Park Hotels & Resorts Inc (PK) is undervalued and Sunstone Hotel Investors Inc (SHO) is overvalued.
Against our estimates of intrinsic value, PK trades at the wider discount: a margin of safety of +22%, against -50% for SHO.
Values as of the 22 Sept 2026 close.
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
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 | PK | SHO |
|---|---|---|
| Verdict | Undervalued | Overvalued |
| Price | $15.19 | $11.09 |
| Intrinsic value | $19.59 | $7.42 |
| Margin of safety | +22% | -50% |
| Leak Score | 56/100 (2/12) | 0/100 (2/12) |
| Market cap | $3.1B | $2.1B |
| Revenue growth, 5 years | 24.4% | 29.1% |
| Operating margin | 11.9% | 9.7% |
| Net margin | -6.5% | 4.2% |
| Return on equity | -5.0% | 2.7% |
| Debt to equity | 1.33 | 0.52 |
| P/E | — | 49.4x |
| Forward P/E | 26.7x | 48.8x |
| P/B | 1.0x | 1.3x |
| Dividend yield | 6.7% | 3.3% |