Diamondrock Hospitality Co (DRH) is undervalued and Park Hotels & Resorts Inc (PK) is undervalued.
Against our estimates of intrinsic value, DRH trades at the wider discount: a margin of safety of +37%, against +22% for PK.
Values as of the 22 Sept 2026 close.
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
Discounting its cash flows at 7.9% (average of 2 methods) values the shares at $19.59; the price of $15.19 is 22% below that value, and 81% of that value comes from beyond year five.
Leak Score 56/100 on 2 of 12 signals
| Metric | DRH | PK |
|---|---|---|
| Verdict | Undervalued | Undervalued |
| Price | $12.31 | $15.19 |
| Intrinsic value | $19.53 | $19.59 |
| Margin of safety | +37% | +22% |
| Leak Score | 54/100 (3/12) | 56/100 (2/12) |
| Market cap | $2.5B | $3.1B |
| Revenue growth, 5 years | 30.2% | 24.4% |
| Operating margin | 16.3% | 11.9% |
| Net margin | 13.1% | -6.5% |
| Return on equity | 9.9% | -5.0% |
| Debt to equity | 0.79 | 1.33 |
| P/E | 17.1x | — |
| Forward P/E | 18.5x | 26.7x |
| P/B | 1.6x | 1.0x |
| Dividend yield | 3.3% | 6.7% |