Choice Hotels International Inc. (CHH) intrinsic value & 10-year financials
Choice Hotels International Inc. (CHH) has a Graham intrinsic value of $166.98 per share. At $108.41 on Oct 17, 2026, the stock trades 35% below that value. Over the last 10 fiscal years revenue grew 7.9% a year to $1.6B, with an average return on invested capital of 34.2%.
- Graham intrinsic value
- $166.98
- Share price (Oct 17, 2026)
- $108.41
- Price vs Graham value
- 35% below
- Market cap
- $5.0B
- Revenue (FY2025)
- $1.6B
- Revenue growth (10-yr CAGR)
- 7.9%
- ROIC (10-yr avg)
- 34.2%
- Free cash flow (FY2025)
- $231.5M
CHH 10-year financial history
| Fiscal year | Revenue | Net income | EPS (diluted) | Free cash flow | Operating margin | ROIC |
|---|---|---|---|---|---|---|
| FY2025 | $1.6B | $369.9M | $7.90 | $231.5M | 28.1% | 18.4% |
| FY2024 | $1.6B | $299.7M | $6.20 | $280.3M | 29.3% | 20.2% |
| FY2023 | $1.5B | $258.5M | $5.07 | $180.3M | 24.3% | 18.7% |
| FY2022 | $1.4B | $332.2M | $5.99 | $277.1M | 34.1% | 32.5% |
| FY2021 | $1.1B | $289.0M | $5.15 | $309.4M | 40.1% | 39.5% |
| FY2020 | $774.1M | $75.4M | $1.35 | $76.5M | 15.8% | 15.2% |
| FY2019 | $1.1B | $222.9M | $3.98 | $213.2M | 28.6% | 39.6% |
| FY2018 | $1.0B | $216.4M | — | $195.2M | 30.6% | 61.4% |
| FY2017 | $941.3M | $114.9M | — | $233.9M | 28.1% | 45.0% |
| FY2016 | $807.9M | $139.4M | $2.46 | $126.8M | 29.6% | 51.1% |
Source: annual 10-K filings on SEC EDGAR. Figures in USD.
Executive summary
CHOICE HOTELS INTERNATIONAL INC /DE has demonstrated mature, steady growth, with revenue compounding at 7.9% annually over the past decade.
CHOICE HOTELS INTERNATIONAL INC /DE has earned high returns on invested capital, averaging 34.2% ROIC over the available history. High ROIC is consistent with a durable franchise, but it is not by itself proof of an economic moat.
Over the decade, CHOICE HOTELS INTERNATIONAL INC /DE shows that management has aggressively returned capital to shareholders by retiring 17.1% of outstanding shares, and that the company has leveraged its balance sheet to sustain operations.
Benjamin Graham lens
Under Benjamin Graham's formula using SEC EDGAR fundamentals, CHOICE HOTELS INTERNATIONAL INC /DE is modeled at 8.0% normalized earnings growth with a 5.1% bond-yield adjustment. The resulting Graham intrinsic value estimate is $166.98 per share.