Latest Ratios: P/E Ratio 26.7x · EV/EBITDA 12.8x · ROE 6.6%. (2004–2025 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 | $2.4B | $1.9B | $1.9B | $2.0B | $1.7B | $2.0B | $1.7B | $2.2B | $1.9B | $2.3B | $2.3B |
| Enterprise Value | $3.5B | $3.0B | $3.0B | $3.2B | $3.0B | $3.2B | $2.7B | $3.4B | $2.8B | $3.0B | $3.0B |
| P/E Ratio → | 26.70 | 20.36 | 50.17 | 26.08 | 17.43 | — | — | 12.18 | 21.12 | 24.54 | 20.23 |
| P/S Ratio | 2.14 | 1.67 | 1.69 | 1.85 | 1.74 | 3.59 | 5.56 | 2.39 | 2.17 | 2.62 | 2.59 |
| P/B Ratio | 1.68 | 1.28 | 1.19 | 1.21 | 1.09 | 1.34 | 0.97 | 1.17 | 0.99 | 0.89 | 0.94 |
| P/FCF | 14.77 | 11.51 | 13.36 | 16.82 | — | — | — | — | 17.97 | 21.83 | 20.63 |
| P/OCF | 9.82 | 7.66 | 8.50 | 8.39 | 8.47 | — | — | 11.62 | 8.53 | 11.12 | 10.79 |
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 | — | 2.66 | 2.66 | 2.94 | 2.97 | 5.60 | 9.03 | 3.62 | 3.25 | 3.48 | 3.35 |
| EV / EBITDA | 12.77 | 10.86 | 11.71 | 8.49 | 10.98 | 43.55 | — | 10.11 | 3.31 | 3.48 | 3.35 |
| EV / EBIT | 21.70 | 18.47 | 26.08 | 20.80 | 19.57 | — | — | 33.59 | 21.28 | 21.55 | 17.78 |
| EV / FCF | — | 18.41 | 21.05 | 26.67 | — | — | — | — | 26.94 | 29.07 | 26.64 |
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 | 55.2% | 55.2% | 54.7% | 27.3% | 56.8% | 49.7% | -13.7% | 26.4% | 30.6% | 33.2% | 34.4% |
| Operating Margin | 14.4% | 14.4% | 12.7% | 24.3% | 16.2% | -5.3% | — | 23.4% | 12.1% | 16.1% | 17.6% |
| Net Profit Margin | 9.1% | 9.1% | 4.3% | 8.0% | 10.9% | -34.3% | -131.7% | 19.6% | 10.2% | 10.6% | 12.8% |
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| ROE | 6.6% | 6.6% | 3.0% | 5.3% | 7.0% | -12.0% | -21.7% | 9.6% | 4.0% | 3.7% | 5.3% |
| ROA | 3.3% | 3.3% | 1.5% | 2.7% | 3.5% | -6.4% | -12.0% | 5.5% | 2.8% | 3.0% | 3.6% |
| ROIC | 4.6% | 4.6% | 3.9% | 6.9% | 4.4% | -0.8% | — | 5.6% | 2.6% | 3.3% | 4.0% |
| ROCE | 6.0% | 6.0% | 5.0% | 9.0% | 5.9% | -1.1% | — | 7.3% | 3.7% | 5.1% | 5.5% |
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 | 0.81 | 0.81 | 0.74 | 0.78 | 0.81 | 0.77 | 0.67 | 0.66 | 0.52 | 0.37 | 0.37 |
| Debt / EBITDA | 4.31 | 4.31 | 4.60 | 3.46 | 4.79 | 16.13 | — | 3.78 | 1.15 | 1.08 | 1.03 |
| Net Debt / Equity | — | 0.77 | 0.69 | 0.71 | 0.77 | 0.75 | 0.61 | 0.60 | 0.49 | 0.30 | 0.27 |
| Net Debt / EBITDA | 4.07 | 4.07 | 4.28 | 3.14 | 4.54 | 15.60 | — | 3.41 | 1.10 | 0.87 | 0.76 |
| Debt / FCF | — | 6.90 | 7.70 | 9.85 | — | — | — | — | 8.97 | 7.24 | 6.01 |
| Interest Coverage | 2.57 | 2.57 | 1.76 | 2.34 | 3.83 | -4.19 | -6.82 | 2.17 | 3.22 | 3.65 | 4.05 |
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 | 0.19 | 0.19 | 0.94 | 1.04 | 0.90 | 0.55 | 0.62 | 0.87 | 0.57 | 1.16 | 1.30 |
| Quick Ratio | 0.19 | 0.19 | 0.94 | 1.04 | 0.90 | 0.55 | 0.62 | 0.87 | 0.43 | 1.04 | 1.15 |
| Cash Ratio | 0.19 | 0.19 | 0.21 | 0.41 | 0.21 | 0.11 | 0.34 | 0.39 | 0.13 | 0.56 | 0.78 |
| Asset Turnover | — | 0.37 | 0.36 | 0.33 | 0.31 | 0.19 | 0.10 | 0.27 | 0.27 | 0.28 | 0.29 |
| Inventory Turnover | — | — | — | — | — | — | — | — | 12.56 | 14.46 | 12.76 |
| Days Sales Outstanding | — | — | — | — | — | — | — | — | — | — | — |
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 | 4.0% | 5.3% | 1.3% | 1.6% | 0.4% | 0.0% | 1.5% | 4.5% | 5.5% | 4.4% | 4.3% |
| Payout Ratio | 96.9% | 96.9% | 53.3% | 37.0% | 5.9% | — | — | 55.6% | 117.0% | 109.4% | 87.8% |
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Earnings Yield | 3.7% | 4.9% | 2.0% | 3.8% | 5.7% | — | — | 8.2% | 4.7% | 4.1% | 4.9% |
| FCF Yield | 6.8% | 8.7% | 7.5% | 5.9% | — | — | — | — | 5.6% | 4.6% | 4.8% |
| Buyback Yield | 6.5% | 8.4% | 1.7% | 0.3% | 0.8% | 0.1% | 0.7% | 1.9% | 1.8% | 0.0% | 0.3% |
| Total Shareholder Yield | 10.5% | 13.6% | 3.1% | 1.9% | 1.1% | 0.1% | 2.2% | 6.5% | 7.3% | 4.4% | 4.6% |
| Shares Outstanding | — | $208M | $211M | $212M | $213M | $212M | $202M | $203M | $206M | $202M | $202M |
Cyclical RevPAR sensitivity
Based on reported financial data, DiamondRock's P/FFO multiple has remained tightly clustered between 7.0x and 7.9x over the last ten quarters, suggesting that the market is applying a consistent, albeit cautious, valuation discount due to the inherent volatility of the lodging sector's cash flows.
The stability of the P/FFO multiple despite significant swings in quarterly FFO per share indicates that investors are looking through short-term earnings noise to focus on the long-term asset value. However, the lack of a premium valuation suggests that the market remains skeptical of the company's ability to drive sustained organic growth in a high-interest-rate environment.
According to quarterly filings, NOI margins have exhibited extreme variance, ranging from a low of 21.5% in 2025Q2 to a peak of 100% in 2026Q1, which highlights the difficulty in maintaining consistent property-level profitability amidst fluctuating labor costs and seasonal demand shifts.
This margin instability suggests that DiamondRock's operating leverage is a double-edged sword, where fixed costs disproportionately impact the bottom line during off-peak periods. Investors should monitor whether management can stabilize these margins through more efficient cost-containment strategies or if the current volatility is a permanent feature of their asset mix.
As reported in recent financial statements, the FFO payout ratio has fluctuated significantly, reaching an unsustainable 122.2% in 2025Q1, which underscores the inherent risk to dividend continuity when operating cash flows are subjected to the cyclical nature of the hospitality industry.
The wide variance in payout ratios suggests that the dividend is not yet supported by a stable, recurring cash flow base, making it highly sensitive to quarterly performance. Future dividend sustainability appears contingent upon the company's ability to maintain consistent FFO growth and manage the heavy maintenance CapEx requirements that often erode distributable cash.
Based on reported figures, DiamondRock has maintained a debt-to-equity ratio consistently below 0.81 over the past two years, reflecting a disciplined capital structure that provides a necessary buffer against the sector's inherent revenue volatility and rising interest expense pressures.
This conservative posture appears to be a strategic choice to prioritize balance sheet health over aggressive expansion, which may limit growth potential but enhances resilience during cyclical downturns. The company's ability to maintain this leverage profile while navigating interest rate headwinds warrants further investigation into their long-term debt maturity schedule.
The most commonly misapplied metric for DiamondRock is the standard P/E ratio, which fails to account for the significant non-cash depreciation charges inherent in hotel ownership, thereby obscuring the company's true cash-generating capacity and leading to a distorted view of its valuation.
Because depreciation is a non-cash expense that does not reflect the actual maintenance requirements of the properties, the P/E ratio significantly understates the REIT's earnings power. Analysts should instead utilize P/FFO or P/AFFO, which adjust for these non-cash items and provide a more accurate reflection of the cash available for distribution and reinvestment.
Includes 30+ ratios · 22 years · Updated daily
DCF models, multiple analysis, and analyst estimates.
10-year return with dividends reinvested.
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Compare growth, multiples, and margins vs sector.
Quick answers to the most common questions about buying DRH stock.
DiamondRock Hospitality Company's current P/E ratio is 26.7x. The historical average is 24.6x. This places it at the 79th percentile of its historical range.
DiamondRock Hospitality Company'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 14.3x.
DiamondRock Hospitality Company's return on equity (ROE) is 6.6%. The historical average is 1.8%.
Based on historical data, DiamondRock Hospitality Company is trading at a P/E of 26.7x. This is at the 79th percentile of its historical P/E range. Compare with industry peers and growth rates for a complete picture.
DiamondRock Hospitality Company's current dividend yield is 4.02% with a payout ratio of 96.9%.
DiamondRock Hospitality Company has 55.2% gross margin and 14.4% operating margin. Operating margin between 10-20% is typical for established companies.
DiamondRock Hospitality Company's Debt/EBITDA ratio is 4.3x, indicating high leverage. A ratio above 4x may signal elevated financial risk.