The PS Ratio, or Price-to-Sales ratio, or Price/Sales, is a financial ratio used to compare a company's market price to its Revenue per Share. As of today, Choice Hotels International's share price is $118.95.
Choice Hotels International's Revenue per Share for the trailing twelve months (TTM) ended in Dec. 2023 was $30.47. Hence, Choice Hotels International's PS Ratio for today is 3.90.
Good Sign:
Choice Hotels International Inc stock PS Ratio (=3.91) is close to 3-year low of 3.6
The historical rank and industry rank for Choice Hotels International's PS Ratio or its related term are showing as below:
CHH'
s PS Ratio Range Over the Past 10 Years
Min: 2.69 Med: 4.4 Max: 9.24
Current: 3.9
During the past 13 years, Choice Hotels International's highest PS Ratio was 9.24. The lowest was 2.69. And the median was 4.40.
CHH's PS Ratio is ranked worse than 78.01% of 823
companies
in the Travel & Leisure industry
Industry Median: 1.61
vs CHH: 3.90
Choice Hotels International Inc has shown predictable revenue and earnings growth.
During the past 12 months, the average Revenue per Share Growth Rate of Choice Hotels International was 19.70% per year.
During the past 3 years, the average Revenue per Share Growth Rate was 29.80% per year.
During the past 5 years, the average Revenue per Share Growth Rate was 10.70% per year.
During the past 10 years, the average Revenue per Share Growth Rate was 7.60% per year.
During the past 13 years, Choice Hotels International's highest 3-Year average Revenue per Share Growth Rate was 49.60% per year. The lowest was -5.80% per year. And the median was 8.30% per year.
Back to Basics: PS Ratio
Choice Hotels International PS Ratio Historical Data
* 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 PS Ratio
For the Lodging subindustry, Choice Hotels International's PS Ratio, along with its competitors' market caps and PS 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 PS Ratio Distribution in the Travel & Leisure Industry
For the Travel & Leisure industry and Consumer Cyclical sector, Choice Hotels International's PS Ratio distribution charts can be found below:
* The bar in red indicates where Choice Hotels International's PS Ratio falls into.
Choice Hotels International PS Ratio Calculation
The PS Ratio, or Price-to-Sales ratio, or Price/Sales, is a financial ratio used to compare a company's market price to its Revenue per Share. It is a ratio widely used to value stocks and it was first used by Ken Fisher.
Choice Hotels International's Share Price of today is $118.95. Choice Hotels International's Revenue per Share for the trailing twelve months (TTM) ended in Dec. 2023 adds up the quarterly data reported by the company within the most recent 12 months, which was $30.47.
* 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.
It can also be calculated from the numbers for the whole company:
Choice Hotels International (NYSE:CHH) PS Ratio Explanation
The PS Ratio is an excellent valuation indicator if you want to compare a stock with its historical valuation or with the stocks in the same industry. The PS Ratio works especially well when you want to compare the stock's current valuation with its historical valuation. The PS Ratio is a great valuation tool for evaluating cyclical businesses where the PE Ratio works poorly. It works the best when comparing the current valuation with the historical valuation because over time, a company's profit margin tends to revert to the mean.
When the PS Ratio is applied to the whole stock market, it can be used to evaluate the current market valuation and projected returns. In this case, the price is the total market cap of all stocks that are traded, and sales are the GDP of the country. This is how Warren Buffett estimates the broad market valuation and project future returns.
The PS Ratio does not tell you how cheap or expensive the stock is. It cannot be used to compare companies in different industries. It works better for companies within the same industry because these companies tend to have similar capital structures and profit margins. It works the best when comparing a company with itself in the past.
Choice Hotels International PS Ratio Related Terms
Thank you for viewing the detailed overview of Choice Hotels International's PS 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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