Is Marriott International, Inc. overvalued or undervalued?

As of 1 August 2023, Marriott International, Inc. has moved from a fair to a risky valuation grade, indicating potential concerns regarding its current market position. The company appears to be overvalued based on its key ratios, including a P/E ratio of 29, an EV to EBITDA of 17.63, and a Price to Book Value of -22.97, which suggests significant negative equity. In comparison, Royal Caribbean Group has a more favorable P/E of 27.42 and EV to EBITDA of 19.94, while Hilton Worldwide Holdings, Inc. shows a much higher P/E of 50.31, reflecting a disparity in valuation among peers.
Despite a 1-year stock return of 10.56%, which is lower than the S&P 500's return of 17.14% over the same period, Marriott's longer-term performance over 5 years shows a strong return of 164.27%, outperforming the S&P 500's 96.61%. However, the recent downgrade in valuation and concerning financial ratios suggest that the stock may not be a favorable investment at its current price of 263.95.