WH
Wyndham Hotels & Resorts, Inc.
$82.41
Stable Earnings Power
65%
P/Adj-EPS × Normalized Multiple
Strong
·
Conviction
Overvalued
Trading 49.2% above fair value
You pay
$82.41
Bear
$44.19
Fair
$55.25
Bull
$66.30
Bear
$44.19
-46.4%
$2.74 × 12x P/E
Fair
$55.25
-33.0%
$2.74 × 15x P/E
Bull
$66.30
-19.6%
$2.74 × 18x P/E
Key Value Driver
Normalized P/E multiple (15x base case)
Implied Market Multiple
30.0x
Summary
Our base-case estimate uses a valuation based on adjusted earnings per share and a normalized price-to-earnings multiple. We then blend that result with the average analyst price target of $97.50 from 22 analysts, using a 25% weight on analyst consensus. That produces an estimated intrinsic value of $55.25 per share.
Warnings
Dividend-based valuation: $172.96 (above our primary estimate by 320%). Large gaps may signal the dividend doesn't reflect full earning power.
Wall Street's average price target is $97.50 (from 22 analysts). Our estimate is 58% below the consensus -- consider that gap carefully.
Key Risks
- Growth DCF inappropriate — terminal value assumptions dominate
- EV/EBITDA misleading for regulated businesses where capex is mandated
- Regulatory risk is a fat tail not visible in normal multiples