Is DiamondRock Hospitality Co. overvalued or undervalued?

As of 19 August 2025, the valuation grade for DiamondRock Hospitality Co. has moved from attractive to fair. Based on the current metrics, the company appears to be fairly valued. Key ratios include a P/E ratio of 24, an EV to EBITDA of 5.48, and a Price to Book Value of 1.01. In comparison, peers such as CareTrust REIT, Inc. have a P/E of 35.16, while Highwoods Properties, Inc. shows a lower P/E of 22.45, indicating that DiamondRock's valuation is more conservative relative to some of its peers.
In terms of recent performance, DiamondRock has underperformed against the S&P 500 across multiple periods, with a year-to-date return of -7.75% compared to the S&P 500's 12.22%. This trend reinforces the notion that the stock may not be capturing the same growth potential as the broader market.