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FCF Yield % is calculated as Free Cash Flow divided by Market Capitalization. It is a financial solvency ratio that compares the free cash flow a company is expected to earn against its market value.
Choice Hotels International FCF Yield % Explanation
Similar to Earnings Yield %, FCF Yield % is financial solvency ratio. A lower ratio suggests a less attractive investment, indicating that investors might not receive substantial returns in proportion to their investment. Conversely, a high free cash flow yield signals that a company generates sufficient cash to comfortably meet its debts, obligations, and dividend payments, making it a promising investment choice.
Choice Hotels International FCF Yield % Related Terms
Choice Hotels International FCF Yield % 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 FCF Yield %, along with its competitors' market caps and FCF Yield % 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 FCF Yield % vs Travel & Leisure Industry
For the Travel & Leisure industry and Consumer Cyclical sector, Choice Hotels International's FCF Yield % distribution charts can be found below:
* The bar in red indicates where Choice Hotels International's FCF Yield % falls into.
* 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 FCF Yield % of 1.99 as of Jul. 25, 2026. FCF Yield is calculated as Free Cash Flow divided by Market Capitalization. View historical data on Choice Hotels International and its competitors. This is 49% below median its historical median of 3.93. Over the past decade, Choice Hotels International's FCF Yield % has ranged from 0.97 to 6.73. According to the industry distribution chart, Choice Hotels International ranks #487 out of 853 companies in the Travel & Leisure industry, placing it in the top 57.1%.
Is Choice Hotels International's FCF Yield % too high?
Choice Hotels International's current FCF Yield % of 1.99 is 49% below median its 10-year median of 3.93. Over the past 10 years, this metric has ranged from a low of 0.97 to a high of 6.73. The Travel & Leisure industry median FCF Yield % is 3.49. Choice Hotels International's value of 1.99 is 43% below this industry median. Based on the distribution chart, Choice Hotels International ranks #487 out of 853 companies in the Travel & Leisure industry, which is below 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 FCF Yield % compare to WH and CVEO?
According to the Travel & Leisure industry distribution chart, Choice Hotels International ranks #487 out of 853 companies for FCF Yield %. This places Choice Hotels International in the lower half of its industry. The industry median FCF Yield % is 3.49. Choice Hotels International's value of 1.99 is 43% below this benchmark. Historically, Choice Hotels International's own FCF Yield % has ranged from 0.97 to 6.73 over the past decade. While the company's 10-year median is 3.93 vs. the industry median of 3.49, 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 FCF Yield % for a Travel & Leisure company?
The median FCF Yield % among Travel & Leisure companies is 3.49, based on 853 companies in the industry. Companies in the top quartile (top 25%) have a FCF Yield % significantly above this median, while those in the bottom quartile fall well below. However, FCF Yield % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Choice Hotels International's current FCF Yield % of 1.99 is 43% 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 FCF Yield % mean?
A high FCF Yield % can signal that a stock is expensive relative to its fundamentals. FCF Yield is calculated as Free Cash Flow divided by Market Capitalization. View historical data on Choice Hotels International and its competitors. For the Travel & Leisure industry, the median FCF Yield % is 3.49 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Choice Hotels International's current FCF Yield % is 1.99, which is 49% below median its own 10-year median of 3.93. 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 FCF Yield % of 1.99. The stock's GF Value™ is €113.84, compared to a current price of €92.50 — trading 18.7% below its estimated fair value. The current FCF Yield % is 1.99, which is 49% below median its 10-year median of 3.93 and 43% below the Travel & Leisure industry median of 3.49. Choice Hotels International's overall GF Score™ is 85/100 with 4 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is FCF Yield % calculated?
FCF Yield % is calculated from a company's financial statements. For Choice Hotels International (FRA:CZH), the current FCF Yield % is 1.99 as of Jul. 25, 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 18.7% below its estimated GF Value™ of €113.84.
Key valuation signals for FRA:CZH:
FCF Yield %: 1.99 (49% below median its 10-year median of 3.93)
GF Value™: €113.84 vs. price of €92.50 (18.7% below fair value)
Industry Position: 43% below the Travel & Leisure median (#487 of 853)
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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FCF Yield % is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.
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