Apple Hospitality REIT Inc (APLE) is slightly undervalued and Sunstone Hotel Investors Inc (SHO) is overvalued.
Against our estimates of intrinsic value, APLE trades at the wider discount: a margin of safety of +14%, against -50% for SHO.
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 8.3% (average of 3 methods) values the shares at $7.42; the price of $11.09 is 50% above that value, and 80% of that value comes from beyond year five.
Leak Score 0/100 on 2 of 12 signals
| Metric | APLE | SHO |
|---|---|---|
| Verdict | Slightly undervalued | Overvalued |
| Price | $15.78 | $11.09 |
| Intrinsic value | $18.37 | $7.42 |
| Margin of safety | +14% | -50% |
| Leak Score | 30/100 (2/12) | 0/100 (2/12) |
| Market cap | $3.7B | $2.1B |
| Revenue growth, 5 years | 18.6% | 29.1% |
| Operating margin | 17.8% | 9.7% |
| Net margin | 12.2% | 4.2% |
| Return on equity | 5.5% | 2.7% |
| Debt to equity | 0.51 | 0.52 |
| P/E | 21.3x | 49.4x |
| Forward P/E | 21.3x | 48.8x |
| P/B | 1.2x | 1.3x |
| Dividend yield | 6.1% | 3.3% |