Latest Ratios: P/E Ratio 17.7x · EV/EBITDA 13.1x · 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 | $2.9B | $1.9B | $1.9B | $2.0B | $1.7B | $2.0B | $1.7B | $2.2B | $1.9B | $2.3B | $2.3B |
| Enterprise Value | $4.0B | $3.0B | $3.0B | $3.2B | $3.0B | $3.2B | $2.7B | $3.4B | $2.8B | $3.0B | $3.0B |
| P/E Ratio → | 17.70 | 20.36 | 50.17 | 26.08 | 17.43 | — | — | 12.18 | 21.12 | 24.54 | 20.23 |
| P/S Ratio | 2.50 | 1.67 | 1.69 | 1.85 | 1.74 | 3.59 | 5.56 | 2.39 | 2.17 | 2.62 | 2.59 |
| P/B Ratio | 2.01 | 1.28 | 1.19 | 1.21 | 1.09 | 1.34 | 0.97 | 1.17 | 0.99 | 0.89 | 0.94 |
| P/FCF | 17.69 | 11.51 | 13.36 | 16.82 | — | — | — | — | 17.97 | 21.83 | 20.63 |
| P/OCF | 11.78 | 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 | 13.13 | 10.86 | 11.71 | 8.49 | 10.98 | 43.55 | — | 10.05 | 13.39 | 12.68 | 11.78 |
| EV / EBIT | 24.66 | 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 | — | 3.76 | 4.67 | 3.92 | 3.61 |
| 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 | — | 3.40 | 4.46 | 3.16 | 2.66 |
| 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 | 3.4% | 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% |
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Earnings Yield | 5.6% | 4.9% | 2.0% | 3.8% | 5.7% | — | — | 8.2% | 4.7% | 4.1% | 4.9% |
| FCF Yield | 5.7% | 8.7% | 7.5% | 5.9% | — | — | — | — | 5.6% | 4.6% | 4.8% |
| Buyback Yield | 5.4% | 8.4% | 1.7% | 0.3% | 0.8% | 0.1% | 0.7% | 1.9% | 1.8% | 0.0% | 0.3% |
| Total Shareholder Yield | 8.8% | 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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10-year return with dividends reinvested.
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Quick answers to the most common questions about buying DRH stock.
DiamondRock Hospitality Company's current P/E ratio is 17.7x. The historical average is 24.6x. This places it at the 21th percentile of its historical range.
DiamondRock Hospitality Company's current EV/EBITDA is 13.1x. This enterprise value multiple compares the company's total value (equity + debt - cash) to its EBITDA. The historical average is 15.6x.
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 17.7x. This is at the 21th 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 3.36% 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
Volatile FFO coverage against dividend
Metrics are mathematically derived from official filings.
Discount Multiple Masks Earnings Volatility
Based on reported figures, DRH trades at a P/FFO near 7.5 across recent quarters, a level that appears low for a hotel REIT and may reflect investor skepticism about the durability of the recent FFO step-up.
The P/FFO multiple has held in a tight 7.0 to 7.9 band across the ten-quarter series, which suggests the market is pricing the shares on trailing cash earnings rather than the Q2 2026 spike. The reported P/E of 31.91 is distorted by real estate depreciation and should not be used as a valuation anchor for this REIT. Investors should monitor whether FFO per share can hold above recent run-rate levels before the discount to peers narrows.
Operating Leverage Drives Uneven Property Margins
As reported in the ratio series, DRH's NOI margin ranged from roughly 17% to 94% across quarters, a spread that appears driven by the timing of property-level cost recognition rather than steady operating change.
The wide NOI margin dispersion indicates that quarterly figures are not reliable standalone indicators of property economics for this portfolio. FFO growth has been volatile, swinging from a 54.6% decline to a 73.0% gain, which suggests earnings are more sensitive to RevPAR swings than to structural margin improvement. A trailing-twelve-month view of NOI margin would better separate organic performance from timing effects.
Payout Coverage Swings With Quarterly AFFO
Based on DRH's reported figures, the FFO payout ratio moved between roughly 12% and 122% over ten quarters, with the Q1 2025 reading above 100% indicating dividends exceeded FFO in that period.
The payout ratio dispersion implies that the dividend is covered in most quarters but not consistently, and the Q4 2024 AFFO was negative, which leaves the distribution dependent on prior earnings or balance sheet liquidity in that quarter. The Q3 2026 payout of 70.7% on a weaker FFO print warrants monitoring. Investors should assess the dividend against trailing AFFO rather than any single quarter.
Conservative Leverage With Stable Coverage
According to reported balance sheet data, DRH's debt-to-equity has remained between roughly 0.70 and 0.82, with interest coverage fluctuating widely from 0.44 to 7.40, which may indicate sensitivity to quarterly earnings timing.
Leverage appears moderate and stable over the period, but quarterly interest coverage is distorted by volatile operating income and should be read on a trailing basis. The reported D/E ratio uses book equity, which understates leverage relative to gross asset value, so debt-to-gross-assets would be the more appropriate measure for a REIT. Investors should monitor debt maturity and refinancing exposure, which are not fully captured in the supplied data.
Lower Leverage Versus Mixed Peer Profitability
Based on peer data, DRH's ROE and net margin trail stronger peers like Ryman and Apple Hospitality, while its dividend yield of 3.4% sits below Park and Summit, suggesting a valuation discount tied to earnings quality.
DRH's debt-to-equity near 0.8 is conservative relative to Park at 1.38 and Ryman at 3.54, which suggests a balance sheet that gives room for growth but also limits return on equity. Its EV/EBITDA of 14.51 sits within the peer range, indicating the market is not pricing a large premium or discount on operating earnings. The gap in net margin versus Apple Hospitality suggests operational efficiency, not just capital structure, drives the valuation difference.
P/E Misapplied Across Depreciation-Heavy Assets
The most commonly misapplied ratio for DRH is the standard P/E, which at 31.91 is inflated by real estate depreciation and obscures the cash earnings that drive REIT valuation.
Applying P/E to a hotel REIT treats depreciation as an economic cost, which understates cash earnings and produces a misleading premium signal relative to the 7 to 8 times P/FFO the shares actually trade at. Investors should instead use P/FFO or P/AFFO, adjusted for maintenance capex and FF&E reserves, to reflect the cash generated by the portfolio. Using P/E would suggest DRH is expensive when the cash-based multiple points to a discount.