Choice Hotels International, Inc. logo CHH - Choice Hotels International, Inc.

Price: -- -- | CONSENSUS: Hold DETAILS
STRONG
BUY
0
BUY 3
HOLD 18
SELL 7
STRONG
SELL
0
| PRICE TARGET: $110.25 DETAILS
HIGH: $128.00
LOW: $86.00
MEDIAN: $112.00
CONSENSUS: $110.25
DOWNSIDE: 2.54%
AlphaVal

AlphaVal

Deterministic, archetype-aware fair value

Platform & Compounding FCF 85% confidence

Primary model: Two-stage FCF DCF

Valuation Signal Overvalued Strong
Trading 310.4% above fair value
Current Price $113.12
Bear Case $0.00 100.0% downside ($0.00 - $113.12) / $113.12 = -100.0% 4% stage 1 growth, 11% discount
Fair Value $27.56 75.6% downside ($27.56 - $113.12) / $113.12 = -75.6% 7% stage 1 growth, 11% discount
Bull Case $0.00 100.0% downside ($0.00 - $113.12) / $113.12 = -100.0% 9% stage 1 growth, 11% discount

Adjust Assumptions

6.6%
11.0%
3.0%

Key Value Driver

FCF growth rate (7% base case)

Terminal Value % of EV 36%
Implied Market Multiple 75.4x

Plain-Language Summary

Our base-case estimate uses a two-stage discounted cash flow model based on free cash flow. We then blend that result with the average analyst price target of $110.25 from 28 analysts, using a 25% weight on analyst consensus. That produces an estimated intrinsic value of $27.56 per share.

Warnings

Wall Street's average price target is $110.25 (from 28 analysts). Our estimate is 100% below the consensus -- consider that gap carefully.

Key Risks

  • P/E alone misleads — earnings depressed by growth investment
  • Cyclical or commodity businesses may be misclassified as platforms
  • Terminal value dominance suggests sensitivity to long-run assumptions