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Choice Hotels International (FRA:CZH) EV-to-EBIT Explanation
This is a more accurate valuation of companies' operation because it considers the debt and cash on its balance sheet, and non-operating items such as interest payment, tax, and one-time items are not included in the Operating Income.
Choice Hotels International's Enterprise Value for the quarter that ended in Jun. 2026 was €6,129 Mil.
Choice Hotels International'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 €429 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.
Choice Hotels International EV-to-EBIT Related Terms
Choice Hotels International EV-to-EBIT 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.
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.
Choice Hotels International's current Enterprise Value is €6,022 Mil.
Choice Hotels International'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 €429 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.
Choice Hotels International (FRA:CZH) has a EV-to-EBIT of 14.04 as of Aug. 26, 2026. EV to EBIT ratio is the inverse of Joel Greenblatt's earnings yield definition. View historical data on Choice Hotels International and its competitors. This is 21% below median its historical median of 17.73. Over the past decade, Choice Hotels International's EV-to-EBIT has ranged from 10.47 to 76.39. According to the industry distribution chart, Choice Hotels International ranks #316 out of 641 companies in the Travel & Leisure industry, placing it in the top 49.3%.
Is Choice Hotels International's EV-to-EBIT too high?
Choice Hotels International's current EV-to-EBIT of 14.04 is 21% below median its 10-year median of 17.73. Over the past 10 years, this metric has ranged from a low of 10.47 to a high of 76.39. The Travel & Leisure industry median EV-to-EBIT is 14.26. Choice Hotels International's value of 14.04 is 1.5% below this industry median. Based on the distribution chart, Choice Hotels International ranks #316 out of 641 companies in the Travel & Leisure industry, which is above the industry midpoint. Overall, Choice Hotels International has a GF Score™ of 85/100, reflecting its overall financial health beyond just this single metric.
How does Choice Hotels International's EV-to-EBIT compare to WH and CVEO?
According to the Travel & Leisure industry distribution chart, Choice Hotels International ranks #316 out of 641 companies for EV-to-EBIT. This puts Choice Hotels International in the upper half of its industry. The industry median EV-to-EBIT is 14.26. Choice Hotels International's value of 14.04 is 1.5% below this benchmark. Historically, Choice Hotels International's own EV-to-EBIT has ranged from 10.47 to 76.39 over the past decade. While the company's 10-year median is 17.73 vs. the industry median of 14.26, Choice Hotels International 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 EV-to-EBIT for a Travel & Leisure company?
The median EV-to-EBIT among Travel & Leisure companies is 14.26, based on 641 companies in the industry. Companies in the top quartile (top 25%) have a EV-to-EBIT significantly above this median, while those in the bottom quartile fall well below. However, EV-to-EBIT should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Choice Hotels International's current EV-to-EBIT of 14.04 is 1.5% 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 EV-to-EBIT mean?
A high EV-to-EBIT can signal that a stock is expensive relative to its fundamentals. EV to EBIT ratio is the inverse of Joel Greenblatt's earnings yield definition. View historical data on Choice Hotels International and its competitors. For the Travel & Leisure industry, the median EV-to-EBIT is 14.26 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Choice Hotels International's current EV-to-EBIT is 14.04, which is 21% below median its own 10-year median of 17.73. 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 EV-to-EBIT of 14.04. The stock's GF Value™ is €114.15, compared to a current price of €92.50 — trading 19% below its estimated fair value. The current EV-to-EBIT is 14.04, which is 21% below median its 10-year median of 17.73 and 1.5% below the Travel & Leisure industry median of 14.26. Choice Hotels International's overall GF Score™ is 85/100 with 5 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is EV-to-EBIT calculated?
EV-to-EBIT is calculated from a company's financial statements. For Choice Hotels International (FRA:CZH), the current EV-to-EBIT is 14.04 as of Aug. 26, 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 €92.50 is trading 19% below its estimated GF Value™ of €114.15.
Key valuation signals for FRA:CZH:
EV-to-EBIT: 14.04 (21% below median its 10-year median of 17.73)
GF Value™: €114.15 vs. price of €92.50 (19% below fair value)
Industry Position: 1.5% below the Travel & Leisure median (#316 of 641)
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.
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.
85GF Score
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