Sunstone Hotel Investors Inc (SHO) Stock Analysis — PE Ratio, PS Ratio, Intrinsic Value & 2030 Price Target
Sunstone Hotel Investors Inc stock (SHO) is currently trading at $9.26. Sunstone Hotel Investors Inc PE ratio is 231.50. Sunstone Hotel Investors Inc PS ratio (Price-to-Sales) is 1.83. Analyst consensus price target for SHO is $10.09. WallStSmart rates SHO as Sell.
- SHO PE ratio analysis and historical PE chart
- SHO PS ratio (Price-to-Sales) history and trend
- SHO intrinsic value — DCF, Graham Number, EPV models
- SHO stock price prediction 2025 2026 2027 2028 2029 2030
- SHO fair value vs current price
- SHO insider transactions and insider buying
- Is SHO undervalued or overvalued?
- Sunstone Hotel Investors Inc financial analysis — revenue, earnings, cash flow
- SHO Piotroski F-Score and Altman Z-Score
- SHO analyst price target and Smart Rating
Sunstone Hotel Investors Inc
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SHO Intrinsic Value Analysis for Value Investors
Benjamin Graham Formula · Sunstone Hotel Investors Inc (SHO)
SHO trades 3337% above its Graham fair value of $0.27, indicating the stock may be overvalued at current levels.
Based on Benjamin Graham Formula. Growth rate capped at 25%. For informational purposes only. Not financial advice.
Smart Analysis
Sunstone Hotel Investors Inc (SHO) · 10 metrics scored
Smart Score
Category Performance
WallStSmart pulls financial metrics like revenue growth, profit margins, and valuation ratios and scores each one from 0 to 10 based on how strong or weak it is. Those 10 scores are grouped into 4 categories: Growth, Profitability, Valuation, and Quality — which form the 4 axes of the spider chart you see. The categories are then combined into a final score out of 100, but not equally. Growth and Profitability together count for 60% of the total, because a fast-growing profitable business matters more than just a cheap one. That final number maps to a rating (Strong Buy, Buy, Hold, Avoid) and a letter grade, giving you one clear Stock Rating.
Investment Thesis
Strong fundamentals in price/sales, price/book, institutional own.. Concerns around peg ratio and return on equity. Mixed signals suggest waiting for clearer direction before acting.
Sunstone Hotel Investors Inc (SHO) Key Strengths (3)
98.10% of shares held by major funds and institutions
Paying $1.83 for every $1 of annual revenue
Trading at 1.01x book value, attractively priced
Supporting Valuation Data
Sunstone Hotel Investors Inc (SHO) Areas to Watch (7)
Earnings declining -72.70%, profits shrinking
Very low returns on shareholder equity
Very expensive relative to growth, significant premium
Very thin margins with limited operational efficiency
Very thin margins, barely profitable
Small-cap company with higher risk but more growth potential
Solid revenue growth at 10.30% per year
Supporting Valuation Data
Sunstone Hotel Investors Inc (SHO) Detailed Analysis Report
Overall Assessment
This company scores 44/100 in our Smart Analysis, earning a D grade. Out of 10 metrics analyzed, 3 register as strengths (avg 8.7/10) while 7 fall into concern territory (avg 2.6/10). The category breakdown reveals uneven performance, with some areas requiring attention.
The Bull Case
The strongest argument centers on Institutional Own., Price/Sales, Price/Book. Valuation metrics including Price/Sales (1.83), Price/Book (1.01) suggest the stock is attractively priced.
The Bear Case
The primary concerns are EPS Growth, Return on Equity, PEG Ratio. Some valuation metrics including PEG Ratio (3.00) suggest expensive pricing. Growth concerns include Revenue Growth at 10.30%, EPS Growth at -72.70%, which may limit upside. Profitability pressure is visible in Return on Equity at 1.21%, Operating Margin at 7.14%, Profit Margin at 2.56%.
Key Dynamics to Monitor
Three factors to monitor going forward. First, whether EPS Growth improves, as this is the primary drag on the overall score. Second, margin trajectory, with Return on Equity at 1.21% needing improvement to support the investment thesis. Third, growth sustainability, with Revenue Growth at 10.30% needing to reaccelerate.
Risk Considerations
Based on the metric profile, this is a higher risk investment. There are more areas of concern than strength, warranting a more conservative position size. Investors should size positions according to their risk tolerance and maintain diversification.
Bottom Line
Fundamental challenges outweigh strengths at current levels. EPS Growth and Return on Equity are the primary drags. Consider waiting for meaningful improvement before committing capital.
Disclaimer: Smart Analysis is a scoring system developed by WallStSmart Team. Scores update daily using multi-model valuation framework. Always conduct your own research and consult with financial advisors before making investment decisions.
SHO Price-to-Sales(PS) Ratio Chart
Historical valuation based on market cap ÷ trailing 12-month revenue
SHO's Price-to-Sales ratio of 1.83x trades 44% below its historical average of 3.26x (14th percentile). The current valuation is 80% below its historical high of 9.36x set in Feb 2021, and 325% above its historical low of 0.43x in Feb 2009.
WallStSmart Analysis Synopsis
Data-driven financial summary for Sunstone Hotel Investors Inc (SHO) · REAL ESTATE › REIT - HOTEL & MOTEL
The Big Picture
Sunstone Hotel Investors Inc operates as a stable business with moderate growth and solid fundamentals. Revenue reached 960M with 10% growth year-over-year. Profit margins are thin at 2.6%, typical for companies in this phase that are reinvesting heavily in growth.
Key Findings
Generating 7M in free cash flow and 37M in operating cash flow. Earnings are translating into actual cash generation.
ROE of 1.2% suggests the company isn't efficiently converting equity into profits.
Earnings fell 73% YoY while revenue grew 10%. This gap usually reflects one-time items (tax benefits, write-offs) in the prior period, not an operational decline.
What to Watch Next
Margin expansion: can Sunstone Hotel Investors Inc push profit margins above 15% as the business scales?
Valuation compression risk at a P/E of 231.5x. Any growth miss could trigger a sharp correction.
Dividend sustainability with a current yield of 4.0%. Watch payout ratio and free cash flow coverage.
Debt management: total debt of 926M is significantly higher than cash (121M). Monitor refinancing risk.
Bottom Line
Sunstone Hotel Investors Inc offers stability with moderate growth and solid fundamentals. The valuation may present an opportunity for patient investors, though limited growth means returns will likely come from dividends and modest capital appreciation rather than explosive gains.
This synopsis is generated from publicly available financial data. It is not financial advice. Always conduct your own research and consult a qualified financial advisor before making investment decisions.
Insider Transactions
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About Sunstone Hotel Investors Inc(SHO)
NYSE
REAL ESTATE
REIT - HOTEL & MOTEL
USA
Sunstone Hotel Investors, Inc. is a lodging real estate investment trust (REIT) that, as of the date of this release, has interests in 19 hotels with 9,997 rooms.