PEG Ratio is defined as the PE Ratio without NRI divided by the growth ratio. The growth rate we use is the 5-Year EBITDA growth rate. As of today, Choice Hotels International's PE Ratio without NRI is 19.74. Choice Hotels International's 5-Year EBITDA growth rate is 13.80%. Therefore, Choice Hotels International's PEG Ratio for today is 1.43.
* The 5-Year EBITDA Growth Rate is the 5-year average EBITDA per share growth rate. While the denominator is a percentage, we use the whole number as opposed to the decimal form for the calculation. For example, 5% would be shown as 5 as opposed to 0.05. If it's smaller than or equal to 0, then the PEG Ratio is not calculated.
The historical rank and industry rank for Choice Hotels International's PEG Ratio or its related term are showing as below:
CHH'
s PEG Ratio Range Over the Past 10 Years
Min: 0.9 Med: 3.28 Max: 52.88
Current: 1.43
During the past 13 years, Choice Hotels International's highest PEG Ratio was 52.88. The lowest was 0.90. And the median was 3.28.
CHH's PEG Ratio is ranked better than 55.62% of 178
companies
in the Travel & Leisure industry
Industry Median: 1.72
vs CHH: 1.43
Peter Lynch thinks a company with a P/E ratio equal to its growth rate is fairly valued.
Choice Hotels International PEG Ratio Historical Data
The historical data trend for Choice Hotels International's PEG Ratio can be seen below:
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
Competitive Comparison of Choice Hotels International's PEG Ratio
For the Lodging subindustry, Choice Hotels International's PEG Ratio, along with its competitors' market caps and PEG Ratio data, can be viewed below:
* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.
Choice Hotels International's PEG Ratio Distribution in the Travel & Leisure Industry
For the Travel & Leisure industry and Consumer Cyclical sector, Choice Hotels International's PEG Ratio distribution charts can be found below:
* The bar in red indicates where Choice Hotels International's PEG Ratio falls into.
Choice Hotels International PEG Ratio Calculation
PEG Ratio is defined as the PE Ratio without NRI divided by the growth ratio.
The ratio we use is the 5-Year EBITDA growth rate.
Choice Hotels International's PEG Ratio for today is calculated as
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
* Note: The 5-Year EBITDA Growth Rate is the 5-year average EBITDA per share growth rate. While the denominator is a percentage, we use the whole number as opposed to the decimal form for the calculation. For example, 5% would be shown as 5 as opposed to 0.05. If it's smaller than or equal to 0, then the PEG Ratio is not calculated.
Choice Hotels International (NYSE:CHH) PEG Ratio Explanation
To compare stocks with different growth rates, Peter Lynch invented a ratio called PEG Ratio. PEG Ratio is defined as the P/E ratio divided by the growth ratio. He thinks a company with a P/E ratio equal to its growth rate is fairly valued. Still he said he would rather buy a company growing 20% a year with a P/E of 20, instead of a company growing 10% a year with a P/E of 10.
Choice Hotels International PEG Ratio Related Terms
Thank you for viewing the detailed overview of Choice Hotels International's PEG Ratio provided by GuruFocus.com. Please click on the following links to see related term pages.
Choice Hotels International (Choice Hotels International) Business Description
As of Dec. 31, 2022, Choice Hotels operated 628,000 rooms across 13 brands addressing the economy and midscale segments. Comfort Inn and Comfort Suites are the largest brands (27% of the company's total domestic rooms), while Ascend and Cambria (7% of total domestic rooms) are newer lifestyle and select-service brands. Choice added its 13th brand with the launch of extended-stay brand Everhome in January 2020. Choice closed on its Radisson acquisition in August 2022, which will add around 70,000 rooms. Franchises are 99% of total revenue, and the United States represents 79% of total rooms in 2022.
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