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* The 5-Year EBITDA Growth Rate is the 5-year average EBITDA per share growth rate. While the denominator is a percentage, we use the whole number as opposed to the decimal form for the calculation. For example, 5% would be shown as 5 as opposed to 0.05. If it's smaller than or equal to 0, then the PEG Ratio is not calculated.
The historical rank and industry rank for Choice Hotels International's PEG Ratio or its related term are showing as below:
FRA:CZH'
s PEG Ratio Range Over the Past 10 Years
Min: 0.47 Med: 1.88 Max: 52.88
Current: 0.57
During the past 13 years, Choice Hotels International's highest PEG Ratio was 52.88. The lowest was 0.47. And the median was 1.88.
FRA:CZH's PEG Ratio is ranked better than 57.14% of 210
companies
in the Travel & Leisure industry
Industry Median: 0.685
vs FRA:CZH: 0.57
Peter Lynch thinks a company with a P/E ratio equal to its growth rate is fairly valued.
Choice Hotels International (FRA:CZH) PEG Ratio Explanation
To compare stocks with different growth rates, Peter Lynch invented a ratio called PEG Ratio. PEG Ratio is defined as the P/E ratio divided by the growth ratio. He thinks a company with a P/E ratio equal to its growth rate is fairly valued. Still he said he would rather buy a company growing 20% a year with a P/E of 20, instead of a company growing 10% a year with a P/E of 10.
Choice Hotels International PEG Ratio Related Terms
Choice Hotels International PEG 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.
For the Lodging subindustry, Choice Hotels International's PEG Ratio, along with its competitors' market caps and PEG 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 PEG Ratio vs Travel & Leisure Industry
For the Travel & Leisure industry and Consumer Cyclical sector, Choice Hotels International's PEG Ratio distribution charts can be found below:
* The bar in red indicates where Choice Hotels International's PEG Ratio 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.
* Note: The 5-Year EBITDA Growth Rate is the 5-year average EBITDA per share growth rate. While the denominator is a percentage, we use the whole number as opposed to the decimal form for the calculation. For example, 5% would be shown as 5 as opposed to 0.05. If it's smaller than or equal to 0, then the PEG Ratio is not calculated.
Choice Hotels International (FRA:CZH) has a PEG Ratio of 0.56 as of Jul. 25, 2026. Price-earnings to growth ratio is the ratio of price-earnings to a company's earnings growth rate. View historical data on Choice Hotels International and its competitors. This is 70% below median its historical median of 1.88. Over the past decade, Choice Hotels International's PEG Ratio has ranged from 0.47 to 52.88. According to the industry distribution chart, Choice Hotels International ranks #90 out of 210 companies in the Travel & Leisure industry, placing it in the top 42.9%.
Is Choice Hotels International's PEG Ratio too high?
Choice Hotels International's current PEG Ratio of 0.56 is 70% below median its 10-year median of 1.88. Over the past 10 years, this metric has ranged from a low of 0.47 to a high of 52.88. The Travel & Leisure industry median PEG Ratio is 0.69. Choice Hotels International's value of 0.56 is 18.2% below this industry median. Based on the distribution chart, Choice Hotels International ranks #90 out of 210 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 PEG Ratio compare to WH and CVEO?
According to the Travel & Leisure industry distribution chart, Choice Hotels International ranks #90 out of 210 companies for PEG Ratio. This puts Choice Hotels International in the upper half of its industry. The industry median PEG Ratio is 0.69. Choice Hotels International's value of 0.56 is 18.2% below this benchmark. Historically, Choice Hotels International's own PEG Ratio has ranged from 0.47 to 52.88 over the past decade. While the company's 10-year median is 1.88 vs. the industry median of 0.69, 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 PEG Ratio for a Travel & Leisure company?
The median PEG Ratio among Travel & Leisure companies is 0.69, based on 210 companies in the industry. Companies in the top quartile (top 25%) have a PEG Ratio significantly above this median, while those in the bottom quartile fall well below. However, PEG Ratio should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Choice Hotels International's current PEG Ratio of 0.56 is 18.2% 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 PEG Ratio mean?
A high PEG Ratio can signal that a stock is expensive relative to its fundamentals. Price-earnings to growth ratio is the ratio of price-earnings to a company's earnings growth rate. View historical data on Choice Hotels International and its competitors. For the Travel & Leisure industry, the median PEG Ratio is 0.69 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Choice Hotels International's current PEG Ratio is 0.56, which is 70% below median its own 10-year median of 1.88. 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 PEG Ratio of 0.56. 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 PEG Ratio is 0.56, which is 70% below median its 10-year median of 1.88 and 18.2% below the Travel & Leisure industry median of 0.69. 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 PEG Ratio calculated?
PEG Ratio is calculated from a company's financial statements. For Choice Hotels International (FRA:CZH), the current PEG Ratio is 0.56 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:
PEG Ratio: 0.56 (70% below median its 10-year median of 1.88)
GF Value™: €113.84 vs. price of €92.50 (18.7% below fair value)
Industry Position: 18.2% below the Travel & Leisure median (#90 of 210)
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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