

Revenue (TTM) $988M
Revenue growth (YoY) +3.5%
Net margin 35.0%
Return on equity 94.1%
Free cash flow $125M FY2025
P/E ratio 15.0
More key figures
Operating margin 27.8%
EPS (TTM) $7.40
Dividend yield 1.1%
EPS growth (YoY) -53.2%
Net debt $2.1B FY2025

Figures from reported company fundamentals · as of Jul 17, 2026. TTM = trailing twelve months.

Quality Score breakdown

Overall quality 57/100

Of which business quality 52 · Market factors (momentum, volatility) 46

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 68
Calm price path (market factor)
Momentum 40
Price trend over the last 3–12 months (market factor)
52W Momentum 31
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.

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. growth/yr (3Y)
+4.4%
Avg. growth/yr (5Y)
+15.6%
Avg. growth/yr (29Y)
+4.6%
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

CHH screens 41% 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 · 170 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 57 · Above median
Fair Value upside −41% · 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) 1.1% · Below median
Debt / equity 10.52× · Higher than 75% of peers

Valuation Multiples vs Lodging median · lower = cheaper

P/E (TTM) 15.0× · Cheaper than median
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

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.

VALUE 0 · sector 1
FUTURE 18 · sector 18
PAST 100 · sector 11
HEALTH 0 · sector 91
DIVIDEND 21 · sector 23

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

Insider activity: 44/100

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

ESG scores are not available for this stock yet. Values and ESG data are contextual and can differ between providers.

Similar stocks

10 more Lodging stocks, each showing price versus our Fair Value estimate (as of Jul 17, 2026).

Stock Price Fair Value vs Fair Value
Marriott International, Inc MAR $369.05 $135.64 -63%
Hilton Worldwide Holdings HLT $328.48 $123.67 -62%
InterContinental Hotels Group IHG $159.87 $85.18 -47%
Hyatt Hotels Corporation H $191.00 $47.69 -75%
H World Group HTHT $42.67 $47.55 +11%
Accor SA AC €47.25 €39.26 -17%
The Indian Hotels Company INDHOTEL ₹743.20 ₹260.68 -65%
Wyndham Hotels & Resorts, Inc WH $78.54 $24.02 -69%
Hanjin Kal, 180640 113,500 KRW 36,890 KRW -67%
Jabal Omar Development Company 4250 16.00 SAR 11.64 SAR -27%

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Frequently asked questions

Is Choice Hotels International, Inc (CHH) overvalued or undervalued?
As of Jul 17, 2026, our model estimates a fair value of $62.55 versus a price of $106.66, about −41% (overvalued).
What is the fair value of CHH?
Our model-based fair value for Choice Hotels International, Inc is $62.55 (as of Jul 17, 2026), built from audited fundamentals. The current price is $106.66.
What is the quality score of CHH?
Choice Hotels International, Inc has a Quality Score of 57/100. 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 Jul 17, 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 1.04% relative to its recent price (as of Jul 17, 2026).

How we calculate Fair Value

Each company is valued through a stack of independent intrinsic-value models (DCF variants, residual-income, multiples and more), blended into one family-balanced consensus and weighted by how much trustworthy data backs it. A separate quality layer scores the fundamentals. Every input is real reported data, nothing guessed.

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