Pebblebrook Hotel Trust (PEB) is overvalued and RLJ Lodging Trust (RLJ) is undervalued.
Against our estimates of intrinsic value, RLJ trades at the wider discount: a margin of safety of +76%, against -70% for PEB.
Values as of the 22 Sept 2026 close.
Discounting its cash flows at 8.1% values the shares at $10.71; the price of $18.26 is 70% above that value, and 80% of that value comes from beyond year five.
Leak Score 0/100 on 2 of 12 signals
Discounting its cash flows at 8.3% (average of 3 methods) values the shares at $45.88; the price of $11.03 is 76% below that value, and 79% of that value comes from beyond year five.
Leak Score 72/100 on 8 of 12 signals
| Metric | PEB | RLJ |
|---|---|---|
| Verdict | Overvalued | Undervalued |
| Price | $18.26 | $11.03 |
| Intrinsic value | $10.71 | $45.88 |
| Margin of safety | -70% | +76% |
| Leak Score | 0/100 (2/12) | 72/100 (8/12) |
| Market cap | $2.1B | $1.7B |
| Revenue growth, 5 years | 27.2% | 23.3% |
| Operating margin | 7.4% | 9.5% |
| Net margin | -5.3% | 0.1% |
| Return on equity | -1.8% | 1.3% |
| Debt to equity | 1.02 | 1.31 |
| P/E | — | 1869.5x |
| Forward P/E | — | 320.1x |
| P/B | 0.8x | 0.9x |
| Dividend yield | 0.2% | 5.4% |