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Sunstone Hotel Investors (FRA:UF2) 5-Year Yield-on-Cost % Explanation
Of course the risk here is that the company may not raise its dividends as it did before. The key is to select the companies that can consistently raise its dividends. Usually companies with long history of raising dividends tend to do so.
Sunstone Hotel Investors 5-Year Yield-on-Cost % Related Terms
FRA:UF2 vs PEB, XHR, RLJ: 5-Year Yield-on-Cost % Comparison
For the REIT - Hotel & Motel subindustry, Sunstone Hotel Investors's 5-Year Yield-on-Cost %, along with its competitors' market caps and 5-Year Yield-on-Cost % 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.
Sunstone Hotel Investors 5-Year Yield-on-Cost % vs REITs Industry
For the REITs industry and Real Estate sector, Sunstone Hotel Investors's 5-Year Yield-on-Cost % distribution charts can be found below:
* The bar in red indicates where Sunstone Hotel Investors's 5-Year Yield-on-Cost % falls into.
Sunstone Hotel Investors 5-Year Yield-on-Cost % Calculation
Dividend Yield % and dividend growth of a stock is an important factor for income investors. But if company A raises its dividend constantly faster than company B, company A's future dividend yield might be much higher than Company B's even if their yields are the same now and their stock prices do not change.
Yield on Cost assumes that you buy and the stock today, and hold it for 5 years. If the company raises it dividends at the same rate as it did over the past 5 years, the dividends investors receive annually in 5 years relative to the stock price today.
Sunstone Hotel Investors (FRA:UF2) has a 5-Year Yield-on-Cost % of 3.30 as of Sep. 03, 2026. 5-Year Yield on Cost measures the expected yield based on a company's current yield and 5-year dividend growth. View historical data on Sunstone Hotel Investors and its competitors. This is 20% below median its historical median of 4.13. Over the past decade, Sunstone Hotel Investors' 5-Year Yield-on-Cost % has ranged from 0.38 to 11.44. According to the industry distribution chart, Sunstone Hotel Investors ranks #753 out of 838 companies in the REITs industry, placing it in the top 89.9%.
Is Sunstone Hotel Investors' 5-Year Yield-on-Cost % too high?
Sunstone Hotel Investors' current 5-Year Yield-on-Cost % of 3.30 is 20% below median its 10-year median of 4.13. Over the past 10 years, this metric has ranged from a low of 0.38 to a high of 11.44. The REITs industry median 5-Year Yield-on-Cost % is 7.55. Sunstone Hotel Investors' value of 3.30 is 56.3% below this industry median. Based on the distribution chart, Sunstone Hotel Investors ranks #753 out of 838 companies in the REITs industry, which is in the bottom quartile relative to peers. Overall, Sunstone Hotel Investors has a GF Score™ of 77/100, reflecting its overall financial health beyond just this single metric.
How does Sunstone Hotel Investors' 5-Year Yield-on-Cost % compare to PEB and XHR?
According to the REITs industry distribution chart, Sunstone Hotel Investors ranks #753 out of 838 companies for 5-Year Yield-on-Cost %. This places Sunstone Hotel Investors in the lower half of its industry. The industry median 5-Year Yield-on-Cost % is 7.55. Sunstone Hotel Investors' value of 3.30 is 56.3% below this benchmark. Historically, Sunstone Hotel Investors' own 5-Year Yield-on-Cost % has ranged from 0.38 to 11.44 over the past decade. While the company's 10-year median is 4.13 vs. the industry median of 7.55, Sunstone Hotel Investors 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 5-Year Yield-on-Cost % for a REITs company?
The median 5-Year Yield-on-Cost % among REITs companies is 7.55, based on 838 companies in the industry. Companies in the top quartile (top 25%) have a 5-Year Yield-on-Cost % significantly above this median, while those in the bottom quartile fall well below. However, 5-Year Yield-on-Cost % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Sunstone Hotel Investors's current 5-Year Yield-on-Cost % of 3.30 is 56.3% 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 5-Year Yield-on-Cost % mean?
A high 5-Year Yield-on-Cost % can signal that a stock is expensive relative to its fundamentals. 5-Year Yield on Cost measures the expected yield based on a company's current yield and 5-year dividend growth. View historical data on Sunstone Hotel Investors and its competitors. For the REITs industry, the median 5-Year Yield-on-Cost % is 7.55 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Sunstone Hotel Investors's current 5-Year Yield-on-Cost % is 3.30, which is 20% below median its own 10-year median of 4.13. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Sunstone Hotel Investors stock overvalued right now?
Sunstone Hotel Investors (FRA:UF2) has a current 5-Year Yield-on-Cost % of 3.30. The stock's GF Value™ is €9.60, compared to a current price of €9.45 — trading 1.6% below its estimated fair value. The current 5-Year Yield-on-Cost % is 3.30, which is 20% below median its 10-year median of 4.13 and 56.3% below the REITs industry median of 7.55. Sunstone Hotel Investors' overall GF Score™ is 77/100 with 9 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is 5-Year Yield-on-Cost % calculated?
5-Year Yield-on-Cost % is calculated from a company's financial statements. For Sunstone Hotel Investors (FRA:UF2), the current 5-Year Yield-on-Cost % is 3.30 as of Sep. 03, 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 Sunstone Hotel Investors (FRA:UF2) Overvalued in 2026?
Based on GuruFocus' analysis, Sunstone Hotel Investors stock appears to be undervalued.
The current stock price of €9.45 is trading 1.6% below its estimated GF Value™ of €9.60.
Key valuation signals for FRA:UF2:
5-Year Yield-on-Cost %: 3.30 (20% below median its 10-year median of 4.13)
GF Value™: €9.60 vs. price of €9.45 (1.6% below fair value)
Industry Position: 56.3% below the REITs median (#753 of 838)
No single metric tells the full story. See the FRA:UF2 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Sunstone Hotel Investors Inc is a real estate investment trust that acquires, owns, manages, and renovates the full-service hotel and select-service hotel properties across various states in the United States. Its firm's portfolio consists upper upscale and luxury hotels located in convention, resort destination and urban markets. Its majority of the hotels operate under a brand owned by Marriott, Hilton, Hyatt, Four Seasons or Montage. It operates geographically in California which generates the majority of its revenue; Florida; and Hawaii. The company's sole source of income is hotel revenue from its Hotel Ownership Segment.
77GF Score
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