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PPHE Hotel Group (PPH) Fair Value & Analysis

Consumer Cyclical · GB · Market cap 679M GBX

PH PPHE Hotel Group PPH · LSE
Price£16.22
Fair Value£5.70
Upside-64.9%
Quality46/100
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Healthy Growth
Thin margins · 2.8% net margin
High debt · generates free cash flow
2.42% dividend yield
Trails peers (4/14)
Narrow moat 40/100
Evidence: Medium Range £4.37 – £8.66 Share as image

Fair value as of: Jul 12, 2026

From 23 valuation models · updated 26 days ago

Fair value updated Jul 12, 2026, revised from £6.93 to £5.70 (−17.7%) since Jun 24, 2026. Share price −4.0% over the past month.

Below-average quality, and screening another 65% overvalued on our models.

What matters now

  • The price sits above even our optimistic bull case (£8.66). The favourable scenario is already priced in.
  • Solid but not exceptional quality (46/100) and above fair value, neither a clear bargain nor a standout compounder.
  • A fairly wide model range (£4.37 to £8.66) leaves room in how you read the outcome.
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Price vs Fair Value (5 years)

£21.79 £9.81 Fair Value £5.70 May 2021 Aug 2026

White line = price, green steps = our fair value per fiscal year, dashed = 300-day average. As of Jul 12, 2026.

How to read this chart

60‑month range £9.81 – £21.79 · fair‑value band £4.37 – £8.66 · the £16.22 price screens above the £5.70 fair value. Green steps = our fair value per fiscal year (point-in-time, no hindsight). Dashed = 300-day average. As of Jul 12, 2026.

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Analysis

PPHE Hotel Group (PPH) currently trades at £16.22, while our model-based Fair Value estimate is £5.70, implying the stock looks roughly 64.9% overvalued today. We read business quality at 46/100 (below-average 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: medium).

Over the trailing twelve months, PPHE Hotel Group generated revenue of £466M at a net margin of 2.8%. Revenue grew 5.8% year over year. It earns a return on equity of 0.1%. Net debt stands at £1.1B. Fundamentals as of Jul 12, 2026

Our scenario range runs from £4.37 (bear case) to £8.66 (bull case); at £16.22, the current price sits above 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. For context, the median of 10 Consumer Cyclical peers we cover trades at -62% fair-value upside, at -65%, PPH screens richer 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 £2.83 £13.67 80
Residual Income £5.47 £5.41 £4.66 76
Rev-Margin DCF £6.56 £19.67 74
All 23 models by family
DCF Models
FCF DCF £4.14 £17.42 38
Owner Earnings £7.22 31
5Y Revenue Exit £6.84 £20.99 39
5Y EBITDA Exit £6.18 £26.97 £53.44 41
10Y Revenue Exit £4.72 £18.91 36
10Y EBITDA Exit £1.83 £18.24 £43.87 37
10Y P/E Exit £1.48 35
Earnings-Based
Graham-Dodd £2.14 £10.18 £14.01 54
Lynch FV £2.71 £3.87 £5.03 50
PEG = 1.0 £2.71 £3.87 £5.03 46
Dividend Discount
Gordon GGM £2.95 £5.32 £7.32 70
DDM Multi-Stage £2.95 £4.86 £5.68 61
Multiples
P/E Multiple £4.72 £6.30 £7.87 63
P/S Multiple £4.02 £5.35 £6.69 58
P/B Multiple £4.02 £5.35 £6.69 55
EV/EBIT £4.24 £11.32 £18.41 53
EV/EBITDA £15.18 £25.91 £36.64 54
EV/Revenue £3.45 £9.59 43
Asset-Based
NCAV (Graham) £3.84 £5.14 £7.68 50
Growth DCF
Growth DCF £2.83 £13.67 80
Rev-Margin DCF £6.56 £19.67 74
Economic Profit
Residual Income £5.47 £5.41 £4.66 76
Growth Earnings
Growth-Adj P/E £4.15 £5.92 £7.70 68

Widest divergence: DCF Models (£6.84) versus Growth DCF (£2.83). Highest evidence: Growth DCF (80).

Key figures & financial health

Revenue (TTM) 466M GBX
Revenue growth (YoY) +5.8%
Net margin 2.8%
Return on equity 0.1%
Free cash flow 49.2M GBX FY2025
P/E ratio 64.2
More key figures
Operating margin 25.5%
EPS (TTM) £0.3100
Dividend yield 2.0%
EPS growth (YoY) -35.0%
Net debt 1.1B GBX FY2025

Figures from reported company fundamentals · as of Jul 12, 2026. TTM = trailing twelve months.

Quality Score breakdown

Overall quality 46/100

Of which business quality 45 · Market factors (momentum, volatility) 40

Profitability 17
Margins and returns on capital today
Quality Growth 42
Are margins and returns improving?
Cashflow 63
Earnings quality: real cash, not paper profit
Fin. Strength 9
Balance sheet, leverage, solvency risk
Investment 81
Disciplined investing over empire-building
Low Volatility 64
Calm price path (market factor)
Momentum 31
Price trend over the last 3–12 months (market factor)
52W Momentum 28
Distance to the 52-week high (market factor)
Net Issuance 88
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

PPHE Hotel Group Limited owns, co-owns, develops, leases, operates, and franchises hospitality real estate in the Netherlands, the United Kingdom, Germany, Croatia, Austria, Hungary, Italy, and Serbia.

Full company description

PPHE Hotel Group Limited owns, co-owns, develops, leases, operates, and franchises hospitality real estate in the Netherlands, the United Kingdom, Germany, Croatia, Austria, Hungary, Italy, and Serbia. The company focuses on full-service upscale, upper upscale, and lifestyle hotels in cities and regional, as well as resort and campsite properties in select resort destinations. It owns and operates hotels and resorts under the Park Plaza, the art'otel, Holmes, Radisson Collection, and the Arena Campsites brands, as well as the Arena Hotels & Apartments. The company operates restaurants and bars; and licensed outlets, including Italian coffee bar espressamente illy and the Balinese Mandara Spa. The company was formerly known as Park Plaza Hotels Limited and changed its name to PPHE Hotel Group Limited in March 2012. PPHE Hotel Group Limited was founded in 1986 and is headquartered in Amsterdam, the Netherlands.

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

Revenue & earnings trend

FY2021 – FY2025 · reported fiscal years

PPHE Hotel Group reported revenue of £466M in FY2025 versus £141M in FY2021, a compound +34.8%/yr. Reported net income was £13.2M in FY2025.

Growth Quality 90/100
Revenue growth appears healthy and is supported by profitability and cash-flow quality.
Latest Revenue (FY 2025)
£466M
Latest YoY
+5.3%
Avg. growth/yr (3Y)
+12.2%
Avg. growth/yr (5Y)
+35.6%
Avg. growth/yr (19Y)
+15.0%
Revenue +34.8%/yr
FY21 £141M
FY22 £330M
FY23 £415M
FY24 £443M
FY25 £466M
Net income
FY21 −£52.1M
FY22 £10.2M
FY23 £22.4M
FY24 £28.2M
FY25 £13.2M

PPH screens 65% overvalued. Compare with Marriott International, Inc →

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Cite: Fair Value Calculator (2026). "PPHE Hotel Group Fair Value". https://www.fairvalue-calculator.com/stock/PPH

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 46 · Below median
Fair Value upside −65% · Bottom 25%
Return on equity (TTM) 0% · Below median
Return on assets 3% · Above median
Net margin (TTM) 3% · Below median
Operating margin (TTM) 25% · Top 25%
Revenue growth 6% · Above median
Dividend yield (TTM) 2.4% · Above median
Debt / equity 2.62× · Higher than 75% of peers

Valuation Multiples vs Lodging median · lower = cheaper

P/E (TTM) 52.3× · Pricier than 75% of peers
P/B 2.84× · Pricier than 75% of peers
P/S (TTM) 1.96× · Pricier than median
P/FCF 18.5× · Pricier than 75% of peers
EV/EBITDA 12.3× · Pricier than median

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 2
FUTURE 29 · sector 18
PAST 0 · sector 11
HEALTH 0 · sector 91
DIVIDEND 48 · sector 23

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

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 12, 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 PPHE Hotel Group (PPH) overvalued or undervalued?
As of Jul 12, 2026, our model estimates a fair value of £5.70 versus a price of £16.22, about −65% (overvalued).
What is the fair value of PPH?
Our model-based fair value for PPHE Hotel Group is £5.70 (as of Jul 12, 2026), built from audited fundamentals. The current price is £16.22.
What is the quality score of PPH?
PPHE Hotel Group has a Quality Score of 46/100. It combines two groups: business quality (profitability, growth, cash flow, balance-sheet strength) and market factors (price momentum, distance to the 52-week high, volatility). Both subtotals are shown separately in the detail view.
What is the revenue of PPHE Hotel Group (PPH)?
PPHE Hotel Group reported trailing-twelve-month revenue of about £466M (latest available figure, as of Jul 12, 2026).
What is the net profit margin of PPH?
The net profit margin of PPHE Hotel Group is about 2.8%, meaning it keeps roughly 2.8% of revenue as net income. Based on the latest reported figures.
Does PPHE Hotel Group pay a dividend?
PPHE Hotel Group currently shows a dividend yield of about 1.96% relative to its recent price (as of Jul 12, 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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