Latest Ratios: P/E Ratio 264.5x · EV/EBITDA 13.9x · ROE 1.2%. (2001–2025 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 | $2.1B | $1.7B | $2.4B | $2.2B | $2.1B | $2.5B | $2.4B | $3.1B | $2.9B | $3.7B | $3.3B |
| Enterprise Value | $2.9B | $2.6B | $3.1B | $2.6B | $2.8B | $3.1B | $2.9B | $3.4B | $3.1B | $4.2B | $3.9B |
| P/E Ratio → | 264.54 | 211.35 | 84.57 | 11.54 | 28.41 | 73.31 | — | 25.78 | 11.72 | 28.02 | 27.73 |
| P/S Ratio | 2.17 | 1.81 | 2.65 | 2.24 | 2.25 | 4.98 | 9.13 | 2.82 | 2.54 | 3.07 | 2.76 |
| P/B Ratio | 1.12 | 0.89 | 1.14 | 1.02 | 0.99 | 1.13 | 1.17 | 1.20 | 1.08 | 1.42 | 1.29 |
| P/FCF | 26.48 | 22.07 | 14.08 | 11.15 | 25.42 | — | — | 10.80 | 10.25 | 18.74 | 26.60 |
| P/OCF | 11.47 | 9.56 | 14.08 | 11.15 | 9.81 | 89.43 | — | 10.80 | 9.63 | 11.80 | 10.73 |
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 | 3.47 | 2.65 | 3.05 | 5.99 | 10.71 | 3.01 | 2.70 | 3.51 | 3.24 |
| EV / EBITDA | 13.86 | 12.20 | 15.49 | 10.64 | 12.34 | 70.56 | — | 2.95 | 2.46 | 3.64 | 3.25 |
| EV / EBIT | 38.76 | 32.84 | 35.03 | 10.04 | 22.67 | 47.07 | — | 17.32 | 10.26 | 22.33 | 20.49 |
| EV / FCF | — | 32.44 | 18.46 | 13.19 | 34.46 | — | — | 11.55 | 10.93 | 21.41 | 31.29 |
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 | 4.7% | 4.7% | 46.6% | 48.3% | 49.1% | 40.6% | 6.1% | 52.4% | 52.9% | 53.0% | 52.9% |
| Operating Margin | 7.8% | 7.8% | 8.7% | 12.0% | 10.9% | -16.8% | — | 16.0% | 25.8% | 11.8% | 14.3% |
| Net Profit Margin | 2.6% | 2.6% | 4.8% | 21.0% | 9.6% | 6.7% | -151.1% | 12.2% | 21.6% | 12.2% | 11.3% |
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| ROE | 1.2% | 1.2% | 2.0% | 9.7% | 4.0% | 1.6% | -17.2% | 5.1% | 9.5% | 5.7% | 5.5% |
| ROA | 0.8% | 0.8% | 1.4% | 6.6% | 2.9% | 1.1% | -11.7% | 3.4% | 6.4% | 3.8% | 3.5% |
| ROIC | 2.0% | 2.0% | 2.2% | 3.3% | 2.7% | -2.4% | — | 4.7% | 7.5% | 3.4% | 4.2% |
| ROCE | 2.5% | 2.5% | 2.6% | 4.1% | 3.5% | -3.0% | — | 4.9% | 8.1% | 4.1% | 5.1% |
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 | 0.48 | 0.48 | 0.41 | 0.38 | 0.40 | 0.28 | 0.38 | 0.40 | 0.37 | 0.39 | 0.37 |
| Debt / EBITDA | 4.42 | 4.42 | 4.20 | 3.38 | 3.68 | 14.67 | — | 0.91 | 0.79 | 0.88 | 0.80 |
| Net Debt / Equity | — | 0.42 | 0.35 | 0.19 | 0.35 | 0.23 | 0.20 | 0.08 | 0.07 | 0.20 | 0.23 |
| Net Debt / EBITDA | 3.90 | 3.90 | 3.67 | 1.65 | 3.24 | 11.89 | — | 0.19 | 0.15 | 0.45 | 0.49 |
| Debt / FCF | — | 10.37 | 4.38 | 2.04 | 9.04 | — | — | 0.75 | 0.68 | 2.67 | 4.69 |
| Interest Coverage | 1.58 | 1.58 | 1.89 | 5.31 | 3.84 | 2.04 | -6.64 | 3.58 | 6.41 | 3.62 | 3.74 |
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 | 2.30 | 2.30 | 2.49 | 3.33 | 0.65 | 1.60 | 4.79 | 2.81 | 3.90 | 3.00 | 1.39 |
| Quick Ratio | 2.19 | 2.19 | 2.38 | 3.33 | 0.63 | 1.60 | 4.79 | 2.81 | 3.90 | 3.00 | 1.39 |
| Cash Ratio | 1.04 | 1.04 | 1.13 | 2.57 | 0.31 | 0.69 | 4.06 | 2.51 | 3.48 | 2.01 | 0.90 |
| Asset Turnover | — | 0.32 | 0.29 | 0.31 | 0.30 | 0.17 | 0.09 | 0.28 | 0.29 | 0.31 | 0.32 |
| Inventory Turnover | 78.98 | 78.98 | 46.12 | — | 58.62 | — | — | — | 506.85 | 423.98 | 457.16 |
| 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% | 5.0% | 2.5% | 2.7% | 1.2% | 0.5% | 6.4% | 5.4% | 6.0% | 4.4% | 6.9% |
| Payout Ratio | — | — | 138.3% | 28.9% | 28.4% | 39.9% | — | 125.4% | 70.9% | 112.1% | 169.5% |
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Earnings Yield | 0.4% | 0.5% | 1.2% | 8.7% | 3.5% | 1.4% | — | 3.9% | 8.5% | 3.6% | 3.6% |
| FCF Yield | 3.8% | 4.5% | 7.1% | 9.0% | 3.9% | — | — | 9.3% | 9.8% | 5.3% | 3.8% |
| Buyback Yield | 5.2% | 6.2% | 1.3% | 2.7% | 5.4% | 0.2% | 4.4% | 1.7% | 0.1% | 0.1% | 0.1% |
| Total Shareholder Yield | 9.2% | 11.2% | 3.8% | 5.4% | 6.7% | 0.7% | 10.8% | 7.2% | 6.2% | 4.5% | 7.0% |
| Shares Outstanding | — | $194M | $203M | $206M | $213M | $216M | $216M | $226M | $226M | $222M | $215M |
Luxury leisure demand volatility
Based on the provided quarterly data, Sunstone's P/FFO multiple has remained remarkably consistent, hovering near 10.0x to 10.6x, which suggests that the market is pricing the REIT primarily on its balance sheet stability rather than aggressive near-term earnings growth expectations.
The stability of the P/FFO multiple in a range of 10.09 to 10.65 indicates that investors are assigning a valuation floor to the company, likely due to its conservative debt profile. This valuation appears to discount the potential for rapid earnings expansion, suggesting that the market views Sunstone as a defensive play within the volatile lodging sector.
As reported in the quarterly financial statements, NOI margins have exhibited extreme fluctuations, ranging from a negative 123.7% in 2025Q4 to 100% in 2026Q1, which complicates the assessment of underlying property-level profitability and suggests significant non-recurring accounting noise.
The erratic nature of these margins warrants caution, as they likely reflect the impact of heavy renovation cycles and non-cash charges rather than pure operational performance. Investors should monitor whether these swings stabilize as the portfolio recycling strategy matures and capital expenditures normalize.
According to recent financial filings, Sunstone maintains a debt-to-equity ratio that has remained tightly controlled between 0.38 and 0.50 over the last ten quarters, providing a fortress-like balance sheet that stands in stark contrast to more highly levered lodging peers.
This low leverage profile suggests that the company is well-positioned to navigate interest rate volatility and potential economic downturns without the immediate need for refinancing. The ability to maintain such a structure while continuing to invest in high-barrier-to-entry assets appears to be a core component of the company's risk management strategy.
Based on the reported FFO payout ratios, which fluctuated between 11.3% and 70.8% over the observed period, Sunstone appears to maintain a significant buffer of retained cash flow to support its dividend and ongoing capital reinvestment requirements.
The variability in the payout ratio suggests that management prioritizes capital preservation and property-level reinvestment over a fixed dividend policy. This approach appears to enhance dividend safety, as the company retains substantial cash flow to navigate cyclical troughs in the luxury travel market.
The market's reliance on a 281.80x P/E ratio for Sunstone is fundamentally misleading, as it fails to account for the massive non-cash depreciation charges inherent in hotel real estate that obscure the company's actual cash-generating capacity.
Investors should instead focus on P/FFO or P/AFFO metrics, which adjust for these non-cash expenses and provide a more accurate reflection of the REIT's ability to fund dividends and capital expenditures. Relying on standard P/E ratios in this context risks significantly overstating the company's valuation and misinterpreting its true earnings power.
Includes 30+ ratios · 25 years · Updated daily
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Quick answers to the most common questions about buying SHO stock.
Sunstone Hotel Investors, Inc.'s current P/E ratio is 264.5x. The historical average is 36.7x. This places it at the 100th percentile of its historical range.
Sunstone Hotel Investors, Inc.'s current EV/EBITDA is 13.9x. This enterprise value multiple compares the company's total value (equity + debt - cash) to its EBITDA. The historical average is 16.2x.
Sunstone Hotel Investors, Inc.'s return on equity (ROE) is 1.2%. The historical average is 1.5%.
Based on historical data, Sunstone Hotel Investors, Inc. is trading at a P/E of 264.5x. This is at the 100th percentile of its historical P/E range. Compare with industry peers and growth rates for a complete picture.
Sunstone Hotel Investors, Inc.'s current dividend yield is 3.97%.
Sunstone Hotel Investors, Inc. has 4.7% gross margin and 7.8% operating margin.
Sunstone Hotel Investors, Inc.'s Debt/EBITDA ratio is 4.4x, indicating high leverage. A ratio above 4x may signal elevated financial risk.