Service Properties Trust (SVC) 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

+4529.0%

$289.31

vs $6.25 price

Levered DCF

-$88.89

After debt service

Piotroski score

4 / 9

Average

Altman Z-score

-0.78

Distress zone

Rating

Overall 2 / 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	-1.51×	-1.52×	-42.7×	-8.89×	-2.66×	-6.28×	15.4×	21.13×
P/B	0.47×	0.49×	1.15×	0.86×	0.93×	0.9×	1.6×	1.51×
P/S	0.17×	0.22×	0.75×	0.64×	0.97×	1.49×	1.73×	1.71×
EV / EBITDA	11.49×	12.94×	10.15×	11.59×	26.73×	15.85×	11.94×	10.28×
Gross margin	31.2%	31.8%	33.7%	33.4%	31.4%	46.0%	39.0%	39.3%
Operating margin	11.6%	10.1%	10.8%	9.5%	-4.7%	0.0%	36.6%	17.2%
Net margin	-11.1%	-14.5%	-1.7%	-7.1%	-36.4%	-24.6%	11.2%	8.1%
Current ratio	21.11×	0.29×	0.69×	0.46×	1.04×	0.35×	0.32×	0.37×
Debt / equity	8.48×	6.7×	4.5×	4.07×	4.59×	2.95×	2.42×	1.61×
Interest coverage	0.57×	0.54×	0.6×	0.52×	-0.19×	0×	3.77×	2.02×
Dividend yield	2.2%	24.1%	9.4%	3.2%	0.5%	5.0%	8.8%	8.8%
Payout ratio	-3.3%	-36.7%	-404.0%	-28.7%	-1.2%	-30.1%	136.1%	186.7%

Key metrics by fiscal year

Metric	FY2025	FY2024	FY2023	FY2022	FY2021	FY2020	FY2019	FY2018
Return on equity	-31.3%	-32.3%	-2.7%	-9.5%	-35.0%	-14.8%	10.4%	7.2%
Return on invested capital	44.9%	2.9%	2.8%	2.5%	-0.8%	0.0%	9.7%	5.8%
Return on assets	-3.1%	-3.9%	-0.4%	-1.8%	-5.9%	-3.6%	2.9%	2.6%
Free cash flow yield	38.6%	33.2%	34.5%	20.2%	3.4%	2.0%	15.5%	15.2%
Earnings yield	-66.3%	-65.6%	-2.3%	-11.0%	-37.6%	-16.5%	6.5%	4.7%
Enterprise value	$5.4B	$6B	$6.7B	$6.8B	$7.6B	$8B	$10B	$8.1B
Net debt / EBITDA	10.85×	12.03×	8.03×	9.55×	21.67×	12.12×	7.18×	5.28×
Cash conversion cycle (days)	-134	-150	-100	-118	-142	-169	-76	-40