DiamondRock Hospitality Company

DRH-PA is overvalued

NYSE · Real Estate

FAIR PRICE

10.6%downside

Updated daily

Model: DCF 50% · Relative 30% · Consensus 20%

$24.99

MARKET PRICE

$22.33

FAIR PRICE

$2.66

MARGIN

UNDERFAIROVER

COMMUNITY BUY ZONE

UNLOCKS AT 10

Where does the market buy DRH-PA?

No one has priced DRH-PA yet — be the first. Every investor sets the maximum price they'd still buy at; together that maps the community buy zone.

COMMUNITY MEDIAN

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BUYERS AT TODAY'S PRICE

▓▓ %

0/10 INVESTORS · 10 MORE TO UNLOCK

METRICS

P/E96.4
P/B1.0
P/S1.4
PEG
DIV YIELD8.25%
ROE4.1%
ROIC5.7%
DEBT/EQ0.76
MKT CAP$2B

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FPI RATING

4.7/ 10

Attractive valuation and low debt levels, but weak profitability margins and volatile earnings pattern.

Analytical data, not an investment recommendation. Updated daily.

How we calculate this ↗

MARGIN OF SAFETY

A 20% margin of safety below fair value — the conservative entry level for risk-aware investors.

$17.86CONSERVATIVE ENTRY
$22.33FAIR PRICE
$24.99MARKET PRICE

SAFETY MARGIN

20%

Below fair value

ENTRY LEVEL

$17.86

Fair price × 0.80

DISTANCE

28.5%

Price to entry level

At the current price of $24.99, DRH-PA trades 28.5% above the conservative entry level of $17.86. This entry level represents a 20% margin of safety below the calculated fair price of $22.33 — a buffer that accounts for estimation uncertainty in the valuation model.

Margin of safety is a risk management concept, not an investment recommendation. The 20% threshold follows Benjamin Graham's value investing framework. Fair price and entry levels are model-based estimates updated daily. Learn more about Margin of Safety ↗

VALUATION HISTORY

SYNCING FEED

P/E RATIO HISTORY

SYNCING FEED

METHODOLOGY

How we calculate DRH-PA's fair price

DiamondRock Hospitality Company's fair price of $22.33 is derived from a blended model that combines DCF analysis (50%), relative valuation against Real Estate peers using metrics like P/E and EV/EBITDA (30%), and analyst consensus (20%). At the current market price of $24.99, DRH-PA trades 10.6% above its calculated fair value.

DCF MODEL · 50%

Discounted free cash flow analysis based on projected cash flows, discounted at a rate reflecting DRH-PA's risk profile.

RELATIVE · 30%

Comparing DRH-PA's valuation multiples against Real Estate peers to determine if the stock is over or undervalued relative to its industry.

ANALYST · 20%

Aggregated analyst price targets for DRH-PA, weighted by recency and analyst accuracy.

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FAQ

What is the fair price of DRH-PA?+

Based on our blended model combining DCF analysis (50%), relative valuation against Real Estate peers (30%), and analyst consensus (20%), the fair price for DiamondRock Hospitality Company is $22.33. At the current market price of $24.99, DRH-PA trades 10.6% above its calculated fair value.

Is DRH-PA overvalued or undervalued?+

DiamondRock Hospitality Company is currently overvalued based on our valuation model. The stock trades at $24.99, which is 10.6% above the fair price of $22.33. The P/E ratio of 96.4x is a key metric in the valuation.

What is the margin of safety for DRH-PA?+

With a 20% margin of safety applied to the fair price of $22.33, the conservative entry level for DRH-PA is $17.86. At the current market price of $24.99, the stock trades 28.5% above this entry level. Margin of safety is a risk management concept from Benjamin Graham's value investing framework, not an investment recommendation.

How often is DRH-PA's fair price updated?+

We update fair price calculations for DRH-PA daily after market close. The current fair price of $22.33 incorporates the latest market data and sector multiples.

What factors affect DRH-PA's fair price calculation?+

DRH-PA's fair price of $22.33 is derived from DCF analysis (50% weight), relative valuation against Real Estate peers (30% weight), and analyst consensus (20% weight). Key metrics include P/E of 96.4x, ROE of 4.1%, and dividend yield of 8.25%.

Is DRH-PA a good buy right now?+

At $24.99, DRH-PA trades 10.6% above our fair value estimate of $22.33. The stock is currently overvalued. ROE stands at 4.1% (average). Fair Price Index provides valuation data — always do your own research before investing.

Does DRH-PA pay dividends?+

DRH-PA has a dividend yield of 8.25%.

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Fair Price Index is for informational purposes only and does not constitute investment advice. Fair value calculations are model-based estimates and may not reflect actual market conditions. Always conduct your own research before making investment decisions.