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: $106.33 DETAILS
HIGH: $128.00
LOW: $86.00
MEDIAN: $105.00
CONSENSUS: $106.33
DOWNSIDE: 3.09%
AlphaVal

AlphaVal

Deterministic, archetype-aware fair value

Platform & Compounding FCF 85% confidence

Primary model: Two-stage FCF DCF

Valuation Signal Overvalued Strong
Trading 312.8% above fair value
Current Price $109.72
Bear Case $0.00 100.0% downside ($0.00 - $109.72) / $109.72 = -100.0% 4% stage 1 growth, 11% discount
Fair Value $26.58 75.8% downside ($26.58 - $109.72) / $109.72 = -75.8% 7% stage 1 growth, 11% discount
Bull Case $0.00 100.0% downside ($0.00 - $109.72) / $109.72 = -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 73.8x
Market is pricing in (growth) 26.4% vs our 6.6% base

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 $106.33 from 28 analysts, using a 25% weight on analyst consensus. That produces an estimated intrinsic value of $26.58 per share.

Warnings

Wall Street's average price target is $106.33 (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