Apple Hospitality REIT Inc (APLE) is slightly undervalued and Diamondrock Hospitality Co (DRH) is undervalued.
Against our estimates of intrinsic value, DRH trades at the wider discount: a margin of safety of +37%, against +14% for APLE.
Values as of the 22 Sept 2026 close.
Discounting its cash flows at 8.4% (average of 3 methods) values the shares at $18.37; the price of $15.78 is 14% below that value, and 79% of that value comes from beyond year five.
Leak Score 30/100 on 2 of 12 signals
Discounting its cash flows at 8.6% (average of 3 methods) values the shares at $19.53; the price of $12.31 is 37% below that value, and 79% of that value comes from beyond year five.
Leak Score 54/100 on 3 of 12 signals
| Metric | APLE | DRH |
|---|---|---|
| Verdict | Slightly undervalued | Undervalued |
| Price | $15.78 | $12.31 |
| Intrinsic value | $18.37 | $19.53 |
| Margin of safety | +14% | +37% |
| Leak Score | 30/100 (2/12) | 54/100 (3/12) |
| Market cap | $3.7B | $2.5B |
| Revenue growth, 5 years | 18.6% | 30.2% |
| Operating margin | 17.8% | 16.3% |
| Net margin | 12.2% | 13.1% |
| Return on equity | 5.5% | 9.9% |
| Debt to equity | 0.51 | 0.79 |
| P/E | 21.3x | 17.1x |
| Forward P/E | 21.3x | 18.5x |
| P/B | 1.2x | 1.6x |
| Dividend yield | 6.1% | 3.3% |