SHO (Sunstone Hotel Investors) Earnings Yield (Joel Greenblatt) %: 3.12% (As of Jun. 2026) — 27% Below Median

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SHO Sunstone Hotel Investors Inc SHO
77 GF Score
Price $10.93
GF Value $11.15
Valuation Fairly Valued
! 9 Warning Signs
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What is Sunstone Hotel Investors Earnings Yield (Joel Greenblatt) %?

Sunstone Hotel Investors SHO +0.60% 77 Earnings Yield (Joel Greenblatt) % is 3.12% as of Jun. 2026, which is 27% below its 10-year median of 4.30. GuruFocus rates SHO with a GF Score™ of 77/100 and a GF Value™ of $11.15 (Fairly Valued). The stock has 9 warning signs investors should review. Among 957 REITs companies, Sunstone Hotel Investors ranks worse than 53.5% on this metric.

Sunstone Hotel Investors's Enterprise Value for the quarter that ended in Jun. 2026 was $3,280 Mil. Sunstone Hotel Investors's EBIT for the trailing twelve months (TTM) ended in Jun. 2026 was $102 Mil. Sunstone Hotel Investors's Earnings Yield (Joel Greenblatt) for the quarter that ended in Jun. 2026 was 3.12%.

The historical rank and industry rank for Sunstone Hotel Investors's Earnings Yield (Joel Greenblatt) % or its related term are showing as below:

SHO' s Earnings Yield (Joel Greenblatt) % Range Over the Past 10 Years
Min: -11.99   Med: 4.3   Max: 11.45
Current: 3.24

During the past 13 years, the highest Earnings Yield (Joel Greenblatt) of Sunstone Hotel Investors was 11.45%. The lowest was -11.99%. And the median was 4.30%.

SHO's Earnings Yield (Joel Greenblatt) % is ranked worse than
53.5% of 957 companies
in the REITs industry
Industry Median: 3.51 vs SHO: 3.24

Joel Greenblatt's definition of earnings yield has the same problems the regular earnings yield does. It does not consider the growth of the company. It only looks at one-year's business operation. For cyclical companies, the earnings yield is usually highest at the peak of the business cycle. But these earnings are rarely sustainable.

A better indicator of the attractiveness of an investment which takes growth into account is the Forward Rate of Return (Yacktman) %. Sunstone Hotel Investors's Forward Rate of Return (Yacktman) % for the quarter that ended in Jun. 2026 was 0.00%. The Forward Rate of Return uses the normalized Free Cash Flow of the past five years, and considers growth. The forward rate of return can be thought of as the return that investors buying the stock today can expect from it in the future.


Sunstone Hotel Investors  (NYSE:SHO) Earnings Yield (Joel Greenblatt) % Explanation

Joel Greenblatt defines the earnings yield using the above equation because it more accurately reflects the company's profitability relative to its stock price. Items like interest payment and tax etc. are not directly related to the company's operational profitability.

Enterprise Value instead of market cap (share price) is used in the calculation because it is the real price stock and bond investors together pay for the company.


Be Aware

Joel Greenblatt's definition of earnings yield has the same problems the regular earnings yield does. It does not consider the growth of the company. It only looks at one-year's business operation. For cyclical companies, the earnings yield is usually highest at the peak of the business cycle. But these earnings are rarely sustainable.

Forward Rate of Return (Yacktman) % based on Don Yacktman's definition is a better measure of the expected rate of return for a stock.


Sunstone Hotel Investors Earnings Yield (Joel Greenblatt) % Related Terms


Sunstone Hotel Investors Earnings Yield (Joel Greenblatt) % Historical Data

* Premium members only.

The historical data trend for Sunstone Hotel Investors's Earnings Yield (Joel Greenblatt) % 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.

Sunstone Hotel Investors Earnings Yield (Joel Greenblatt) % Chart

Sunstone Hotel Investors Annual Data
Trend Dec16 Dec17 Dec18 Dec19 Dec20 Dec21 Dec22 Dec23 Dec24 Dec25
Earnings Yield (Joel Greenblatt) %
Get a 7-Day Free Trial Premium Member Only Premium Member Only 1.90 4.05 9.07 2.64 2.65

Sunstone Hotel Investors Quarterly Data
Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23 Sep23 Dec23 Mar24 Jun24 Sep24 Dec24 Mar25 Jun25 Sep25 Dec25 Mar26 Jun26
Earnings Yield (Joel Greenblatt) % Get a 7-Day Free Trial Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 2.53 2.29 2.65 3.10 3.12

SHO vs PEB, XHR, RLJ: Earnings Yield (Joel Greenblatt) % Comparison

For the REIT - Hotel & Motel subindustry, Sunstone Hotel Investors's Earnings Yield (Joel Greenblatt) %, along with its competitors' market caps and Earnings Yield (Joel Greenblatt) % 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.


Sunstone Hotel Investors Earnings Yield (Joel Greenblatt) % vs REITs Industry

For the REITs industry and Real Estate sector, Sunstone Hotel Investors's Earnings Yield (Joel Greenblatt) % distribution charts can be found below:

* The bar in red indicates where Sunstone Hotel Investors's Earnings Yield (Joel Greenblatt) % falls into.


SHO
77GF Score
Sunstone Hotel Investors Inc SHO
Earnings Yield (Joel Greenblatt) % is just one metric. See GF Score™, valuation, warning signs, and more.
View Full Analysis

Sunstone Hotel Investors Earnings Yield (Joel Greenblatt) % Calculation

In his book, The Little That Beat the Market, hedge fund manager Joel Greenblatt defines Earnings Yield as operating income divided by enterprise value.

Sunstone Hotel Investorss Earnings Yield (Joel Greenblatt) for the fiscal year that ended in Dec. 2025 is calculated as

Earnings Yield (Joel Greenblatt)=EBIT/Enterprise Value
=73.952/2791.9244
=2.65 %

Sunstone Hotel Investors's EBIT for the trailing twelve months (TTM) ended in Jun. 2026 adds up the quarterly data reported by the company within the most recent 12 months, which was $102 Mil.


What does a Earnings Yield (Joel Greenblatt) % of 3.12% mean?
Sunstone Hotel Investors (SHO) has a Earnings Yield (Joel Greenblatt) % of 3.12% as of Jun. 2026. Joel Greenblatt's earnings yield equals the ratio of earnings before interest and taxes to enterprise value. View historical data on Sunstone Hotel Investors and its competitors. This is 27% below median its historical median of 4.30. According to the industry distribution chart, Sunstone Hotel Investors ranks #512 out of 957 companies in the REITs industry, placing it in the top 53.5%.
Is Sunstone Hotel Investors' Earnings Yield (Joel Greenblatt) % too high?
Sunstone Hotel Investors' current Earnings Yield (Joel Greenblatt) % of 3.12% is 27% below median its 10-year median of 4.30. The REITs industry median Earnings Yield (Joel Greenblatt) % is 3.51. Sunstone Hotel Investors' value of 3.12% is 11.1% below this industry median. Based on the distribution chart, Sunstone Hotel Investors ranks #512 out of 957 companies in the REITs industry, which is below the industry midpoint. Overall, Sunstone Hotel Investors has a GF Score™ of 77/100 and is considered Fairly Valued, reflecting its overall financial health beyond just this single metric.
How does Sunstone Hotel Investors' Earnings Yield (Joel Greenblatt) % compare to PEB and XHR?
According to the REITs industry distribution chart, Sunstone Hotel Investors ranks #512 out of 957 companies for Earnings Yield (Joel Greenblatt) %. This places Sunstone Hotel Investors in the lower half of its industry. The industry median Earnings Yield (Joel Greenblatt) % is 3.51. Sunstone Hotel Investors' value of 3.12% is 11.1% below this benchmark. While the company's 10-year median is 4.30 vs. the industry median of 3.51, Sunstone Hotel Investors has consistently been below the industry average. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Earnings Yield (Joel Greenblatt) % for a REITs company?
The median Earnings Yield (Joel Greenblatt) % among REITs companies is 3.51, based on 957 companies in the industry. Companies in the top quartile (top 25%) have a Earnings Yield (Joel Greenblatt) % significantly above this median, while those in the bottom quartile fall well below. However, Earnings Yield (Joel Greenblatt) % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Sunstone Hotel Investors's current Earnings Yield (Joel Greenblatt) % of 3.12% is 11.1% below the industry median. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high Earnings Yield (Joel Greenblatt) % mean?
A high Earnings Yield (Joel Greenblatt) % can signal that a stock is expensive relative to its fundamentals. Joel Greenblatt's earnings yield equals the ratio of earnings before interest and taxes to enterprise value. View historical data on Sunstone Hotel Investors and its competitors. For the REITs industry, the median Earnings Yield (Joel Greenblatt) % is 3.51 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Sunstone Hotel Investors's current Earnings Yield (Joel Greenblatt) % is 3.12%, which is 27% below median its own 10-year median of 4.30. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Sunstone Hotel Investors stock overvalued right now?
Based on GuruFocus' analysis, Sunstone Hotel Investors (SHO) is currently considered Fairly Valued. The stock's GF Value™ is $11.15, compared to a current price of $10.93 — trading 2% below its estimated fair value. The current Earnings Yield (Joel Greenblatt) % is 3.12%, which is 27% below median its 10-year median of 4.30 and 11.1% below the REITs industry median of 3.51. Sunstone Hotel Investors' overall GF Score™ is 77/100 with 9 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Earnings Yield (Joel Greenblatt) % calculated?
Earnings Yield (Joel Greenblatt) % is calculated from a company's financial statements. For Sunstone Hotel Investors (SHO), the current Earnings Yield (Joel Greenblatt) % is 3.12% as of Jun. 2026. GuruFocus calculates this using data sourced from SEC filings and annual reports. See the calculation section and 30-year financial data on this page for the full breakdown.

Is Sunstone Hotel Investors (SHO) Overvalued in 2026?

Based on GuruFocus' analysis, Sunstone Hotel Investors stock appears to be undervalued. The current stock price of $10.93 is trading 2% below its estimated GF Value™ of $11.15. GuruFocus considers Sunstone Hotel Investors to be Fairly Valued.

Key valuation signals for SHO:

  • Earnings Yield (Joel Greenblatt) %: 3.12% (27% below median its 10-year median of 4.30)
  • GF Value™: $11.15 vs. price of $10.93 (2% below fair value)
  • GF Score™: 77/100 with 9 warning signs
  • Industry Position: 11.1% below the REITs median (#512 of 957)

No single metric tells the full story. See the SHO stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.


Sunstone Hotel Investors Business Description

Industry Real EstateREITs
Address 15 Enterprise, Suite 200, Aliso Viejo, CA, USA, 92656
Sunstone Hotel Investors Inc is a real estate investment trust that acquires, owns, manages, and renovates the full-service hotel and select-service hotel properties across various states in the United States. Its firm's portfolio consists upper upscale and luxury hotels located in convention, resort destination and urban markets. Its majority of the hotels operate under a brand owned by Marriott, Hilton, Hyatt, Four Seasons or Montage. It operates geographically in California which generates the majority of its revenue; Florida; and Hawaii. The company's sole source of income is hotel revenue from its Hotel Ownership Segment.
77GF Score

Get the complete analysis for SHO

Earnings Yield (Joel Greenblatt) % is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.

$10.93
Price
$11.15
GF Value