Stock fact sheet · data as of
Braemar Hotels & Resorts Inc. (BHR): fair value, margin of safety and Wheel Score
Real Estate · REIT - Hotel & Motel · United States · Speculative / Distressed
Is BHR undervalued?
Braemar Hotels & Resorts Inc. (BHR) closed at 1.39 on 16 Oct 2026. The GLS average fair value - the simple average of the 3 valuation models that produced a positive number - is 34.92, which puts the price 96% below it. 3 of the 3 models value the shares above the current price. A gap this wide is rare in our universe of ~7,400 US stocks and is exactly what the Value part of the Wheel Score rewards; it is also where the question "why is it this cheap?" matters most.
Only 3 of the nine models produced a value (DCF, 10 Cap, DDM); the others need a dividend, positive free cash flow or positive book value the company does not have yet, so the average rests on a narrow base.
The nightly engine files BHR under Speculative / Distressed - negative earnings or a Piotroski score of 3 or less - which caps its Wheel Score at 45 and keeps it out of the Sunday Scan.
Nine valuation models for BHR
Each model turns the latest filed numbers into a value per share; the GLS fair value is the simple average of the ones that produce a positive number. The last two rows are shown for reference and never enter the average. The Quote page lets you switch any model off and add your own margin of safety.
| Model | Value | vs price | What it measures |
|---|---|---|---|
| DCF | 97.87 | +6941% | Present value of the projected free cash flows, discounted at the cost of capital |
| Graham Number | - | - | The most a defensive investor pays for the earnings and book value per share; no value tonight |
| Graham Growth | - | - | Graham's growth formula: EPS × (8.5 + 2 × growth), adjusted for bond yields; no value tonight |
| Lynch | - | - | EPS × the earnings growth rate (PEG of 1), growth capped at 25%; no value tonight |
| GLS Growth | - | - | EPS compounded ten years at the blended growth rate, discounted back at 15% a year; no value tonight |
| 10 Cap | 5.42 | +290% | Owner's earnings (operating cash flow less maintenance capex) capitalised at 10% |
| Payback Time | - | - | Eight years of compounded free cash flow: the price at which the business pays for itself; no value tonight |
| DDM | 1.47 | +6% | Dividend discount model: next year's dividend ÷ (10% − 3% growth); needs a dividend |
| EPV | - | - | Earnings power value: current EPS capitalised at 9% with no growth; no value tonight |
| Zombie (liquidation) | -17.10 | -1330% | Current assets less all liabilities, per share: the balance-sheet floor. Not in the average |
| Wall St target | 2.50 | +80% | Analysts' average 12-month price target. Not in the average |
Quality and financial health
Financial health is average - BHR passes 5 of the nine Piotroski tests, which falls one point short of the Sunday Scan's "6 or more" rule. The Financials tab on the Quote page shows which tests fail. The GLS Moat score is low at 0.8 out of 10, which says the ten-year record of revenue, earnings, margins and returns on capital has been inconsistent - growth and shocks rather than steady compounding.
Returns on capital are thin or negative - ROIC -1.3%, ROE -4.4%, ROA -1.2% - with debt at 2.33 times equity and a free-cash-flow yield of 4.5%. Debt of 2.33 times equity is on the high side for the sector and is worth checking against the cash flow before treating the stock as a long-term hold.
The dividend yield is high at 7.19% (payout ratio -1336%). A yield this size is often the market's way of pricing a risk to the payout, so the health score and cash flow matter more than usual. Revenue comes mainly from Hotel 50%, Occupancy 30%, Food and Beverage 13% (quarter Q2 FY2026).
Institutional ownership scores 6/10, insider activity 5/10 and Congressional trading 5/10 on the GLS smart-money scales.
| Piotroski F-score | 5 / 9 | ROIC | -1.3% |
|---|---|---|---|
| GLS Moat | 0.8 / 10 | ROE | -4.4% |
| Debt / equity | 2.33 | ROA | -1.2% |
| Free-cash-flow yield | 4.5% | Payout ratio | -1336% |
| Institutions | 6 / 10 | Insiders · Congress | 5 · 5 / 10 |
Wheel Score 45: Weak
BHR scores 45 out of 100 on the Wheel Score, in the Weak band (under 50), capped at 45 because the engine files it as Speculative / Distressed. Value 25/25, Health 11/20, Moat 1/15, Premium 5/20, Stability 11/20. The score is not a judgement on the company; it says the price, quality and premium do not line up for selling puts on it today.
Implied volatility is 190%, far above the range the wheel strategy is built for. The premium looks generous; the Wheel Score gives it only 5 of 20 Premium points because moves of that size can blow through any strike. Chain open interest is thin - 1,822 contracts across every expiry - so fills at a fair price are not guaranteed; a 30-45-day put may not exist at a usable strike.
Volume runs at 738k shares a day on a market cap of $95M, with a beta of 0.82; the Stability part of the Wheel Score gives that 11 of 20.
| Part | Points | From | |
|---|---|---|---|
| Value | 25 / 25 | 96% margin of safety | |
| Health | 11 / 20 | Piotroski 5/9 | |
| Moat | 1 / 15 | moat 0.8/10 | |
| Premium | 5 / 20 | implied volatility 190% | |
| Stability | 11 / 20 | 738k shares/day, $95M cap, beta 0.82 |
The Wheel Score ranks ~7,400 US stocks for selling cash-secured puts and covered calls; it is updated nightly and is not a recommendation. The walkthrough lesson shows how the score fits into a trade, start to finish.
Upcoming events
The next earnings report is due on 3 Nov 2026 (after the close), 18 days away; a 30-45-day put sold today would expire after it, which is worth weighing against the premium.
Earnings, dividend, IPO, split and economic calendars for the whole market, filterable to your watchlists.
Similar stocks in REIT - Hotel & Motel
The 12 companies below are the closest to Braemar Hotels & Resorts Inc. by market cap within the REIT - Hotel & Motel industry, each with its own fact sheet; the Compare page puts up to eight of them side by side.
| Stock | Close | Fair value | MoS | Wheel | Mkt cap |
|---|---|---|---|---|---|
| SOHON Sotherly Hotels Inc. | 3.53 | 4,659.62 | +100% | 39No options | $46M |
| SOHOB Sotherly Hotels Inc. | 3.43 | 4,659.61 | +100% | 39No options | $46M |
| CLDT Chatham Lodging Trust | 14.14 | 11.54 | -23% | 52Fair | $658M |
| INN Summit Hotel Properties, Inc. | 6.42 | 35.04 | +82% | 45Weak | $692M |
| IHT InnSuites Hospitality Trust | 1.13 | 0.2943 | -284% | 14No options | $13M |
| AHT Ashford Hospitality Trust, Inc. | 1.86 | 164.73 | +99% | 39No options | $12M |
| SVC Service Properties Trust | 5.85 | 97.79 | +94% | 45Weak | $758M |
| XHR Xenia Hotels & Resorts, Inc. | 18.32 | 29.26 | +37% | 45Weak | $1.7B |
| RLJ RLJ Lodging Trust | 11.38 | 10.77 | -6% | 63Fair | $1.7B |
| SHO Sunstone Hotel Investors, Inc. | 11.51 | 10.57 | -9% | 63Fair | $2.1B |
| PEB Pebblebrook Hotel Trust | 19.11 | 37.02 | +48% | 45Weak | $2.2B |
| DRH DiamondRock Hospitality Company | 13.28 | 9.32 | -43% | 58Fair | $2.7B |
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Start free See the Sunday ScanQuestions about BHR
Is BHR undervalued right now?
By the GLS models, yes: at 1.39 the stock is 96% below the average fair value of 34.92 (data as of 16 Oct 2026). Whether the discount is deserved is the question to research next.
What is the Wheel Score of BHR and what does it mean?
BHR scores 45 out of 100 (Weak). The Wheel Score blends the margin of safety (25 points), Piotroski health (20), the GLS moat (15), the option premium on offer (20) and trading stability (20) into one number that ranks stocks for the wheel strategy - selling cash-secured puts, then covered calls if assigned. 80 and above is Prime, 65-79 Good, 50-64 Fair, under 50 Weak.
What is the GLS fair value for BHR?
34.92 per share as of 16 Oct 2026 - the simple average of the 3 valuation models (out of nine: DCF, Graham Number, Graham Growth, Lynch, GLS Growth, 10 Cap, Payback Time, DDM and EPV) that produced a positive value. The models run every night on the latest filings; the Quote page lets you switch any of them off and add a margin of safety of your own.
When does Braemar Hotels & Resorts Inc. report earnings next?
The next earnings report is due on 3 Nov 2026 (after the close), 18 days from the data date of 16 Oct 2026. The Calendars page lists every upcoming report with its time of day.
Does BHR have listed options, and how liquid are they?
Yes. The nightly snapshot found 30 listed contracts with 1,822 open interest across all expiries and implied volatility of 190% on the near-the-money contracts. The Options scanner lists the cash-secured put and covered call set-ups with premium and annualised yield worked out.