Diamondrock Hospitality Co
NYSE:DRH

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Diamondrock Hospitality Co
NYSE:DRH
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Price: 10.31 USD -1.9% Market Closed
Market Cap: $2.1B

EV/EBIT

19.2
Current
1%
More Expensive
vs 3-y average of 19

Enterprise Value to EBIT (EV/EBIT) ratio compares a company`s total enterprise value to its earnings before interest and taxes. It shows how much investors are paying for each dollar of the company`s earnings, including both equity and debt.

EV/EBIT
19.2
=
Enterprise Value
$2.9B
/
EBIT
$163.7m

Enterprise Value to EBIT (EV/EBIT) ratio compares a company`s total enterprise value to its earnings before interest and taxes. It shows how much investors are paying for each dollar of the company`s earnings, including both equity and debt.

EV/EBIT
19.2
=
Enterprise Value
$2.9B
/
EBIT
$163.7m

Valuation Scenarios

Diamondrock Hospitality Co is trading above its 3-year average

If EV/EBIT returns to its 3-Year Average (19), the stock would be worth $10.21 (1% downside from current price).

Statistics
Positive Scenarios
2/4
Maximum Downside
-3%
Maximum Upside
+77%
Average Upside
19%
Scenario EV/EBIT Value Implied Price Upside/Downside
Current Multiple 19.2 $10.31
0%
3-Year Average 19 $10.21
-1%
5-Year Average 18.7 $10.03
-3%
Industry Average 34 $18.26
+77%
Country Average 19.6 $10.54
+2%

Forward EV/EBIT
Today’s price vs future ebit

Today's Enterprise Value EBIT Forward EV/EBIT
$2.9B
/
Jan 2026
$163.7m
=
19.2
Current
$2.9B
/
Dec 2026
$169.9m
=
17.3
Forward
$2.9B
/
Dec 2027
$175.4m
=
16.8
Forward
$2.9B
/
Dec 2028
$193.1m
=
15.2
Forward

Forward EV/EBIT shows whether today’s EV/EBIT still looks high or low once future ebit are taken into account.

Peer Comparison

All Multiples
EV/EBIT
P/E
All Countries
Close

Market Distribution

In line with most companies in the United States of America
Percentile
49th
Based on 8 638 companies
49th percentile
19.2
Low
0 — 13.6
Typical Range
13.6 — 27.8
High
27.8 —
Distribution Statistics
the United States of America
Min 0
30th Percentile 13.6
Median 19.6
70th Percentile 27.8
Max 1 826 183.2

Diamondrock Hospitality Co
Glance View

Market Cap
2.1B USD
Industry
Real Estate

In the bustling realm of real estate investment, DiamondRock Hospitality Company stands out as a firm that has strategically positioned itself within the hospitality sector by focusing on purchasing and operating high-quality hotels in key gateway cities and resort destinations across the United States. The company's business model revolves around acquiring full-service, premium urban hotel properties and iconic resorts, aiming to generate income from lodging operations. By investing in prime properties, often managed under well-recognized brands such as Marriott, Hilton, and Hyatt, DiamondRock enhances the financial performance of its portfolio through savvy asset management and capital improvements, ensuring its properties are poised to attract travelers seeking luxurious experiences. The company's revenue streams are primarily driven by room bookings, as well as food and beverage services, meeting space rentals, and other ancillary services offered within their hotels. Emphasizing a disciplined approach to asset management, DiamondRock identifies opportunities to unlock value within its existing portfolio, including renovation projects and operational efficiencies. By adeptly navigating the dynamics of the hospitality market, DiamondRock aims to achieve consistent cash flow, returns on investment, and bolstered shareholder value. This approach, underpinned by comprehensive market analysis and adaptation to industry trends, positions DiamondRock as a resilient player in the often volatile world of real estate investment trusts within the hospitality sector.

DRH Intrinsic Value
14.11 USD
Undervaluation 27%
Intrinsic Value
Price $10.31
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