Is Choice Hotels International, Inc. overvalued or undervalued?

As of 8 August 2024, the valuation grade for Choice Hotels International, Inc. has moved from very expensive to risky. The company is currently considered overvalued. Key ratios include a P/E ratio of 35, an EV to EBITDA of 20.71, and a PEG ratio of 2.02, all indicating a premium valuation compared to its peers.
In comparison, Carnival Corp. has a P/E of 14.84 and an EV to EBITDA of 9.51, while Wyndham Hotels & Resorts, Inc. shows a P/E of 19.83 and an EV to EBITDA of 9.29, both suggesting that Choice Hotels is trading at a higher valuation despite its recent performance. The company's stock has underperformed relative to the S&P 500 over the year, with a return of 4.79% compared to the S&P 500's 10.26%, reinforcing the notion that it is overvalued in the current market environment.