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The 1-Year Sharpe Ratio measures the additional return that an investor receives per unit of increase in risk over the past year. As of today (2026-08-31), Choice Hotels International's 1-Year Sharpe Ratio is -0.60.
Choice Hotels International (FRA:CZH) 1-Year Sharpe Ratio Explanation
The 1-Year Sharpe Ratio inidicates the risk-adjusted return of an investment over the past year. It is calculated as the annualized result of the average monthly excess return divided by its standard deviation over the past year. The monthly excess return is the monthly investment return minus the monthly risk-free rate (typically the 10-year Treasury Constant Maturity Rate). If the risk-free rate for a specific region is not available, U.S. data is used by default.
The greater a portfolio's Sharpe Ratio, the better its risk-adjusted performance. A negative Sharpe Ratio means the risk-free rate is greater than the portfolio’s historical or projected return, or else the portfolio's return is expected to be negative.
Choice Hotels International 1-Year Sharpe Ratio Related Terms
FRA:CZH vs WH, CVEO, GHG: 1-Year Sharpe Ratio Comparison
For the Lodging subindustry, Choice Hotels International's 1-Year Sharpe Ratio, along with its competitors' market caps and 1-Year Sharpe 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 1-Year Sharpe Ratio vs Travel & Leisure Industry
For the Travel & Leisure industry and Consumer Cyclical sector, Choice Hotels International's 1-Year Sharpe Ratio distribution charts can be found below:
* The bar in red indicates where Choice Hotels International's 1-Year Sharpe Ratio falls into.
Choice Hotels International 1-Year Sharpe Ratio Calculation
The 1-Year Sharpe Ratio measures the performance of an investment such as a stock or portfolio compared to a risk-free asset. A stock / portfolio's 1-Year Sharpe Ratio can be calculated by dividing the difference between the one-year returns of the investment and the risk-free rate, by the standard deviation of the investment returns over one year.
Choice Hotels International (FRA:CZH) has a 1-Year Sharpe Ratio of -0.60 as of Aug. 31, 2026. 1-Year Sharpe Ratio measures the additional return that an investor receives per unit of increase in risk. View historical data for Choice Hotels International and its competitors.
Is Choice Hotels International's 1-Year Sharpe Ratio too high?
Choice Hotels International's current 1-Year Sharpe Ratio is -0.60. Overall, Choice Hotels International has a GF Score™ of 87/100, reflecting its overall financial health beyond just this single metric.
How does Choice Hotels International's 1-Year Sharpe Ratio compare to WH and CVEO?
Choice Hotels International's 1-Year Sharpe Ratio of -0.60 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 1-Year Sharpe Ratio for a Travel & Leisure company?
A good 1-Year Sharpe Ratio depends on the Travel & Leisure industry context. However, 1-Year Sharpe Ratio 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 1-Year Sharpe Ratio mean?
A high 1-Year Sharpe Ratio can signal that a stock is expensive relative to its fundamentals. 1-Year Sharpe Ratio measures the additional return that an investor receives per unit of increase in risk. View historical data for Choice Hotels International and its competitors. Choice Hotels International's current 1-Year Sharpe Ratio is -0.60. 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 1-Year Sharpe Ratio of -0.60. The stock's GF Value™ is €113.16, compared to a current price of €91.00 — trading 19.6% below its estimated fair value. The current 1-Year Sharpe Ratio is -0.60. Choice Hotels International's overall GF Score™ is 87/100 with 5 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is 1-Year Sharpe Ratio calculated?
1-Year Sharpe Ratio is calculated from a company's financial statements. For Choice Hotels International (FRA:CZH), the current 1-Year Sharpe Ratio is -0.60 as of Aug. 31, 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 €91.00 is trading 19.6% below its estimated GF Value™ of €113.16.
Key valuation signals for FRA:CZH:
1-Year Sharpe Ratio: -0.60
GF Value™: €113.16 vs. price of €91.00 (19.6% below fair value)
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.
87GF Score
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