Sunstone Hotel Investors, Inc. (SHO) Financial Ratios
25 years of historical data (2001–2025) · Real Estate · REIT - Hotel & Motel
EV/EBITDA
↓
13.18
↓-46% vs avg
5yr avg: 24.24
30Y Low2.5·High72.4
P/FCF
↓
24.68
↑+36% vs avg
5yr avg: 18.18
30Y Low7.9·High26.6
P/B Ratio
↓
1.02
-1% vs avg
5yr avg: 1.03
30Y Low0.4·High1.5
ROE
↓
1.2%
↑-67% vs avg
5yr avg: 3.7%
30Y Low-30%·High15%
Debt/EBITDA
↓
4.42
↓-27% vs avg
5yr avg: 6.07
30Y Low0.8·High14.7
Percentile shows where the current value sits in 30-year historical distribution. Sparklines show 5-year trend.
SHO Valuation Multiples
Price-based multiples — how expensive the stock is relative to earnings, sales, book value, and cash flow
Sunstone Hotel Investors, Inc. trades at 242.3x earnings, 196% above its 5-year average of 81.8x, sitting at the 100th percentile of its historical range. Compared to the Real Estate sector median P/E of 24.5x, the stock trades at a premium of 891%. On a free-cash-flow basis, the stock trades at 24.7x P/FCF, 36% above the 5-year average of 18.2x.
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Market Cap | $1.9B | $1.7B | $2.4B | $2.2B | $2.1B | $2.5B | $2.4B | $3.1B | $2.9B | $3.7B | $3.3B |
| Enterprise Value | $2.8B | $2.6B | $3.1B | $2.6B | $2.8B | $3.1B | $2.9B | $3.4B | $3.1B | $4.2B | $3.9B |
| P/E Ratio → | 242.32 | 211.35 | 84.57 | 11.54 | 28.41 | 73.31 | — | 25.78 | 11.72 | 28.02 | 27.73 |
| P/S Ratio | 2.02 | 1.81 | 2.65 | 2.24 | 2.25 | 4.98 | 9.13 | 2.82 | 2.54 | 3.07 | 2.76 |
| P/B Ratio | 1.02 | 0.89 | 1.14 | 1.02 | 0.99 | 1.13 | 1.17 | 1.20 | 1.08 | 1.42 | 1.29 |
| P/FCF | 24.68 | 22.07 | 14.08 | 11.15 | 25.42 | — | — | 10.80 | 10.25 | 18.74 | 26.60 |
| P/OCF | 10.69 | 9.56 | 14.08 | 11.15 | 9.81 | 89.43 | — | 10.80 | 9.63 | 11.80 | 10.73 |
P/E links to full P/E history page with 30-year chart
SHO EV Ratios
Enterprise-value multiples — capital-structure-neutral measures of total business value
Sunstone Hotel Investors, Inc.'s enterprise value stands at 13.2x EBITDA, 46% below its 5-year average of 24.2x. The Real Estate sector median is 16.7x, placing the stock at a 21% 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 | 3.47 | 2.65 | 3.05 | 5.99 | 10.71 | 3.01 | 2.70 | 3.51 | 3.24 |
| EV / EBITDA | 13.18 | 12.20 | 15.49 | 10.64 | 12.34 | 70.56 | — | 2.95 | 2.46 | 3.64 | 3.25 |
| EV / EBIT | 36.86 | 32.84 | 35.03 | 10.04 | 22.67 | 47.07 | — | 17.32 | 10.26 | 22.33 | 20.49 |
| EV / FCF | — | 32.44 | 18.46 | 13.19 | 34.46 | — | — | 11.55 | 10.93 | 21.41 | 31.29 |
SHO Profitability
Margins and return-on-capital ratios measuring operating efficiency
Sunstone Hotel Investors, Inc. earns an operating margin of 7.8%, below the Real Estate sector average of 26.0%. Operating margins have compressed from 12.0% to 7.8% over the past 3 years, signaling potential cost pressures or competitive headwinds. ROE of 1.2% is modest. ROIC of 2.0% 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 | 4.7% | 4.7% | 46.6% | 48.3% | 49.1% | 40.6% | 6.1% | 52.4% | 52.9% | 53.0% | 52.9% |
| Operating Margin | 7.8% | 7.8% | 8.7% | 12.0% | 10.9% | -16.8% | — | 16.0% | 25.8% | 11.8% | 14.3% |
| Net Profit Margin | 2.6% | 2.6% | 4.8% | 21.0% | 9.6% | 6.7% | -151.1% | 12.2% | 21.6% | 12.2% | 11.3% |
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 | 1.2% | 1.2% | 2.0% | 9.7% | 4.0% | 1.6% | -17.2% | 5.1% | 9.5% | 5.7% | 5.5% |
| ROA | 0.8% | 0.8% | 1.4% | 6.6% | 2.9% | 1.1% | -11.7% | 3.4% | 6.4% | 3.8% | 3.5% |
| ROIC | 2.0% | 2.0% | 2.2% | 3.3% | 2.7% | -2.4% | — | 4.7% | 7.5% | 3.4% | 4.2% |
| ROCE | 2.5% | 2.5% | 2.6% | 4.1% | 3.5% | -3.0% | — | 4.9% | 8.1% | 4.1% | 5.1% |
SHO Leverage & Debt
Solvency and debt-coverage ratios — lower is generally safer
Sunstone Hotel Investors, Inc. carries a Debt/EBITDA ratio of 4.4x, which is highly leveraged (44% below the sector average of 7.9x). Net debt stands at $816M ($925M total debt minus $109M cash). Interest coverage of just 1.6x 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 | 0.48 | 0.48 | 0.41 | 0.38 | 0.40 | 0.28 | 0.38 | 0.40 | 0.37 | 0.39 | 0.37 |
| Debt / EBITDA | 4.42 | 4.42 | 4.20 | 3.38 | 3.68 | 14.67 | — | 0.91 | 0.79 | 0.88 | 0.80 |
| Net Debt / Equity | — | 0.42 | 0.35 | 0.19 | 0.35 | 0.23 | 0.20 | 0.08 | 0.07 | 0.20 | 0.23 |
| Net Debt / EBITDA | 3.90 | 3.90 | 3.67 | 1.65 | 3.24 | 11.89 | — | 0.19 | 0.15 | 0.45 | 0.49 |
| Debt / FCF | — | 10.37 | 4.38 | 2.04 | 9.04 | — | — | 0.75 | 0.68 | 2.67 | 4.69 |
| Interest Coverage | 1.58 | 1.58 | 1.89 | 5.31 | 3.84 | 2.04 | -6.64 | 3.58 | 6.41 | 3.62 | 3.74 |
SHO Liquidity & Efficiency
Short-term solvency ratios and asset-utilisation metrics
Sunstone Hotel Investors, Inc.'s current ratio of 2.30x is well above the 1.0 safety threshold, indicating strong short-term liquidity with ample room to cover current liabilities. The current ratio has declined from 3.33x to 2.30x 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 | 2.30 | 2.30 | 2.49 | 3.33 | 0.65 | 1.60 | 4.79 | 2.81 | 3.90 | 3.00 | 1.39 |
| Quick Ratio | 2.19 | 2.19 | 2.38 | 3.33 | 0.63 | 1.60 | 4.79 | 2.81 | 3.90 | 3.00 | 1.39 |
| Cash Ratio | 1.04 | 1.04 | 1.13 | 2.57 | 0.31 | 0.69 | 4.06 | 2.51 | 3.48 | 2.01 | 0.90 |
| Asset Turnover | — | 0.32 | 0.29 | 0.31 | 0.30 | 0.17 | 0.09 | 0.28 | 0.29 | 0.31 | 0.32 |
| Inventory Turnover | 78.98 | 78.98 | 46.12 | — | 58.62 | — | — | — | 506.85 | 423.98 | 457.16 |
| Days Sales Outstanding | — | — | — | — | — | — | — | — | — | — | — |
SHO Shareholder Yields
Earnings, FCF, buyback, and dividend yields — total returns to shareholders
Sunstone Hotel Investors, Inc. returns 7.1% to shareholders annually — split between a 1.6% dividend yield and 5.6% buyback yield. The earnings yield of 0.4% (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 | 1.6% | 1.8% | 2.5% | 2.7% | 1.2% | 0.5% | 6.4% | 5.4% | 6.0% | 4.4% | 6.9% |
| Payout Ratio | — | — | 138.3% | 28.9% | 28.4% | 39.9% | — | 125.4% | 70.9% | 112.1% | 169.5% |
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 | 0.4% | 0.5% | 1.2% | 8.7% | 3.5% | 1.4% | — | 3.9% | 8.5% | 3.6% | 3.6% |
| FCF Yield | 4.1% | 4.5% | 7.1% | 9.0% | 3.9% | — | — | 9.3% | 9.8% | 5.3% | 3.8% |
| Buyback Yield | 5.6% | 6.2% | 1.3% | 2.7% | 5.4% | 0.2% | 4.4% | 1.7% | 0.1% | 0.1% | 0.1% |
| Total Shareholder Yield | 7.1% | 8.0% | 3.8% | 5.4% | 6.7% | 0.7% | 10.8% | 7.2% | 6.2% | 4.5% | 7.0% |
| Shares Outstanding | — | $194M | $203M | $206M | $213M | $216M | $216M | $226M | $226M | $222M | $215M |
Peer Comparison
Compare SHO 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 |
|---|---|---|---|---|---|---|---|---|---|
 SHOYou | $2B | 242.3 | 13.2 | 24.7 | 4.7% | 7.8% | 1.2% | 2.0% | 4.4 |
 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 |
 HST | $15B | 21.9 | 12.2 | 15.7 | 53.4% | 15.4% | 10.2% | 5.9% | 3.4 |
 DRH | $2B | 24.3 | 12.0 | 13.4 | 55.2% | 14.4% | 6.6% | 4.6% | 4.3 |
 XHR | $2B | 26.2 | 11.9 | 17.2 | 1.5% | 9.9% | 5.1% | 3.2% | 6.0 |
 PEB | $2B | -16.2 | 13.0 | 10.9 | -6.7% | 5.1% | -2.5% | 1.1% | 8.1 |
 SVC | $266M | -1.3 | — | 2.3 | — | — | -27.0% | — | — |
 APLE | $3B | 18.9 | 11.4 | 11.7 | 6.4% | 17.7% | 5.5% | 3.9% | 4.0 |
 CLDT | $416M | 63.2 | 8.6 | 10.5 | 3.5% | 9.0% | 1.9% | 1.7% | 4.2 |
 INN | $582M | -24.3 | 9.3 | 7.9 | -7.7% | 8.4% | -0.6% | 1.7% | 6.7 |
| Real Estate Median | — | 24.5 | 16.7 | 15.6 | 52.1% | 26.0% | 3.5% | 3.0% | 7.9 |
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Includes 30+ ratios · 25 years · Updated daily
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Start ComparisonSHO — Frequently Asked Questions
Quick answers to the most common questions about buying SHO stock.
What is Sunstone Hotel Investors, Inc.'s P/E ratio?
Sunstone Hotel Investors, Inc.'s current P/E ratio is 242.3x. The historical average is 36.7x. This places it at the 100th percentile of its historical range.
What is Sunstone Hotel Investors, Inc.'s EV/EBITDA?
Sunstone Hotel Investors, Inc.'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 16.2x.
What is Sunstone Hotel Investors, Inc.'s ROE?
Sunstone Hotel Investors, Inc.'s return on equity (ROE) is 1.2%. The historical average is 1.5%.
Is SHO stock overvalued?
Based on historical data, Sunstone Hotel Investors, Inc. is trading at a P/E of 242.3x. This is at the 100th percentile of its historical P/E range. Compare with industry peers and growth rates for a complete picture.
What is Sunstone Hotel Investors, Inc.'s dividend yield?
Sunstone Hotel Investors, Inc.'s current dividend yield is 1.57%.
What are Sunstone Hotel Investors, Inc.'s profit margins?
Sunstone Hotel Investors, Inc. has 4.7% gross margin and 7.8% operating margin.
How much debt does Sunstone Hotel Investors, Inc. have?
Sunstone Hotel Investors, Inc.'s Debt/EBITDA ratio is 4.4x, indicating high leverage. A ratio above 4x may signal elevated financial risk.