DiamondRock Hospitality Company (DRH) Financial Ratios
22 years of historical data (2004–2025) · Real Estate · REIT - Hotel & Motel
EV/EBITDA
↓
11.95
↓-30% vs avg
5yr avg: 17.12
30Y Low3.3·High43.5
P/FCF
↓
13.37
-4% vs avg
5yr avg: 13.89
30Y Low7.3·High62.1
P/B Ratio
↓
1.52
↑+24% vs avg
5yr avg: 1.22
30Y Low0.5·High1.6
ROE
↑
6.6%
↓+235% vs avg
5yr avg: 2.0%
30Y Low-22%·High10%
Debt/EBITDA
↓
4.31
↓-35% vs avg
5yr avg: 6.66
30Y Low1.0·High16.1
Percentile shows where the current value sits in 30-year historical distribution. Sparklines show 5-year trend.
DRH Valuation Multiples
Price-based multiples — how expensive the stock is relative to earnings, sales, book value, and cash flow
DiamondRock Hospitality Company trades at 24.2x earnings, 15% below its 5-year average of 28.5x, sitting at the 64th percentile of its historical range. This is roughly in line with the Real Estate sector median P/E of 24.1x. On a free-cash-flow basis, the stock trades at 13.4x P/FCF, roughly in line with the 5-year average of 13.9x.
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Market Cap | $2.2B | $1.9B | $1.9B | $2.0B | $1.7B | $2.0B | $1.7B | $2.2B | $1.9B | $2.3B | $2.3B |
| Enterprise Value | $3.3B | $3.0B | $3.0B | $3.2B | $3.0B | $3.2B | $2.7B | $3.4B | $2.8B | $3.0B | $3.0B |
| P/E Ratio → | 24.18 | 20.36 | 50.17 | 26.08 | 17.43 | — | — | 12.18 | 21.12 | 24.54 | 20.23 |
| P/S Ratio | 1.93 | 1.67 | 1.69 | 1.85 | 1.74 | 3.59 | 5.56 | 2.39 | 2.17 | 2.62 | 2.59 |
| P/B Ratio | 1.52 | 1.28 | 1.19 | 1.21 | 1.09 | 1.34 | 0.97 | 1.17 | 0.99 | 0.89 | 0.94 |
| P/FCF | 13.37 | 11.51 | 13.36 | 16.82 | — | — | — | — | 17.97 | 21.83 | 20.63 |
| P/OCF | 8.90 | 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
DRH EV Ratios
Enterprise-value multiples — capital-structure-neutral measures of total business value
DiamondRock Hospitality Company's enterprise value stands at 12.0x EBITDA, 30% below its 5-year average of 17.1x. The Real Estate sector median is 16.7x, placing the stock at a 28% discount 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 | — | 2.66 | 2.66 | 2.94 | 2.97 | 5.60 | 9.03 | 3.62 | 3.25 | 3.48 | 3.35 |
| EV / EBITDA | 11.95 | 10.86 | 11.71 | 8.49 | 10.98 | 43.55 | — | 10.11 | 3.31 | 3.48 | 3.35 |
| EV / EBIT | 20.31 | 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 |
DRH Profitability
Margins and return-on-capital ratios measuring operating efficiency
DiamondRock Hospitality Company earns an operating margin of 14.4%, below the Real Estate sector average of 26.0%. Operating margins have compressed from 24.3% to 14.4% over the past 3 years, signaling potential cost pressures or competitive headwinds. ROE of 6.6% is modest. ROIC of 4.6% represents below-average returns on invested capital.
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 | 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% |
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 | 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% |
DRH Leverage & Debt
Solvency and debt-coverage ratios — lower is generally safer
DiamondRock Hospitality Company carries a Debt/EBITDA ratio of 4.3x, which is highly leveraged (45% below the sector average of 7.9x). Net debt stands at $1.1B ($1.2B total debt minus $68M cash). Interest coverage of just 2.6x is concerning — the company has limited headroom to absorb earnings volatility before struggling with debt service.
| 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 |
DRH Liquidity & Efficiency
Short-term solvency ratios and asset-utilisation metrics
The current ratio of 0.19x is below 1.0, meaning current liabilities exceed current assets. The current ratio has declined from 1.04x to 0.19x 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 | 0.19 | 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 | — | — | — | — | — | — | — | — | — | — | — |
DRH Shareholder Yields
Earnings, FCF, buyback, and dividend yields — total returns to shareholders
DiamondRock Hospitality Company returns 11.6% to shareholders annually — split between a 4.4% dividend yield and 7.2% buyback yield. The payout ratio of 96.9% is elevated — while still covered by earnings, there is limited headroom for dividend increases. The earnings yield of 4.1% (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 | 4.4% | 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% |
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 | 4.1% | 4.9% | 2.0% | 3.8% | 5.7% | — | — | 8.2% | 4.7% | 4.1% | 4.9% |
| FCF Yield | 7.5% | 8.7% | 7.5% | 5.9% | — | — | — | — | 5.6% | 4.6% | 4.8% |
| Buyback Yield | 7.2% | 8.4% | 1.7% | 0.3% | 0.8% | 0.1% | 0.7% | 1.9% | 1.8% | 0.0% | 0.3% |
| Total Shareholder Yield | 11.6% | 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 |
Peer Comparison
Compare DRH 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 |
|---|---|---|---|---|---|---|---|---|---|
 DRHYou | $2B | 24.2 | 12.0 | 13.4 | 55.2% | 14.4% | 6.6% | 4.6% | 4.3 |
 PK | $2B | -8.0 | 11.2 | 22.4 | 2.0% | 8.9% | -8.5% | 2.2% | 7.6 |
 RHP | $7B | 28.7 | 13.9 | 29.4 | 9.9% | 18.9% | 22.7% | 8.2% | 5.6 |
 SHO | $2B | 236.9 | 13.0 | 24.1 | 4.7% | 7.8% | 1.2% | 2.0% | 4.4 |
 XHR | $2B | 26.1 | 11.9 | 17.2 | 1.5% | 9.9% | 5.1% | 3.2% | 6.0 |
 APLE | $3B | 18.4 | 11.2 | 11.4 | 6.4% | 17.7% | 5.5% | 3.9% | 4.0 |
 INN | $573M | -24.0 | 9.3 | 7.8 | -7.7% | 8.4% | -0.6% | 1.7% | 6.7 |
 HST | $15B | 21.5 | 12.1 | 15.4 | 53.4% | 15.4% | 10.2% | 5.9% | 3.4 |
 PEB | $2B | -15.9 | 12.9 | 10.7 | -6.7% | 5.1% | -2.5% | 1.1% | 8.1 |
 BHR | $169M | -3.2 | 5.5 | 2.5 | 21.1% | 17.7% | -0.2% | 5.1% | 5.4 |
 CLDT | $420M | 63.7 | 8.6 | 10.6 | 3.5% | 9.0% | 1.9% | 1.7% | 4.2 |
| Real Estate Median | — | 24.1 | 16.7 | 15.4 | 52.1% | 26.0% | 3.5% | 3.0% | 7.9 |
Peer selection based on competitive and market overlap. Compare multiple stocks →
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Includes 30+ ratios · 22 years · Updated daily
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Start ComparisonDRH — Frequently Asked Questions
Quick answers to the most common questions about buying DRH stock.
What is DiamondRock Hospitality Company's P/E ratio?
DiamondRock Hospitality Company's current P/E ratio is 24.2x. The historical average is 24.6x. This places it at the 64th percentile of its historical range.
What is DiamondRock Hospitality Company's EV/EBITDA?
DiamondRock Hospitality Company's current EV/EBITDA is 12.0x. This enterprise value multiple compares the company's total value (equity + debt - cash) to its EBITDA. The historical average is 14.3x.
What is DiamondRock Hospitality Company's ROE?
DiamondRock Hospitality Company's return on equity (ROE) is 6.6%. The historical average is 1.8%.
Is DRH stock overvalued?
Based on historical data, DiamondRock Hospitality Company is trading at a P/E of 24.2x. This is at the 64th percentile of its historical P/E range. Compare with industry peers and growth rates for a complete picture.
What is DiamondRock Hospitality Company's dividend yield?
DiamondRock Hospitality Company's current dividend yield is 4.44% with a payout ratio of 96.9%.
What are DiamondRock Hospitality Company's profit margins?
DiamondRock Hospitality Company has 55.2% gross margin and 14.4% operating margin. Operating margin between 10-20% is typical for established companies.
How much debt does DiamondRock Hospitality Company have?
DiamondRock Hospitality Company's Debt/EBITDA ratio is 4.3x, indicating high leverage. A ratio above 4x may signal elevated financial risk.