Choice Hotels International, Inc. (CHH) Financial Ratios
30 years of historical data (1996–2025) · Consumer Cyclical · Travel Lodging
EV/EBITDA
↓
12.22
↓-22% vs avg
5yr avg: 15.71
30Y Low4.1·High39.8
P/FCF
↑
38.61
↑+23% vs avg
5yr avg: 31.47
30Y Low10.5·High78.9
P/B Ratio
↓
27.03
↓-58% vs avg
5yr avg: 64.70
30Y Low6.6·High161.4
ROE
↑
544.2%
↓+82% vs avg
5yr avg: 299.0%
30Y Low24%·High272%
Debt/EBITDA
↑
3.78
+18% vs avg
5yr avg: 3.21
30Y Low0.7·High6.4
Percentile shows where the current value sits in 30-year historical distribution. Sparklines show 5-year trend.
CHH Valuation Multiples
Price-based multiples — how expensive the stock is relative to earnings, sales, book value, and cash flow
Choice Hotels International, Inc. trades at 13.3x earnings, 37% below its 5-year average of 21.3x, sitting at the 3rd percentile of its historical range. Compared to the Consumer Cyclical sector median P/E of 19.6x, the stock trades at a discount of 32%. On a free-cash-flow basis, the stock trades at 38.6x P/FCF, 23% above the 5-year average of 31.5x.
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Market Cap | $4.8B | $4.4B | $6.7B | $5.7B | $6.2B | $8.7B | $5.9B | $5.8B | $4.1B | $4.4B | $3.2B |
| Enterprise Value | $6.9B | $6.5B | $8.5B | $7.4B | $7.5B | $9.3B | $6.8B | $6.6B | $4.8B | $4.9B | $3.8B |
| P/E Ratio → | 13.31 | 12.06 | 22.90 | 22.35 | 18.80 | 30.29 | 79.06 | 25.99 | 18.84 | 38.42 | 22.78 |
| P/S Ratio | 3.01 | 2.78 | 4.23 | 3.72 | 4.43 | 8.15 | 7.66 | 5.16 | 3.91 | 4.38 | 3.43 |
| P/B Ratio | 27.03 | 24.48 | — | 161.37 | 40.15 | 32.79 | — | — | — | — | — |
| P/FCF | 38.61 | 35.60 | 38.61 | 32.22 | 22.41 | 28.50 | 78.92 | 27.88 | 21.07 | 19.07 | 25.55 |
| P/OCF | 17.79 | 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
CHH EV Ratios
Enterprise-value multiples — capital-structure-neutral measures of total business value
Choice Hotels International, Inc.'s enterprise value stands at 12.2x EBITDA, 22% below its 5-year average of 15.7x. The Consumer Cyclical sector median is 11.4x, placing the stock at a 8% premium on an enterprise-value basis.
| 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 | 12.22 | 11.56 | 15.99 | 17.84 | 13.74 | 19.43 | 39.82 | 6.01 | 4.63 | 5.35 | 4.12 |
| EV / EBIT | 15.22 | 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 |
CHH Profitability
Margins and return-on-capital ratios measuring operating efficiency
Choice Hotels International, Inc. earns an operating margin of 28.4%, significantly above the Consumer Cyclical sector average of 2.9%. Operating margins have expanded from 24.3% to 28.4% over the past 3 years, signaling improving operational efficiency. Return on equity of 544.2% is exceptionally high, though this is partly amplified by negative book value driven by aggressive share buybacks — well above the sector median of 5.8%. ROIC of 16.7% represents solid returns on invested capital versus a sector median of 5.8%.
Margins
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% |
Return on Capital
| 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% |
CHH Leverage & Debt
Solvency and debt-coverage ratios — lower is generally safer
Choice Hotels International, Inc. carries a Debt/EBITDA ratio of 3.8x, which is moderately leveraged (12% below the sector average of 4.3x). Net debt stands at $2.1B ($2.1B total debt minus $45M cash). Interest coverage of 6.0x is adequate, though a cyclical earnings downturn could tighten the margin of safety.
| 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 |
CHH Liquidity & Efficiency
Short-term solvency ratios and asset-utilisation metrics
The current ratio of 0.87x is below 1.0, meaning current liabilities exceed current assets. The current ratio has improved from 0.31x to 0.87x over the past 3 years.
| 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 |
CHH Shareholder Yields
Earnings, FCF, buyback, and dividend yields — total returns to shareholders
Choice Hotels International, Inc. returns 4.0% to shareholders annually — split between a 1.1% dividend yield and 2.9% buyback yield. The payout ratio of 14.5% is conservative, leaving significant room for dividend growth or reinvestment. The earnings yield of 7.5% (inverse of P/E) provides a useful comparison to bond yields when assessing the stock's relative attractiveness to fixed income.
Dividends
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 | 1.1% | 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% |
Total Shareholder Return Metrics
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Earnings Yield | 7.5% | 8.3% | 4.4% | 4.5% | 5.3% | 3.3% | 1.3% | 3.8% | 5.3% | 2.6% | 4.4% |
| FCF Yield | 2.6% | 2.8% | 2.6% | 3.1% | 4.5% | 3.5% | 1.3% | 3.6% | 4.7% | 5.2% | 3.9% |
| Buyback Yield | 2.9% | 3.1% | 5.7% | 6.3% | 7.0% | 0.2% | 0.9% | 0.9% | 3.6% | 0.2% | 1.1% |
| Total Shareholder Yield | 4.0% | 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 |
Peer Comparison
Compare CHH with 10 similar companies in its peer group
| Company | Market Cap | P/E | EV/EBITDA | P/FCF | Gross Margin | Op Margin | ROE | ROIC | Debt/EBITDA |
|---|---|---|---|---|---|---|---|---|---|
 CHHYou | $5B | 13.3 | 12.2 | 38.6 | 40.9% | 28.4% | 544.2% | 16.7% | 3.8 |
 MAR | $95B | 37.8 | 25.2 | 29.6 | 21.3% | 15.8% | — | 25.0% | 3.8 |
 HLT | $73B | 52.5 | 30.6 | 36.1 | 41.1% | 22.4% | — | 24.7% | 5.5 |
 WH | $6B | 33.7 | 19.8 | 19.5 | 58.9% | 28.4% | 34.5% | 9.4% | 6.5 |
 IHG | $22B | 29.9 | 18.9 | 25.2 | 32.0% | 23.1% | — | 159.6% | 3.4 |
 H | $16B | -313.6 | 22.8 | 101.7 | 11.2% | 7.8% | -1.4% | 5.8% | 5.4 |
 APLE | $3B | 18.9 | 11.4 | 11.7 | 6.4% | 17.7% | 5.5% | 3.9% | 4.0 |
 PK | $2B | -7.9 | 11.2 | 22.1 | 2.0% | 8.9% | -8.5% | 2.2% | 7.6 |
 RHP | $7B | 29.4 | 14.1 | 30.1 | 9.9% | 18.9% | 22.7% | 8.2% | 5.6 |
 SHO | $2B | 242.3 | 13.2 | 24.7 | 4.7% | 7.8% | 1.2% | 2.0% | 4.4 |
 DRH | $2B | 24.3 | 12.0 | 13.4 | 55.2% | 14.4% | 6.6% | 4.6% | 4.3 |
| Consumer Cyclical Median | — | 19.6 | 11.4 | 14.9 | 37.9% | 2.9% | 5.8% | 5.8% | 4.3 |
Peer selection based on competitive and market overlap. Compare multiple stocks →
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Includes 30+ ratios · 30 years · Updated daily
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Start ComparisonCHH — Frequently Asked Questions
Quick answers to the most common questions about buying CHH stock.
What is Choice Hotels International, Inc.'s P/E ratio?
Choice Hotels International, Inc.'s current P/E ratio is 13.3x. The historical average is 26.1x. This places it at the 3th percentile of its historical range.
What is Choice Hotels International, Inc.'s EV/EBITDA?
Choice Hotels International, Inc.'s current EV/EBITDA is 12.2x. This enterprise value multiple compares the company's total value (equity + debt - cash) to its EBITDA. The historical average is 13.8x.
What is Choice Hotels International, Inc.'s ROE?
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%.
Is CHH stock overvalued?
Based on historical data, Choice Hotels International, Inc. is trading at a P/E of 13.3x. This is at the 3th percentile of its historical P/E range. Compare with industry peers and growth rates for a complete picture.
What is Choice Hotels International, Inc.'s dividend yield?
Choice Hotels International, Inc.'s current dividend yield is 1.09% with a payout ratio of 14.5%.
What are Choice Hotels International, Inc.'s profit margins?
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.
How much debt does Choice Hotels International, Inc. have?
Choice Hotels International, Inc.'s Debt/EBITDA ratio is 3.8x, indicating high leverage. A ratio between 2-4x is manageable but warrants monitoring.