Choice Hotels (CHH) fundamentals: P/E, valuation, undervalued?

Choice Hotels · Consumer Discretionary · ref. ETF XLY · price $108.54
Logo Choice HotelsSee the full Choice Hotels (CHH) profile
In short — Choice Hotels trades at 15.6× earnings (P/E), 14.4× forward, with a net margin of 32.6 % and revenue growth of +7 %. Read: Average P/E (P/E 16 (near the ~20-25 average)).

Is Choice Hotels stock cheap or undervalued? A good time to buy? Here are its fundamentals — P/E, PEG, margin and income statement — to judge its valuation.

📈 1-year price
$108.54-8.9% over range
Aug 28, 25low $84.4 · high $122.08Aug 27, 26
📏 Click 2 points (left → right) to measure the change · click again to clear.
SellBuy
Hold
17% recommend buying · 6 analysts
Valuation : Average P/E — P/E 16 (near the ~20-25 average)

Valuation

15.6
P/E (price/earnings)
14.4
Forward P/E
PEG
34.2
Price/book (P/B)
$4.9B
Market cap
6.98
EPS

Profitability & growth

32.6 %
Net margin
+7 %
Revenue growth
-19 %
Earnings growth
$2.1B
Total debt

Choice Hotels income statement

Fiscal yearRevenueNet incomeMargin
2022$1.4B$332M23.7 %
2023$1.5B$259M16.7 %
2024$1.6B$300M18.9 %
2025$1.6B$370M23.2 %
⚠️ Indicative financial data (Yahoo Finance), not investment advice. Amounts in $.

Frequently asked questions

What is Choice Hotels's P/E and is the stock undervalued? What's a good P/E?

Choice Hotels's P/E is 15.6 (forward 14.4). Below ~15 = fairly cheap, above ~30 = expensive. Our valuation verdict: "Average P/E".

Is Choice Hotels profitable?

Choice Hotels has a net margin of 32.6 % (EPS 6.98). The company is profitable.

Is CHH stock expensive?

Our read: "Average P/E" — P/E 16 (near the ~20-25 average). Cross-check with growth and sector.

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