Sunstone Hotel Investors, Inc. (SHO) 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

+254.4%

$45.86

vs $12.94 price

Levered DCF

$17.34

After debt service

Piotroski score

7 / 9

Strong

Altman Z-score

1.45

Distress zone

Rating

Overall 3 / 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	210.85×	84.57×	11.54×	28.41×	73.31×	-5.96×	25.78×	11.72×
P/B	0.89×	1.14×	1.02×	0.99×	1.15×	1.19×	1.22×	1.1×
P/S	1.8×	2.64×	2.24×	2.25×	4.98×	9.13×	2.82×	2.54×
EV / EBITDA	12×	14.63×	6.74×	11.17×	15.77×	-13.24×	9.83×	6.93×
Gross margin	4.7%	46.6%	48.3%	49.1%	40.6%	6.1%	52.4%	52.9%
Operating margin	7.8%	8.7%	12.0%	10.9%	-16.8%	0.0%	16.0%	25.8%
Net margin	2.6%	4.8%	21.0%	9.6%	6.7%	-151.1%	12.2%	21.6%
Current ratio	2.3×	2.49×	3.33×	0.65×	1.6×	4.79×	2.81×	3.9×
Debt / equity	0.48×	0.41×	0.38×	0.4×	0.29×	0.39×	0.4×	0.38×
Interest coverage	1.52×	1.65×	2.42×	3.1×	-2.69×	0×	3.29×	6.27×
Dividend yield	5.0%	3.8%	2.7%	1.2%	0.5%	6.4%	5.4%	6.0%
Payout ratio	351.6%	210.3%	28.9%	28.4%	39.9%	-38.6%	125.4%	70.9%

Key metrics by fiscal year

Metric	FY2025	FY2024	FY2023	FY2022	FY2021	FY2020	FY2019	FY2018
Return on equity	1.3%	2.1%	9.5%	4.2%	1.6%	-19.8%	5.3%	9.4%
Return on invested capital	2.5%	2.6%	3.8%	3.3%	-3.0%	0.0%	4.9%	7.9%
Return on assets	0.8%	1.4%	6.6%	2.8%	1.1%	-13.6%	3.5%	6.3%
Free cash flow yield	4.5%	7.1%	9.0%	3.9%	-1.4%	-4.8%	9.3%	9.8%
Earnings yield	1.4%	1.8%	9.4%	4.3%	1.4%	-16.5%	4.3%	8.5%
Enterprise value	$2.5B	$3.1B	$2.6B	$2.8B	$3.1B	$2.9B	$3.4B	$3.1B
Net debt / EBITDA	3.85×	3.48×	1.05×	2.93×	2.66×	-1.95×	0.64×	0.43×
Cash conversion cycle (days)	-8	-18	-23	-35	-37	-42	-13	-9