DiamondRock Hospitality Company (DRH) Valuation

Valuation

Model-based estimates, not advice. The DCF is the discounted-cash-flow value per share; compare it with the price, not as a target.

DCF fair value

-153.7%

-$7.80

vs $14.52 price

Levered DCF

$10.03

After debt service

Piotroski score

7 / 9

Strong

Altman Z-score

1.53

Distress zone

Rating

A-

Overall 4 / 5

Ratios by fiscal year

Margins and yields are shares of revenue, equity or price; multiples are ×.

Metric	FY2025	FY2024	FY2023	FY2022	FY2021	FY2020	FY2019	FY2018
P/E	20.36×	50.17×	26.08×	17.43×	-10.01×	-4.19×	12.18×	21.12×
P/B	1.28×	1.19×	1.21×	1.09×	1.34×	0.97×	1.17×	0.99×
P/S	1.65×	1.68×	1.85×	1.74×	3.59×	5.56×	2.39×	2.16×
EV / EBITDA	10.8×	13.1×	11.98×	11.38×	-60.9×	-10.66×	15.43×	11.83×
Gross margin	55.2%	54.7%	27.3%	56.8%	49.7%	-13.7%	26.4%	30.6%
Operating margin	14.4%	12.7%	24.3%	16.2%	-5.3%	0.0%	23.4%	12.1%
Net margin	9.1%	4.3%	8.0%	10.9%	-34.3%	-131.7%	19.6%	10.2%
Current ratio	0.19×	0.94×	1.04×	0.9×	0.55×	0.62×	0.87×	0.57×
Debt / equity	0.82×	0.74×	0.79×	0.82×	0.78×	0.67×	0.66×	0.52×
Interest coverage	2.58×	2.18×	4.01×	4.09×	-0.81×	0×	4.7×	2.56×
Dividend yield	5.9%	1.9%	2.1%	0.9%	0.5%	1.7%	4.6%	5.5%
Payout ratio	106.6%	73.7%	48.3%	14.9%	-5.1%	-7.3%	55.6%	117.0%

Key metrics by fiscal year

Metric	FY2025	FY2024	FY2023	FY2022	FY2021	FY2020	FY2019	FY2018
Return on equity	7.0%	3.0%	5.3%	6.9%	-12.8%	-23.0%	9.6%	4.7%
Return on invested capital	6.8%	5.0%	8.9%	5.5%	-1.1%	0.0%	6.1%	3.5%
Return on assets	3.4%	1.5%	2.7%	3.4%	-6.6%	-12.5%	5.4%	2.7%
Free cash flow yield	8.8%	7.5%	6.0%	-2.5%	-13.5%	-10.4%	-0.3%	5.6%
Earnings yield	5.5%	2.5%	4.3%	6.3%	-9.5%	-23.7%	8.2%	4.7%
Enterprise value	$3B	$3B	$3.2B	$3B	$3.2B	$2.7B	$3.4B	$2.8B
Net debt / EBITDA	4.07×	4.8×	4.44×	4.71×	-21.81×	-4.11×	5.23×	3.95×
Cash conversion cycle (days)	-96	-96	-24	-76	-97	-68	-46	-10