Choice Hotels International Inc (CHH) is undervalued and Marriott International Inc (MAR) is overvalued.
Against our estimates of intrinsic value, CHH trades at the wider discount: a margin of safety of +31%, against -36% for MAR.
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 10.3% (average of 3 methods) values the shares at $256.77; the price of $348.06 is 36% above that value, and 73% of that value comes from beyond year five.
Leak Score 63/100 on 8 of 12 signals
| Metric | CHH | MAR |
|---|---|---|
| Verdict | Undervalued | Overvalued |
| Price | $100.32 | $348.06 |
| Intrinsic value | $145.47 | $256.77 |
| Margin of safety | +31% | -36% |
| Leak Score | 100/100 (3/12) | 63/100 (8/12) |
| Market cap | $4.5B | $90.8B |
| Revenue growth, 5 years | 15.6% | 19.9% |
| Operating margin | 25.5% | 15.7% |
| Net margin | 20.2% | 9.6% |
| Return on equity | 563.8% | — |
| Debt to equity | 14.82 | — |
| P/E | 14.2x | 36.1x |
| Forward P/E | 13.4x | 26.6x |
| P/B | 31.9x | — |
| Dividend yield | 1.1% | 0.8% |