Latest Ratios: P/E Ratio 14.2x · EV/EBITDA 12.8x · ROE 544.2%. (1996–2025 historical series)
Price-based multiples — how expensive the stock is relative to earnings, sales, book value, and cash flow
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Market Cap | $5.1B | $4.4B | $6.7B | $5.7B | $6.2B | $8.7B | $5.9B | $5.8B | $4.1B | $4.4B | $3.2B |
| Enterprise Value | $7.2B | $6.5B | $8.5B | $7.4B | $7.5B | $9.3B | $6.8B | $6.6B | $4.8B | $4.9B | $3.8B |
| P/E Ratio → | 14.22 | 12.06 | 22.90 | 22.35 | 18.80 | 30.29 | 79.06 | 25.99 | 18.84 | 38.42 | 22.78 |
| P/S Ratio | 3.22 | 2.78 | 4.23 | 3.72 | 4.43 | 8.15 | 7.66 | 5.16 | 3.91 | 4.38 | 3.43 |
| P/B Ratio | 28.88 | 24.48 | — | 161.37 | 40.15 | 32.79 | — | — | — | — | — |
| P/FCF | 41.25 | 35.60 | 38.61 | 32.22 | 22.41 | 28.50 | 78.92 | 27.88 | 21.07 | 19.07 | 25.55 |
| P/OCF | 19.01 | 16.41 | 20.98 | 19.37 | 16.91 | 22.72 | 51.51 | 21.28 | 16.78 | 17.15 | 20.89 |
P/E links to full P/E history page with 30-year chart
Enterprise-value multiples — capital-structure-neutral measures of total business value
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| EV / Revenue | — | 4.08 | 5.39 | 4.79 | 5.32 | 8.71 | 8.75 | 5.93 | 4.61 | 4.87 | 4.12 |
| EV / EBITDA | 12.81 | 11.56 | 15.99 | 17.84 | 13.74 | 19.43 | 39.82 | 6.01 | 4.63 | 5.35 | 4.12 |
| EV / EBIT | 15.95 | 11.90 | 17.71 | 18.46 | 15.51 | 22.01 | 66.39 | 20.86 | 15.05 | 16.67 | 19.80 |
| EV / FCF | — | 52.33 | 49.25 | 41.51 | 26.89 | 30.45 | 90.20 | 31.99 | 24.83 | 21.19 | 30.69 |
Margins and return-on-capital ratios measuring operating efficiency
Full margin charts and quarterly trend are on the Earnings History page
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Gross Margin | 40.9% | 40.9% | 47.0% | 44.7% | 49.9% | 56.1% | 40.2% | 46.8% | 48.7% | 43.7% | 43.1% |
| Operating Margin | 28.4% | 28.4% | 29.3% | 24.3% | 34.1% | 40.1% | 15.7% | 28.6% | 30.6% | 26.3% | 25.8% |
| Net Profit Margin | 23.2% | 23.2% | 18.9% | 16.7% | 23.7% | 27.0% | 9.7% | 20.0% | 20.8% | 11.4% | 15.1% |
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| ROE | 544.2% | 544.2% | — | 271.7% | 158.0% | 222.2% | — | — | — | — | — |
| ROA | 13.6% | 13.6% | 12.2% | 11.5% | 16.5% | 16.4% | 5.1% | 17.7% | 20.9% | 12.9% | 17.8% |
| ROIC | 16.7% | 16.7% | 19.9% | 18.2% | 31.8% | 37.8% | 10.9% | 34.9% | 61.5% | 70.9% | 65.0% |
| ROCE | 20.1% | 20.1% | 26.4% | 24.1% | 31.6% | 31.9% | 10.2% | 33.9% | 43.8% | 43.3% | 43.5% |
Solvency and debt-coverage ratios — lower is generally safer
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Debt / Equity | 11.76 | 11.76 | — | 47.24 | 8.31 | 4.17 | — | — | — | — | — |
| Debt / EBITDA | 3.78 | 3.78 | 3.53 | 4.06 | 2.37 | 2.31 | 6.36 | 0.80 | 0.73 | 0.79 | 0.91 |
| Net Debt / Equity | — | 11.51 | — | 46.49 | 8.04 | 2.24 | — | — | — | — | — |
| Net Debt / EBITDA | 3.70 | 3.70 | 3.45 | 3.99 | 2.29 | 1.24 | 4.98 | 0.77 | 0.70 | 0.54 | 0.69 |
| Debt / FCF | — | 16.73 | 10.64 | 9.28 | 4.49 | 1.95 | 11.28 | 4.11 | 3.76 | 2.12 | 5.14 |
| Interest Coverage | 6.01 | 6.01 | 5.54 | 6.28 | 10.97 | 9.07 | 2.08 | 6.77 | 6.95 | 6.53 | 4.33 |
Short-term solvency ratios and asset-utilisation metrics
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Current Ratio | 0.87 | 0.87 | 0.73 | 0.31 | 0.80 | 1.34 | 1.69 | 0.73 | 0.77 | 1.37 | 1.31 |
| Quick Ratio | 0.87 | 0.87 | 0.73 | 0.31 | 0.80 | 1.34 | 1.69 | 0.73 | 0.69 | 1.37 | 1.31 |
| Cash Ratio | 0.10 | 0.10 | 0.09 | 0.03 | 0.10 | 0.90 | 0.92 | 0.10 | 0.08 | 0.80 | 0.77 |
| Asset Turnover | — | 0.55 | 0.63 | 0.64 | 0.67 | 0.55 | 0.49 | 0.80 | 0.91 | 1.09 | 1.08 |
| Inventory Turnover | — | — | — | — | — | — | — | — | 21.02 | — | — |
| Days Sales Outstanding | — | 47.43 | 59.33 | 46.30 | 71.29 | 75.13 | 84.01 | 58.31 | 48.38 | 45.61 | 42.37 |
Earnings, FCF, buyback, and dividend yields — total returns to shareholders
Full dividend history and growth charts are on the Dividend History page
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Dividend Yield | 1.0% | 1.2% | 0.8% | 1.0% | 0.8% | 0.3% | 0.4% | 0.8% | 1.2% | 1.1% | 1.5% |
| Payout Ratio | 14.5% | 14.5% | 18.5% | 21.8% | 15.8% | 8.7% | 33.5% | 21.6% | 22.5% | 42.3% | 33.1% |
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Earnings Yield | 7.0% | 8.3% | 4.4% | 4.5% | 5.3% | 3.3% | 1.3% | 3.8% | 5.3% | 2.6% | 4.4% |
| FCF Yield | 2.4% | 2.8% | 2.6% | 3.1% | 4.5% | 3.5% | 1.3% | 3.6% | 4.7% | 5.2% | 3.9% |
| Buyback Yield | 2.7% | 3.1% | 5.7% | 6.3% | 7.0% | 0.2% | 0.9% | 0.9% | 3.6% | 0.2% | 1.1% |
| Total Shareholder Yield | 3.7% | 4.3% | 6.5% | 7.3% | 7.8% | 0.4% | 1.4% | 1.7% | 4.8% | 1.3% | 2.6% |
| Shares Outstanding | — | $47M | $47M | $51M | $55M | $56M | $56M | $56M | $57M | $57M | $57M |
Excessive leverage and thin equity
Based on recent market data, CHH trades at a P/E of 14.27, which appears to discount the company's historical growth volatility compared to the significantly higher multiples commanded by peers like Hilton and Marriott, suggesting investors remain skeptical of the firm's ability to sustain long-term unit expansion.
The current PEG ratio of 0.34 implies that the market is pricing in a significant deceleration in earnings growth, potentially reflecting concerns over the company's ability to integrate recent acquisitions. While the valuation appears cheap relative to the broader lodging sector, this discount may be justified by the company's thin equity base and the inherent risks associated with its aggressive capital allocation strategy.
As reported in financial statements, CHH's ROIC has struggled to maintain momentum, falling to 2.0% in 2026Q1 from a peak of 6.4% in 2024Q3, which indicates that the company is failing to generate adequate returns on its invested capital relative to its cost of debt.
The persistent decline in ROIC suggests that the company's asset-light model is being undermined by the high cost of maintaining its technology infrastructure and the capital intensity of franchisee incentives. Investors should monitor whether management can improve these returns through operational efficiencies or if the current capital structure will continue to drag on long-term value creation.
According to recent SEC filings, CHH's asset turnover ratio has remained stagnant at approximately 0.12 to 0.16 over the last ten quarters, highlighting a lack of improvement in the company's ability to generate revenue from its existing asset base despite its focus on an asset-light franchising model.
The inconsistency in DSO, which reached 60 days in 2026Q1, suggests potential friction in collecting royalty fees from franchisees, which may be exacerbated by the current high-interest-rate environment. This inefficiency in working capital management appears to be a structural drag on the company's cash conversion cycle and overall operational agility.
Based on the provided balance sheet data, CHH's D/E ratio reached an alarming 15.35 in 2026Q1, a significant increase from historical levels, which indicates that the company's reliance on debt to fund share repurchases has left it with a highly vulnerable capital structure in a volatile market.
The interest coverage ratio has deteriorated to 2.26, suggesting that the company's ability to service its debt obligations is becoming increasingly constrained. This level of leverage warrants close investigation, as it limits the company's capacity to invest in future growth initiatives or navigate potential downturns in the lodging industry.
As reported in financial statements, analysts frequently rely on P/E ratios to evaluate CHH, which obscures the company's true financial health by ignoring the massive impact of share repurchases on the equity base and the resulting distortion of earnings per share in an asset-light business model.
Investors should instead focus on EV/EBITDA and free cash flow yield, as these metrics provide a clearer picture of the company's operational performance without the noise created by financial engineering. Relying on P/E in this context may lead to an overestimation of the company's profitability and an underestimation of the risks posed by its highly leveraged balance sheet.
Includes 30+ ratios · 30 years · Updated daily
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Quick answers to the most common questions about buying CHH stock.
Choice Hotels International, Inc.'s current P/E ratio is 14.2x. The historical average is 26.1x. This places it at the 3th percentile of its historical range.
Choice Hotels International, Inc.'s current EV/EBITDA is 12.8x. This enterprise value multiple compares the company's total value (equity + debt - cash) to its EBITDA. The historical average is 13.8x.
Choice Hotels International, Inc.'s return on equity (ROE) is 544.2%. This is above the typical threshold of 15-20% considered good for most companies. The historical average is 118.5%.
Based on historical data, Choice Hotels International, Inc. is trading at a P/E of 14.2x. This is at the 3th percentile of its historical P/E range. Compare with industry peers and growth rates for a complete picture.
Choice Hotels International, Inc.'s current dividend yield is 1.02% with a payout ratio of 14.5%.
Choice Hotels International, Inc. has 40.9% gross margin and 28.4% operating margin. Operating margin above 20% indicates strong pricing power and cost efficiency.
Choice Hotels International, Inc.'s Debt/EBITDA ratio is 3.8x, indicating high leverage. A ratio between 2-4x is manageable but warrants monitoring.