Choice Hotels International (FRA:CZH) EBIT: €447 Mil (TTM As of Mar. 2026)


FRA:CZH Choice Hotels International Inc FRA:CZH
88 GF Score
Price €93.50
GF Value €113.44
! 4 Warning Signs
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What is Choice Hotels International EBIT?

Choice Hotels International FRA:CZH -5.08% 88 EBIT is €447 Mil as of Mar. 2026. GuruFocus rates FRA:CZH with a GF Score™ of 88/100 and a GF Value™ of €113.44. The stock has 4 warning signs investors should review.

Choice Hotels International's earnings before interest and taxes (EBIT) for the three months ended in Mar. 2026 was €47 Mil. Its earnings before interest and taxes (EBIT) for the trailing twelve months (TTM) ended in Mar. 2026 was €447 Mil.

EBIT or Operating Income is linked to Return on Capital for both regular definition and Joel Greenblatt's definition. Choice Hotels International's annualized ROC % for the quarter that ended in Mar. 2026 was 5.89%. Choice Hotels International's annualized ROC (Joel Greenblatt) % for the quarter that ended in Mar. 2026 was 30.06%.

EBIT is also linked to Joel Greenblatt's definition of earnings yield. Choice Hotels International's Earnings Yield (Joel Greenblatt) % for the quarter that ended in Mar. 2026 was 7.15%.


Choice Hotels International  (FRA:CZH) EBIT Explanation

1. EBIT or Operating Income is linked to Return on Capital for both regular definition and Joel Greenblatt's definition.

Choice Hotels International's annualized ROC % for the quarter that ended in Mar. 2026 is calculated as:

ROC % (Q: Mar. 2026 )
=NOPAT/Average Invested Capital
=Operating Income * ( 1 - Tax Rate % )/( (Invested Capital (Q: Dec. 2025 ) + Invested Capital (Q: Mar. 2026 ))/ count )
=208.536 * ( 1 - 33.01% )/( (2377.583 + 2365.689)/ 2 )
=139.6982664/2371.636
=5.89 %

where

Invested Capital(Q: Dec. 2025 )
=Total Assets - Accounts Payable & Accrued Expense - Excess Cash
=Total Assets - Accounts Payable & Accrued Expense - ( Cash, Cash Equivalents, Marketable Securities - max(0, Total Current Liabilities - Total Current Assets+Cash, Cash Equivalents, Marketable Securities))
=2492.145 - 166.907 - ( 38.427 - max(0, 399.067 - 346.722+38.427))
=2377.583

Invested Capital(Q: Mar. 2026 )
=Total Assets - Accounts Payable & Accrued Expense - Excess Cash
=Total Assets - Accounts Payable & Accrued Expense - ( Cash, Cash Equivalents, Marketable Securities - max(0, Total Current Liabilities - Total Current Assets+Cash, Cash Equivalents, Marketable Securities))
=2547.067 - 201.458 - ( 37.949 - max(0, 375.4 - 355.32+37.949))
=2365.689

Note: The Operating Income data used here is four times the quarterly (Mar. 2026) data.

2. Joel Greenblatt's definition of Return on Capital:

Choice Hotels International's annualized ROC (Joel Greenblatt) % for the quarter that ended in Mar. 2026 is calculated as:

ROC (Joel Greenblatt) %(Q: Mar. 2026 )
=EBIT/Average of (Net fixed Assets + Net Working Capital)
=EBIT/Average of (Property, Plant and Equipment+Net Working Capital)
     Q: Dec. 2025  Q: Mar. 2026
=EBIT/( ( (Property, Plant and Equipment + Net Working Capital) + (Property, Plant and Equipment + Net Working Capital) )/ count )
=187.78/( ( (620.825 + max(-175.983, 0)) + (628.372 + max(-58.029, 0)) )/ 2 )
=187.78/( ( 620.825 + 628.372 )/ 2 )
=187.78/624.5985
=30.06 %

where Working Capital is:

Working Capital(Q: Dec. 2025 )
=(Accounts Receivable + Total Inventories + Other Current Assets) - (Accounts Payable & Accrued Expense + Defer. Rev. + Other Current Liabilities)
=(177.197 + 0 + 38.744) - (166.907 + 85.996 + 139.021)
=-175.983

Working Capital(Q: Mar. 2026 )
=(Accounts Receivable + Total Inventories + Other Current Assets) - (Accounts Payable & Accrued Expense + Defer. Rev. + Other Current Liabilities)
=(210.637 + 0 + 106.734) - (201.458 + 97.618 + 76.324)
=-58.029

When net working capital is negative, 0 is used.

Note: The EBIT data used here is four times the quarterly (Mar. 2026) EBIT data.

3. It is also linked to Joel Greenblatt's definition of Earnings Yield:

Choice Hotels International's Earnings Yield (Joel Greenblatt) % for today is calculated as:

Earnings Yield (Joel Greenblatt) %=EBIT (TTM)/Enterprise Value (Q: Mar. 2026 )
=447.032/6251.300
=7.15 %

* 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.


Choice Hotels International EBIT Related Terms


Choice Hotels International EBIT Historical Data

* Premium members only.

The historical data trend for Choice Hotels International's EBIT 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.

Choice Hotels International EBIT Chart

Choice Hotels International Annual Data
Trend Dec16 Dec17 Dec18 Dec19 Dec20 Dec21 Dec22 Dec23 Dec24 Dec25
EBIT
Get a 7-Day Free Trial Premium Member Only Premium Member Only 374.51 453.69 367.48 461.05 468.03

Choice Hotels International Quarterly Data
Jun21 Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23 Sep23 Dec23 Mar24 Jun24 Sep24 Dec24 Mar25 Jun25 Sep25 Dec25 Mar26
EBIT 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 74.93 113.88 199.71 86.50 46.95

FRA:CZH vs WH, CVEO, GHG: EBIT Comparison

For the Lodging subindustry, Choice Hotels International's EV-to-EBIT, along with its competitors' market caps and EV-to-EBIT 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 EV-to-EBIT vs Travel & Leisure Industry

For the Travel & Leisure industry and Consumer Cyclical sector, Choice Hotels International's EV-to-EBIT distribution charts can be found below:

* The bar in red indicates where Choice Hotels International's EV-to-EBIT falls into.


FRA:CZH
88GF Score
Choice Hotels International Inc FRA:CZH
EBIT is just one metric. See GF Score™, valuation, warning signs, and more.
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Choice Hotels International EBIT Calculation

EBIT, sometimes also called Earnings Before Interest and Taxes, is a measure of a firm's profit that includes all expenses except interest and income tax expenses. It is the difference between operating revenues and operating expenses. When a firm does not have non-operating income, then Operating Income is sometimes used as a synonym for EBIT and operating profit.

EBIT for the trailing twelve months (TTM) ended in Mar. 2026 adds up the quarterly data reported by the company within the most recent 12 months, which was €447 Mil.

* 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.

Frequently Asked Questions Learn more about EBIT →
What does a EBIT of €447 Mil mean?
Choice Hotels International (FRA:CZH) has a EBIT of €447 Mil as of Mar. 2026. Earnings before interest and taxes is the difference between operating revenue and operating expenses. View historical data on Choice Hotels International.
Is Choice Hotels International's EBIT too high?
Choice Hotels International's current EBIT is €447 Mil. Overall, Choice Hotels International has a GF Score™ of 88/100, reflecting its overall financial health beyond just this single metric.
How does Choice Hotels International's EBIT compare to WH and CVEO?
Choice Hotels International's EBIT of €447 Mil can be compared against companies in the Travel & Leisure industry. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good EBIT for a Travel & Leisure company?
A good EBIT depends on the Travel & Leisure industry context. However, EBIT should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high EBIT mean?
A high EBIT can signal that a stock is expensive relative to its fundamentals. Earnings before interest and taxes is the difference between operating revenue and operating expenses. View historical data on Choice Hotels International. Choice Hotels International's current EBIT is €447 Mil. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Choice Hotels International stock overvalued right now?
Choice Hotels International (FRA:CZH) has a current EBIT of €447 Mil. The stock's GF Value™ is €113.44, compared to a current price of €93.50 — trading 17.6% below its estimated fair value. The current EBIT is €447 Mil. Choice Hotels International's overall GF Score™ is 88/100 with 4 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is EBIT calculated?
EBIT is calculated from a company's financial statements. For Choice Hotels International (FRA:CZH), the current EBIT is €447 Mil as of Mar. 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 Choice Hotels International (FRA:CZH) Overvalued in 2026?

Based on GuruFocus' analysis, Choice Hotels International stock appears to be undervalued. The current stock price of €93.50 is trading 17.6% below its estimated GF Value™ of €113.44.

Key valuation signals for FRA:CZH:

  • EBIT: €447 Mil
  • GF Value™: €113.44 vs. price of €93.50 (17.6% below fair value)
  • GF Score™: 88/100 with 4 warning signs

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


Choice Hotels International Business Description

Other Exchanges CHH:USACZH:Germany
Address 915 Meeting Street, Suite 600, North Bethesda, MD, USA, 20852
At year-end 2025, Choice Hotels operated 657,000 rooms across the economy, midscale, upscale, and extended-stay segments. Comfort Inn and Comfort Suites are the largest brands (27% of the company's total rooms), while Ascend and Cambria (10%) are lifestyle and select-service brands, and WoodSpring (5%) is the company's largest extended-stay brand. Choice closed on its Radisson acquisition in August 2022, which added about 70,000 rooms. Franchises account for 100% of total revenue, and the United States represented 78% of total rooms in 2025.
88GF Score

Get the complete analysis for FRA:CZH

EBIT is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.

€93.50
Price
€113.44
GF Value