Stock fact sheet · data as of
Choice Hotels International, Inc. (CHH): fair value, margin of safety and Wheel Score
Consumer Cyclical · Travel Lodging · United States · Value
Is CHH undervalued?
CHH closed at 106.92 on 16 Oct 2026 against a GLS average fair value of 99.55 - 7.4% above fair value, which our screens read as "fairly priced". 4 of 9 models are above the current price. There is no discount to lean on here, so the margin of safety is not the reason to look at the stock.
There is a wide gap between DDM (16.92) and Graham Growth (246.17). When the models are this far apart the "fair value" is really a range, and the margin of safety above should be read with that range in mind.
The nightly engine files CHH under Value: positive earnings at a P/E of 18 or less.
Nine valuation models for CHH
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 | 123.30 | +15% | Present value of the projected free cash flows, discounted at the cost of capital |
| Graham Number | 22.67 | -79% | The most a defensive investor pays for the earnings and book value per share |
| Graham Growth | 246.17 | +130% | Graham's growth formula: EPS × (8.5 + 2 × growth), adjusted for bond yields |
| Lynch | 95.03 | -11% | EPS × the earnings growth rate (PEG of 1), growth capped at 25% |
| GLS Growth | 65.30 | -39% | EPS compounded ten years at the blended growth rate, discounted back at 15% a year |
| 10 Cap | 131.91 | +23% | Owner's earnings (operating cash flow less maintenance capex) capitalised at 10% |
| Payback Time | 113.97 | +7% | Eight years of compounded free cash flow: the price at which the business pays for itself |
| DDM | 16.92 | -84% | Dividend discount model: next year's dividend ÷ (10% − 3% growth); needs a dividend |
| EPV | 80.66 | -25% | Earnings power value: current EPS capitalised at 9% with no growth |
| Zombie (liquidation) | -51.24 | -148% | Current assets less all liabilities, per share: the balance-sheet floor. Not in the average |
| Wall St target | 112.22 | +5% | Analysts' average 12-month price target. Not in the average |
Quality and financial health
Choice Hotels International, Inc. scores 6 of 9 on the Piotroski F-score: a middling result that passes the Sunday Scan's "6 or more" rule. Some of the nine tests on profitability, leverage and efficiency are failed, so the accounts are worth a look before selling a put on the name. A GLS Moat score of 3.8/10 is a weak reading: the ten-year history the score grades (revenue, EPS, book value, margins, cash flow, share count, ROIC) has not been steady, so the Moat part of the Wheel Score contributes little.
Returns on capital are high - ROIC 16.0%, ROE 204.1%, ROA 12.7% - with debt at 11.76 times equity and a free-cash-flow yield of 4.6%. Debt of 11.76 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 1.08% with a payout ratio of 16% - a small yield that leaves most of the earnings in the business. Revenue comes mainly from Franchising And Management 43%, Revenue For Reimbursable Costs From Fra… 37%, Owned Hotels 8% (quarter Q2 FY2026).
Institutional ownership scores 9/10, insider activity 6/10 and Congressional trading 5/10 on the GLS smart-money scales.
| Piotroski F-score | 6 / 9 | ROIC | 16.0% |
|---|---|---|---|
| GLS Moat | 3.8 / 10 | ROE | 204.1% |
| Debt / equity | 11.76 | ROA | 12.7% |
| Free-cash-flow yield | 4.6% | Payout ratio | 16% |
| Institutions | 9 / 10 | Insiders · Congress | 6 · 5 / 10 |
Wheel Score 63: Fair
A Wheel Score of 63 puts Choice Hotels International, Inc. in the Fair band - below the 70 the Sunday Scan requires. Value 9/25, Health 13/20, Moat 6/15, Premium 20/20 and Stability 15/20; the weakest part is Value (9/25).
Implied volatility is 41% on the near-the-money contracts 20-60 days out - inside the 35-60% range the Wheel Score pays full marks for: enough premium to be worth selling, not so much that the risk is unpaid. Chain open interest is 2,728 contracts across all expiries - enough for the wheel at normal size.
Volume runs at 425k shares a day on a market cap of $4.9B, with a beta of 0.71 - a low beta, so day-to-day moves are smaller than the market's; the Stability part of the Wheel Score gives that 15 of 20.
| Part | Points | From | |
|---|---|---|---|
| Value | 9 / 25 | -7% margin of safety | |
| Health | 13 / 20 | Piotroski 6/9 | |
| Moat | 6 / 15 | moat 3.8/10 | |
| Premium | 20 / 20 | implied volatility 41% | |
| Stability | 15 / 20 | 425k shares/day, $4.9B cap, beta 0.71 |
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 2 Nov 2026 (before the open), 17 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 Travel Lodging
The 12 companies below are the closest to Choice Hotels International, Inc. by market cap within the Travel Lodging 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 |
|---|---|---|---|---|---|
| ATAT Atour Lifestyle Holdings Limited | 33.51 | 130.36 | +74% | 89Prime | $4.6B |
| WH Wyndham Hotels & Resorts, Inc. | 72.59 | 57.09 | -27% | 58Fair | $5.4B |
| HGV Hilton Grand Vacations Inc. | 36.03 | 68.01 | +47% | 78Good | $2.8B |
| HTHT H World Group Limited | 45.94 | 151.00 | +70% | 91Prime | $14.1B |
| H Hyatt Hotels Corporation | 168.91 | 77.72 | -117% | 58Fair | $15.9B |
| IHG InterContinental Hotels Group PLC | 166.15 | 83.87 | -98% | 38No options | $24.3B |
| CVEO Civeo Corporation | 30.79 | 67.85 | +55% | 45Weak | $318M |
| HLT Hilton Worldwide Holdings Inc. | 342.97 | 156.80 | -119% | 59Fair | $77.2B |
| MAR Marriott International, Inc. | 385.71 | 202.06 | -91% | 57Fair | $100.6B |
| GHG GreenTree Hospitality Group Ltd. | 0.9350 | 3.71 | +75% | 39No options | $95M |
| INTG The InterGroup Corporation | 32.54 | 65.57 | +50% | 39No options | $70M |
| SKTP Skytop Lodge Corporation | 1,699.10 | 576.17 | -195% | 10No options | $17M |
Screen the whole market the same way
A free GLS Equity account gets you nightly fair value and the Wheel Score on ~7,400 US stocks, a watchlist, the scanner preview and the Sunday Scan - the same eight-rule screen, emailed every week. Pro adds the full put and call scanners, unlimited watchlists with alerts and the trade journal.
Start free See the Sunday ScanQuestions about CHH
Is CHH undervalued right now?
Not meaningfully: at 106.92 the stock trades within a few percent of the GLS average fair value of 99.55 (7.4% above fair value, data as of 16 Oct 2026).
What is the Wheel Score of CHH and what does it mean?
CHH scores 63 out of 100 (Fair). 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 CHH?
99.55 per share as of 16 Oct 2026 - the simple average of the 9 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 Choice Hotels International, Inc. report earnings next?
The next earnings report is due on 2 Nov 2026 (before the open), 17 days from the data date of 16 Oct 2026. The Calendars page lists every upcoming report with its time of day.
Does CHH have listed options, and how liquid are they?
Yes. The nightly snapshot found 224 listed contracts with 2,728 open interest across all expiries and implied volatility of 41% 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.