Choice Hotels International
Financial ratios & Valuation

Forward Multiples (2025 – 2027)

202520262027
Price/Earnings ratio
21.2519.0019.34
Price/Sales ratio
4.564.394.34
Earnings per Share (EPS)
$6.31$7.05$6.93

Historical Multiples (2014 – 2023)

2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 TTM Median
Valuation Ratios
Price/Earnings ratio
26.5422.5022.6038.2218.6825.6878.1129.8918.5122.0626.1218.68
Price/Sales ratio
4.313.353.404.353.885.137.608.074.383.694.253.88
Price/Book Value ratio
-7.62-7.27-10.11-20.70-22.00-243.53-1.02K32.4939.76160.22-68.69-243.53
Price/Cash Flow ratio
17.7818.0220.7117.0616.6421.1651.1822.5116.7519.2323.1016.64
Price/Free Cash Flow ratio
20.0621.8025.3418.9720.9027.7278.4128.2422.4831.9949.3220.90
Price/Earnings Growth ratio
2.683.652.10-2.100.215.78-1.180.101.13-1.424.640.21
Dividend Yield
1.33%1.56%1.46%1.10%1.20%0.83%0.42%0.28%0.85%0.98%0.61%0.83%
Profitability Indicator Ratios
Gross Profit Margin
45.56%43.15%43.14%43.70%48.69%46.75%40.19%56.07%49.93%44.70%44.01%46.75%
Operating Profit Margin
28.30%26.20%25.83%26.25%30.58%28.58%15.76%40.11%34.13%24.28%25.68%28.58%
Pretax Profit Margin
22.92%21.39%21.62%22.23%26.24%24.21%6.84%35.20%31.15%21.82%21.21%24.21%
Net Profit Margin
16.24%14.88%15.07%11.40%20.77%19.99%9.73%27.02%23.69%16.74%16.27%19.99%
Effective Tax Rate
30.09%30.41%30.30%48.70%20.82%17.43%-42.22%23.25%23.95%23.28%23.30%20.82%
Return on Assets
19.02%17.85%16.34%12.38%19.00%16.07%4.74%14.95%15.80%10.79%9.93%16.07%
Return On Equity
-28.72%-32.33%-44.76%-54.16%-117.73%-947.97%-1310.62%108.67%214.76%726.18%-504.10%-947.97%
Return on Capital Employed
47.98%44.26%40.57%41.76%38.84%30.03%9.16%31.50%28.72%25.82%19.32%30.03%
Liquidity Ratios
Current Ratio
1.751.491.301.360.760.721.69N/AN/AN/A0.700.72
Quick Ratio
1.751.491.301.360.680.721.691.330.790.310.700.68
Cash ratio
1.070.920.760.790.080.100.910.890.090.020.120.08
Days of Sales Outstanding
44.1437.9242.3745.6048.3746.3470.6952.2756.3946.3049.5548.37
Days of Inventory outstanding
0.000.00N/A0.0017.36N/AN/A0.000.00N/AN/AN/A
Operating Cycle
44.1437.9242.3745.6065.7346.3470.6952.2756.3946.3049.5546.34
Days of Payables Outstanding
50.5348.1133.3743.6650.2245.1665.7063.0761.8156.1164.1250.22
Cash Conversion Cycle
-6.38-10.188.991.9415.511.184.98-10.79-5.41-9.81-14.561.18
Debt Ratios
Debt Ratio
1.221.130.980.780.660.610.660.540.570.650.710.66
Debt Equity Ratio
-1.85-2.05-2.69-3.42-4.10-36.22-184.063.987.7844.04-18.83-36.22
Long-term Debt to Capitalization
2.211.941.581.411.321.021.000.760.880.961.051.05
Total Debt to Capitalization
2.171.941.581.411.321.021.000.790.880.971.051.05
Interest Coverage Ratio
5.175.265.365.877.027.122.79N/AN/AN/A4.787.12
Cash Flow to Debt Ratio
0.230.190.180.350.320.310.100.360.300.180.150.31
Company Equity Multiplier
-1.50-1.81-2.73-4.37-6.19-58.97-275.967.2613.5967.27-26.45-58.97
Cash Flow Ratios
Operating Cash Flow / Sales Ratio
0.240.180.160.250.230.240.140.350.260.190.180.24
Free Cash Flow / Operating Cash Flow Ratio
0.880.820.810.890.790.760.650.790.740.600.460.76
Cash Flow Coverage Ratio
0.230.190.180.350.320.310.100.360.300.180.150.31
Short Term Coverage Ratio
14.89134.23127.22208.90221.4136.02N/A1.77123.340.59N/A36.02
Dividend Payout Ratio
35.34%35.31%33.13%42.34%22.51%21.57%33.52%8.66%15.81%21.83%22.49%22.49%