Is DiamondRock Hospitality Co. overvalued or undervalued?

As of 31 October 2025, the valuation grade for DiamondRock Hospitality Co. moved from expensive to fair. The company is currently fairly valued based on its metrics. 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 more attractive P/E of 22.45.
Despite the fair valuation, DiamondRock has underperformed against the S&P 500 across multiple periods, with a year-to-date return of -13.40% compared to the S&P 500's 16.30%. This trend highlights the challenges the company faces in the current market environment.