DiamondRock Hospitality Co. (DRH) intrinsic value & 10-year financials

DiamondRock Hospitality Co. (DRH) has a Graham intrinsic value of $1.07 per share. At $13.42 on Oct 17, 2026, the stock trades 1154% above that value. Over the last 10 fiscal years revenue grew 2.5% a year to $1.1B, with an average return on invested capital of 1.2%.

Graham intrinsic value
$1.07
Share price (Oct 17, 2026)
$13.42
Price vs Graham value
1154% above
Market cap
$2.8B
Revenue (FY2025)
$1.1B
Revenue growth (10-yr CAGR)
2.5%
ROIC (10-yr avg)
1.2%
Free cash flow (FY2025)
—

DRH 10-year financial history

Fiscal year Revenue Net income EPS (diluted) Free cash flow Operating margin ROIC
FY2025 $1.1B $101.4M $0.44 — — 4.0%
FY2024 $1.1B $48.0M $0.18 — — 1.8%
FY2023 $1.1B $86.3M $0.36 — — 3.2%
FY2022 $1.0B $109.3M $0.47 — — 4.2%
FY2021 $567.1M -$194.6M -$0.96 — — -7.5%
FY2020 $299.5M -$394.4M -$1.97 — — -14.3%
FY2019 $938.1M $183.5M $0.90 — — 6.4%
FY2018 $863.7M $87.8M $0.43 — — 3.2%
FY2017 $870.0M $91.9M $0.46 — 16.1% 4.9%
FY2016 $896.6M $114.8M $0.57 — 17.6% 5.7%

Source: annual 10-K filings on SEC EDGAR. Figures in USD.

Executive summary

DiamondRock Hospitality Co has demonstrated mature, steady growth, with revenue compounding at 2.5% annually over the past decade.

DiamondRock Hospitality Co has historically struggled to out-earn its cost of capital, averaging just 1.2% ROIC.

Over the decade, DiamondRock Hospitality Co shows that the company has leveraged its balance sheet to sustain operations.

Benjamin Graham lens

Under Benjamin Graham's formula using SEC EDGAR fundamentals, DiamondRock Hospitality Co is modeled at -2.8% normalized earnings growth with a 5.1% bond-yield adjustment. The resulting Graham intrinsic value estimate is $1.07 per share.

DRH stock: frequently asked questions

What is the intrinsic value of DiamondRock Hospitality Co. (DRH) stock?

Using Benjamin Graham's revised formula, V = EPS × (8.5 + 2g) × 4.4 / Y, with reported diluted earnings per share, a -2.8% normalized growth rate (capped at 15%) and a 5.1% AAA corporate bond yield, DRH's intrinsic value is about $1.07 per share.

Is DRH stock undervalued?

At $13.42 (close on Oct 17, 2026), DRH trades 1154% above its Graham value of $1.07. On Graham's terms the shares look fully priced. A formula is a starting point for research, not a recommendation.

How fast has DiamondRock Hospitality Co. grown?

Revenue went from $896.6M in fiscal 2016 to $1.1B in fiscal 2025, a compound annual growth rate of 2.5%. Net income was $101.4M in fiscal 2025.

What is DRH's return on invested capital?

Average ROIC over the last 10 fiscal years was 1.2%, and average return on equity was 1.4%. Sustained ROIC above about 15% usually points to a durable competitive advantage.

Where does this DRH data come from?

From DiamondRock Hospitality Co.'s annual 10-K filings on SEC EDGAR, most recently filed Jul 30, 2026. Prices are end-of-day snapshots; valuations are formula outputs, not investment advice.

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