Is Marriott International, Inc. overvalued or undervalued?

As of 1 August 2023, the valuation grade for Marriott International, Inc. has moved from very expensive to risky. The company appears to be overvalued based on its current financial ratios and peer comparisons. The P/E ratio stands at 29, significantly higher than the peer average of 22.06 for Royal Caribbean Group, while its EV to EBITDA ratio of 17.63 also exceeds the peer average of 16.38. Additionally, the negative price to book value of -22.97 raises concerns about the company's valuation sustainability.
In comparison to its peers, Hilton Worldwide Holdings, Inc. shows a much higher P/E ratio of 42.52, indicating that Marriott's valuation might be less attractive in the current market context. Despite recent stock performance showing a 1-year return of 8.45% compared to the S&P 500's 10.26%, the overall metrics suggest that Marriott is overvalued at its current price of $264.11, especially given the negative returns year-to-date.