Choice Hotels International Inc (CHH) is undervalued and H World Group Limited ADR (HTHT) is slightly undervalued.
Against our estimates of intrinsic value, CHH trades at the wider discount: a margin of safety of +31%, against +11% for HTHT.
Values as of the 22 Sept 2026 close.
Discounting its cash flows at 7.8% (average of 3 methods) values the shares at $145.47; the price of $100.32 is 31% below that value, and 81% of that value comes from beyond year five.
Leak Score 100/100 on 3 of 12 signals
Discounting its cash flows at 10.9% (average of 3 methods) values the shares at $48.85; the price of $43.33 is 11% below that value, and 71% of that value comes from beyond year five.
Leak Score 51/100 on 3 of 12 signals
| Metric | CHH | HTHT |
|---|---|---|
| Verdict | Undervalued | Slightly undervalued |
| Price | $100.32 | $43.33 |
| Intrinsic value | $145.47 | $48.85 |
| Margin of safety | +31% | +11% |
| Leak Score | 100/100 (3/12) | 51/100 (3/12) |
| Market cap | $4.5B | $13.3B |
| Revenue growth, 5 years | 15.6% | 19.0% |
| Operating margin | 25.5% | 27.3% |
| Net margin | 20.2% | 18.9% |
| Return on equity | 563.8% | 38.2% |
| Debt to equity | 14.82 | 2.43 |
| P/E | 14.2x | 19.6x |
| Forward P/E | 13.4x | 14.3x |
| P/B | 31.9x | 6.4x |
| Dividend yield | 1.1% | 4.8% |