RLJ Lodging Trust (RLJ) is undervalued and Sunstone Hotel Investors Inc (SHO) is overvalued.
Against our estimates of intrinsic value, RLJ trades at the wider discount: a margin of safety of +76%, against -50% for SHO.
Values as of the 22 Sept 2026 close.
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
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 | RLJ | SHO |
|---|---|---|
| Verdict | Undervalued | Overvalued |
| Price | $11.03 | $11.09 |
| Intrinsic value | $45.88 | $7.42 |
| Margin of safety | +76% | -50% |
| Leak Score | 72/100 (8/12) | 0/100 (2/12) |
| Market cap | $1.7B | $2.1B |
| Revenue growth, 5 years | 23.3% | 29.1% |
| Operating margin | 9.5% | 9.7% |
| Net margin | 0.1% | 4.2% |
| Return on equity | 1.3% | 2.7% |
| Debt to equity | 1.31 | 0.52 |
| P/E | 1869.5x | 49.4x |
| Forward P/E | 320.1x | 48.8x |
| P/B | 0.9x | 1.3x |
| Dividend yield | 5.4% | 3.3% |