Latest Ratios: P/E Ratio 27.8x · EV/EBITDA 13.2x · ROE 6.6%. (2004–2025 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 | $2.5B | $1.9B | $1.9B | $2.0B | $1.7B | $2.0B | $1.7B | $2.2B | $1.9B | $2.3B | $2.3B |
| Enterprise Value | $3.6B | $3.0B | $3.0B | $3.2B | $3.0B | $3.2B | $2.7B | $3.4B | $2.8B | $3.0B | $3.0B |
| P/E Ratio → | 27.82 | 20.36 | 50.17 | 26.08 | 17.43 | — | — | 12.18 | 21.12 | 24.54 | 20.23 |
| P/S Ratio | 2.23 | 1.67 | 1.69 | 1.85 | 1.74 | 3.59 | 5.56 | 2.39 | 2.17 | 2.62 | 2.59 |
| P/B Ratio | 1.75 | 1.28 | 1.19 | 1.21 | 1.09 | 1.34 | 0.97 | 1.17 | 0.99 | 0.89 | 0.94 |
| P/FCF | 15.44 | 11.51 | 13.36 | 16.82 | — | — | — | — | 17.97 | 21.83 | 20.63 |
| P/OCF | 10.27 | 7.66 | 8.50 | 8.39 | 8.47 | — | — | 11.62 | 8.53 | 11.12 | 10.79 |
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 | 2.66 | 2.94 | 2.97 | 5.60 | 9.03 | 3.62 | 3.25 | 3.48 | 3.35 |
| EV / EBITDA | 13.17 | 10.86 | 11.71 | 8.49 | 10.98 | 43.55 | — | 10.11 | 3.31 | 3.48 | 3.35 |
| EV / EBIT | 22.38 | 18.47 | 26.08 | 20.80 | 19.57 | — | — | 33.59 | 21.28 | 21.55 | 17.78 |
| EV / FCF | — | 18.41 | 21.05 | 26.67 | — | — | — | — | 26.94 | 29.07 | 26.64 |
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 | 55.2% | 55.2% | 54.7% | 27.3% | 56.8% | 49.7% | -13.7% | 26.4% | 30.6% | 33.2% | 34.4% |
| Operating Margin | 14.4% | 14.4% | 12.7% | 24.3% | 16.2% | -5.3% | — | 23.4% | 12.1% | 16.1% | 17.6% |
| Net Profit Margin | 9.1% | 9.1% | 4.3% | 8.0% | 10.9% | -34.3% | -131.7% | 19.6% | 10.2% | 10.6% | 12.8% |
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| ROE | 6.6% | 6.6% | 3.0% | 5.3% | 7.0% | -12.0% | -21.7% | 9.6% | 4.0% | 3.7% | 5.3% |
| ROA | 3.3% | 3.3% | 1.5% | 2.7% | 3.5% | -6.4% | -12.0% | 5.5% | 2.8% | 3.0% | 3.6% |
| ROIC | 4.6% | 4.6% | 3.9% | 6.9% | 4.4% | -0.8% | — | 5.6% | 2.6% | 3.3% | 4.0% |
| ROCE | 6.0% | 6.0% | 5.0% | 9.0% | 5.9% | -1.1% | — | 7.3% | 3.7% | 5.1% | 5.5% |
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 | 0.81 | 0.81 | 0.74 | 0.78 | 0.81 | 0.77 | 0.67 | 0.66 | 0.52 | 0.37 | 0.37 |
| Debt / EBITDA | 4.31 | 4.31 | 4.60 | 3.46 | 4.79 | 16.13 | — | 3.78 | 1.15 | 1.08 | 1.03 |
| Net Debt / Equity | — | 0.77 | 0.69 | 0.71 | 0.77 | 0.75 | 0.61 | 0.60 | 0.49 | 0.30 | 0.27 |
| Net Debt / EBITDA | 4.07 | 4.07 | 4.28 | 3.14 | 4.54 | 15.60 | — | 3.41 | 1.10 | 0.87 | 0.76 |
| Debt / FCF | — | 6.90 | 7.70 | 9.85 | — | — | — | — | 8.97 | 7.24 | 6.01 |
| Interest Coverage | 2.57 | 2.57 | 1.76 | 2.34 | 3.83 | -4.19 | -6.82 | 2.17 | 3.22 | 3.65 | 4.05 |
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 | 0.19 | 0.19 | 0.94 | 1.04 | 0.90 | 0.55 | 0.62 | 0.87 | 0.57 | 1.16 | 1.30 |
| Quick Ratio | 0.19 | 0.19 | 0.94 | 1.04 | 0.90 | 0.55 | 0.62 | 0.87 | 0.43 | 1.04 | 1.15 |
| Cash Ratio | 0.19 | 0.19 | 0.21 | 0.41 | 0.21 | 0.11 | 0.34 | 0.39 | 0.13 | 0.56 | 0.78 |
| Asset Turnover | — | 0.37 | 0.36 | 0.33 | 0.31 | 0.19 | 0.10 | 0.27 | 0.27 | 0.28 | 0.29 |
| Inventory Turnover | — | — | — | — | — | — | — | — | 12.56 | 14.46 | 12.76 |
| 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 | 3.9% | 5.3% | 1.3% | 1.6% | 0.4% | 0.0% | 1.5% | 4.5% | 5.5% | 4.4% | 4.3% |
| Payout Ratio | 96.9% | 96.9% | 53.3% | 37.0% | 5.9% | — | — | 55.6% | 117.0% | 109.4% | 87.8% |
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Earnings Yield | 3.6% | 4.9% | 2.0% | 3.8% | 5.7% | — | — | 8.2% | 4.7% | 4.1% | 4.9% |
| FCF Yield | 6.5% | 8.7% | 7.5% | 5.9% | — | — | — | — | 5.6% | 4.6% | 4.8% |
| Buyback Yield | 6.2% | 8.4% | 1.7% | 0.3% | 0.8% | 0.1% | 0.7% | 1.9% | 1.8% | 0.0% | 0.3% |
| Total Shareholder Yield | 10.1% | 13.6% | 3.1% | 1.9% | 1.1% | 0.1% | 2.2% | 6.5% | 7.3% | 4.4% | 4.6% |
| Shares Outstanding | — | $208M | $211M | $212M | $213M | $212M | $202M | $203M | $206M | $202M | $202M |
Includes 30+ ratios · 22 years · Updated daily
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Quick answers to the most common questions about buying DRH stock.
DiamondRock Hospitality Company's current P/E ratio is 27.8x. The historical average is 24.6x. This places it at the 79th percentile of its historical range.
DiamondRock Hospitality Company's current EV/EBITDA is 13.2x. This enterprise value multiple compares the company's total value (equity + debt - cash) to its EBITDA. The historical average is 14.3x.
DiamondRock Hospitality Company's return on equity (ROE) is 6.6%. The historical average is 1.8%.
Based on historical data, DiamondRock Hospitality Company is trading at a P/E of 27.8x. This is at the 79th percentile of its historical P/E range. Compare with industry peers and growth rates for a complete picture.
DiamondRock Hospitality Company's current dividend yield is 3.86% with a payout ratio of 96.9%.
DiamondRock Hospitality Company has 55.2% gross margin and 14.4% operating margin. Operating margin between 10-20% is typical for established companies.
DiamondRock Hospitality Company's Debt/EBITDA ratio is 4.3x, indicating high leverage. A ratio above 4x may signal elevated financial risk.
Key Metrics
Top Statement Risk
Revenue growth remains negative
Metrics are mathematically derived from official filings.
P/FFO Compression Signals Undervaluation
DRH's P/FFO has compressed to 7.43x in Q2 2026 from 7.89x a year earlier, according to recent SEC filings, suggesting the market may be undervaluing its earnings power relative to historical norms.
The P/FFO multiple has declined steadily over the past year, from 7.89x in Q3 2024 to 7.43x in Q2 2026, even as FFO per share surged 73% year-over-year. This compression implies that the market is not fully crediting the operational leverage demonstrated in the latest quarter. With an implied cap rate derived from NOI and enterprise value, the portfolio appears to be trading at a discount to private market transaction cap rates, which may indicate upside potential if the earnings beat proves sustainable.
NOI Margin Volatility Masks Underlying Strength
DRH's NOI margin swung from 21.5% in Q2 2025 to 94.1% in Q4 2025, as reported in financial statements, reflecting extreme seasonality and cost variability that complicates trend analysis.
The wide quarterly swings in NOI margin—ranging from 17.3% to 94.1%—are characteristic of hotel REITs with significant fixed costs and seasonal demand patterns. The Q2 2026 margin of 17.3% appears low relative to the prior year's 21.5%, but this may be distorted by renovation disruption or timing of expenses. The 7% RevPAR growth in Q2 2026, coupled with hotel expense growth held to just 1.8%, suggests strong flow-through, yet the TTM revenue contraction of -0.8% indicates that the portfolio is still cycling through softness in certain markets. Investors should monitor whether the margin volatility reflects genuine operational instability or merely seasonal noise.
Payout Ratio Plunges on FFO Surge
DRH's FFO payout ratio dropped to 15.5% in Q2 2026 from 24.2% a year earlier, based on reported figures, indicating a substantial margin of safety for the dividend.
The FFO payout ratio has improved dramatically, from 122.2% in Q1 2025 (when FFO was depressed) to 15.5% in Q2 2026, reflecting both higher FFO and a stable dividend. AFFO coverage is even stronger, with AFFO per share of $0.49 covering the dividend multiple times. This suggests that DRH is retaining a significant portion of its cash flow, which could be used for debt reduction, acquisitions, or special dividends. However, the extreme volatility in payout ratios—from 122% to 15%—highlights the cyclicality of hotel earnings, and investors should ensure the dividend is sustainable through a downturn.
Conservative Leverage with Improving Coverage
DRH's debt-to-equity ratio of 0.78 in Q2 2026, as reported in financial statements, remains conservative relative to peers, while interest coverage improved to 7.4x from 3.8x a year earlier.
The balance sheet appears conservatively positioned, with debt-to-equity at 0.78, lower than peers like PK (1.38) and RHP (3.54). Interest coverage has strengthened significantly, from 2.66x in Q2 2024 to 7.40x in Q2 2026, driven by higher EBITDA and stable debt levels. This suggests ample capacity to service debt even if rates rise. However, the low leverage may indicate that DRH is under-utilizing its capital structure to drive growth, and the recent cash build to $106M could signal a pending acquisition or a cautious stance. Investors should monitor the maturity profile and the proportion of fixed-rate debt, as a rising rate environment could pressure floating-rate exposure.
Occupancy Stability Amidst Mixed Demand
DRH's portfolio quality appears stable with consistent property values, but the Q2 2026 NOI margin of 17.3% suggests operational efficiency may be strained, according to recent SEC filings.
The property, plant, and equipment balance remained constant at $2.7B over the last four quarters, indicating stable asset quality and no major impairments. However, the low NOI margin in Q2 2026, despite strong RevPAR growth, raises questions about cost control, particularly in labor and insurance. The portfolio's concentration in gateway markets like Boston and South Florida provides diversification but also exposes DRH to localized economic downturns. The 'barbell' strategy of branded urban hotels and independent lifestyle resorts appears to be functioning, but the TTM revenue contraction suggests that some assets may be underperforming. Investors should monitor same-store NOI growth and occupancy trends to assess whether the portfolio is gaining or losing competitive ground.
P/E Misleads Due to Depreciation
The standard P/E ratio of 29.14x for DRH is distorted by non-cash depreciation charges, as reported in financial statements, making P/FFO the more appropriate valuation metric.
For hotel REITs, GAAP earnings are heavily impacted by depreciation, which is a non-cash charge that does not reflect the actual cash-generating ability of the properties. DRH's P/E of 29.14x appears expensive, but its P/FFO of 7.43x indicates that the market is pricing the stock at a reasonable multiple of cash earnings. Investors should focus on P/FFO and P/AFFO, which adjust for depreciation and other non-cash items, to get a clearer picture of valuation. Additionally, the debt-to-equity ratio using book value can be misleading; using gross assets provides a more accurate leverage measure. The market's overreliance on P/E may cause it to undervalue DRH's true earnings power.