Latest Ratios: P/E Ratio 26.2x · EV/EBITDA 15.1x · ROE 544.2%. (1996–2025 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 | $5.4B | $4.4B | $6.7B | $5.7B | $6.2B | $8.7B | $5.9B | $5.8B | $4.1B | $4.4B | $3.2B |
| Enterprise Value | $7.5B | $6.5B | $8.5B | $7.4B | $7.5B | $9.3B | $6.8B | $6.6B | $4.8B | $4.9B | $3.8B |
| P/E Ratio → | 26.20 | 12.06 | 22.90 | 22.35 | 18.80 | 30.29 | 79.06 | 25.99 | 18.84 | 38.42 | 22.78 |
| P/S Ratio | 3.32 | 2.78 | 4.23 | 3.72 | 4.43 | 8.15 | 7.66 | 5.16 | 3.91 | 4.38 | 3.43 |
| P/B Ratio | 30.56 | 24.48 | — | 161.37 | 40.15 | 32.79 | — | — | — | — | — |
| P/FCF | 24.83 | 35.60 | 38.61 | 32.22 | 22.41 | 28.50 | 78.92 | 27.88 | 21.07 | 19.07 | 25.55 |
| P/OCF | 20.00 | 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
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 | — | 4.08 | 5.39 | 4.79 | 5.32 | 8.71 | 8.75 | 5.93 | 4.61 | 4.87 | 4.12 |
| EV / EBITDA | 15.12 | 13.88 | 15.99 | 16.42 | 13.74 | 19.43 | 39.82 | 18.62 | 13.76 | 16.81 | 15.22 |
| EV / EBIT | 16.54 | 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 |
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 | 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% |
| 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% |
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 | 11.76 | 11.76 | — | 47.24 | 8.31 | 4.17 | — | — | — | — | — |
| Debt / EBITDA | 4.53 | 4.53 | 3.53 | 3.73 | 2.37 | 2.31 | 6.36 | 2.49 | 2.16 | 2.49 | 3.35 |
| Net Debt / Equity | — | 11.51 | — | 46.49 | 8.04 | 2.24 | — | — | — | — | — |
| Net Debt / EBITDA | 4.44 | 4.44 | 3.45 | 3.67 | 2.29 | 1.24 | 4.98 | 2.39 | 2.08 | 1.68 | 2.55 |
| 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 |
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 | 0.87 | 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 |
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 | 1.0% | 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% |
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Earnings Yield | 3.8% | 8.3% | 4.4% | 4.5% | 5.3% | 3.3% | 1.3% | 3.8% | 5.3% | 2.6% | 4.4% |
| FCF Yield | 4.0% | 2.8% | 2.6% | 3.1% | 4.5% | 3.5% | 1.3% | 3.6% | 4.7% | 5.2% | 3.9% |
| Buyback Yield | 2.6% | 3.1% | 5.7% | 6.3% | 7.0% | 0.2% | 0.9% | 0.9% | 3.6% | 0.2% | 1.1% |
| Total Shareholder Yield | 3.5% | 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 |
Includes 30+ ratios · 30 years · Updated daily
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Quick answers to the most common questions about buying CHH stock.
Choice Hotels International, Inc.'s current P/E ratio is 26.2x. The historical average is 26.1x. This places it at the 70th percentile of its historical range.
Choice Hotels International, Inc.'s current EV/EBITDA is 15.1x. This enterprise value multiple compares the company's total value (equity + debt - cash) to its EBITDA. The historical average is 15.3x.
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%.
Based on historical data, Choice Hotels International, Inc. is trading at a P/E of 26.2x. This is at the 70th percentile of its historical P/E range. Compare with industry peers and growth rates for a complete picture.
Choice Hotels International, Inc.'s current dividend yield is 0.97% with a payout ratio of 14.5%.
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.
Choice Hotels International, Inc.'s Debt/EBITDA ratio is 4.5x, indicating high leverage. A ratio above 4x may signal elevated financial risk.
Key Metrics
Top Statement Risk
Leverage and stalled top-line growth
Metrics are mathematically derived from official filings.
Premium Multiples Rest on Earnings Recovery
Based on reported figures, CHH trades at 26.2x trailing earnings but only 16.9x forward earnings, a compression that implies the market expects substantial EPS growth ahead while top-line expansion remains near 0.8% year over year.
The gap between trailing and forward P/E suggests investors are pricing in a meaningful earnings rebound, which the 0.62 PEG ratio also supports as relatively undemanding. Against peers, CHH's 15.1x EV/EBITDA sits below Marriott, Hilton and Hyatt, yet its 30.6x price-to-book reflects a shrunken equity base rather than a true valuation discount. The multiple therefore warrants investor monitoring for whether earnings growth can be sustained without revenue acceleration.
Margins Hold Despite Volatile Quarterly Prints
As reported in quarterly statements, CHH's operating margin has ranged from roughly 18% to 32% over recent quarters, with the latest reading near 23%, a band that appears driven more by fund accounting and cost timing than by franchise economics.
Gross margin swings from 23% to 54% are largely a function of how pass-through marketing and reservation funds are recognized, so operating margin is the cleaner gauge of earning power. Net margin of 12.6% in the latest quarter, against peak readings above 40% in one period, suggests one-off items have materially distorted reported earnings. Investors should treat the trend in operating margin rather than any single quarter as the reliable indicator.
Debt Service Comfort Declining Amid Thin Equity
According to recent SEC filings, CHH's debt-to-equity ratio reached 17.3 in the latest quarter, while interest coverage of 3.9x sits well below the 4x to 9x range seen in 2025, suggesting debt service is becoming less comfortable.
Elevated leverage reflects an equity base rebuilt from a thin foundation rather than deliberate deleveraging, and debt-to-EBITDA near 18x indicates limited cushion if fee income softens. Interest coverage compression from above 10x in 2024 to near 4x now may indicate rising financing costs or a larger debt load. Refinancing terms and covenant headroom are not disclosed in the supplied data and warrant further investigation.
Working Capital Timing Drives Cash Conversion
Based on CHH's reported figures, days sales outstanding has moved between roughly 48 and 72 days, while days payable outstanding fluctuates between 41 and 68, meaning the cash conversion cycle swings largely on quarter-specific timing.
The asset turnover of about 0.15 reflects an asset-light franchise model where capital is not tied up in property, so efficiency gains are more about receivables collection than asset utilization. The widening DSO in recent periods may indicate slower franchisee payment or revenue recognition timing rather than deteriorating demand. Because the cash conversion cycle is not consistently reported, its trend should be validated against the underlying filings.
Fee Revenue Sensitivity Could Amplify Leverage Risk
Based on reported figures, the 11.8x to 17.3x debt-to-equity range suggests that a slowdown in royalty fees could pressure earnings more sharply than steady operating margins imply, particularly if strategic M&A requires further balance sheet expansion.
Margins appear resilient on paper, but a fixed debt load against a fee stream exposed to franchisee unit growth and RevPAR could compress coverage faster than the headline profitability indicates. The current ratio of 1.26 offers only modest short-term liquidity cushion against obligations. Investors should monitor whether leverage is reduced through earnings growth or remains elevated, as this determines the downside sensitivity of the equity.