Pebblebrook Hotel Trust (PEB) is overvalued and Sunstone Hotel Investors Inc (SHO) is overvalued.
Both trade above our estimate of their intrinsic value. SHO is the closer of the two: -50%, 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 $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 | PEB | SHO |
|---|---|---|
| Verdict | Overvalued | Overvalued |
| Price | $18.26 | $11.09 |
| Intrinsic value | $10.71 | $7.42 |
| Margin of safety | -70% | -50% |
| Leak Score | 0/100 (2/12) | 0/100 (2/12) |
| Market cap | $2.1B | $2.1B |
| Revenue growth, 5 years | 27.2% | 29.1% |
| Operating margin | 7.4% | 9.7% |
| Net margin | -5.3% | 4.2% |
| Return on equity | -1.8% | 2.7% |
| Debt to equity | 1.02 | 0.52 |
| P/E | — | 49.4x |
| Forward P/E | — | 48.8x |
| P/B | 0.8x | 1.3x |
| Dividend yield | 0.2% | 3.3% |