Sunstone Hotel Investors, Inc.

NYSE:SHO Stock Report

Market Cap: US$1.7b

Sunstone Hotel Investors Valuation

Is SHO undervalued compared to its fair value, analyst forecasts and its price relative to the market?

Valuation Score

2/6

Valuation Score 2/6

  • Below Fair Value

  • Significantly Below Fair Value

  • Price-To-Sales vs Peers

  • Price-To-Sales vs Industry

  • Price-To-Sales vs Fair Ratio

  • Analyst Forecast

Share Price vs Fair Value

What is the Fair Price of SHO when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

US$6.51
Fair Value
41.3% overvalued intrinsic discount
11
Number of Analysts

Below Fair Value: SHO ($9.2) is trading above our estimate of fair value ($6.51)

Significantly Below Fair Value: SHO is trading above our estimate of fair value.

Key Valuation Metric

Which metric is best to use when looking at relative valuation for SHO?

Key metric: As SHO is barely profitable we use its Price-To-Sales Ratio for relative valuation analysis.

The above table shows the Price to Sales ratio for SHO. This is calculated by dividing SHO's market cap by their current revenue.
What is SHO's PS Ratio?
PS Ratio1.9x
SalesUS$935.00m
Market CapUS$1.75b

Price to Sales Ratio vs Peers

How does SHO's PS Ratio compare to its peers?

The above table shows the PS ratio for SHO vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyForward PSEstimated GrowthMarket Cap
Peer Average1.1x
DRH DiamondRock Hospitality
1.4x1.95%US$1.6b
PK Park Hotels & Resorts
0.8x2.84%US$2.2b
XHR Xenia Hotels & Resorts
1.2x2.47%US$1.3b
PEB Pebblebrook Hotel Trust
0.8x2.43%US$1.2b
SHO Sunstone Hotel Investors
1.9x3.99%US$1.7b

Price-To-Sales vs Peers: SHO is expensive based on its Price-To-Sales Ratio (1.9x) compared to the peer average (1.1x).

Price to Sales Ratio vs Industry

How does SHO's PS Ratio compare vs other companies in the North American Hotel and Resort REITs Industry?

4 CompaniesPrice / SalesEstimated GrowthMarket Cap
SHO 1.9xIndustry Avg. 4.0xNo. of Companies4PS00.61.21.82.43+
4 CompaniesEstimated GrowthMarket Cap
No more companies

Price-To-Sales vs Industry: SHO is good value based on its Price-To-Sales Ratio (1.9x) compared to the Global Hotel and Resort REITs industry average (4x).

Price to Sales Ratio vs Fair Ratio

What is SHO's PS Ratio compared to its Fair PS Ratio? This is the expected PS Ratio taking into account the company's forecast earnings growth, profit margins and other risk factors.

SHO PS Ratio vs Fair Ratio.
Fair Ratio
Current PS Ratio1.9x
Fair PS Ratio2.4x

Price-To-Sales vs Fair Ratio: SHO is good value based on its Price-To-Sales Ratio (1.9x) compared to the estimated Fair Price-To-Sales Ratio (2.4x).

Analyst Price Targets

What is the analyst 12-month forecast and do we have any statistical confidence in the consensus price target?

The above table shows the analyst SHO forecast and predictions for the stock price in 12 month’s time.
DateShare PriceAverage 1Y Price TargetDispersionHighLow1Y Actual priceAnalysts
CurrentUS$9.20
US$9.64
+4.74%
8.31%US$11.00US$8.00n/a11
Oct ’26US$9.34
US$9.64
+3.17%
8.31%US$11.00US$8.00n/a11
Sep ’26US$9.48
US$9.73
+2.61%
9.13%US$11.00US$8.00n/a11
Aug ’26US$8.64
US$9.73
+12.58%
9.13%US$11.00US$8.00n/a11
Jul ’26US$8.84
US$9.64
+9.01%
8.31%US$11.00US$8.00n/a11
Jun ’26US$8.96
US$9.85
+9.93%
5.58%US$11.00US$9.00n/a10
May ’26US$8.47
US$9.91
+16.99%
13.91%US$12.00US$7.00n/a11
Apr ’26US$9.49
US$11.27
+18.79%
8.53%US$12.00US$9.00n/a11
Mar ’26US$10.48
US$11.46
+9.34%
8.25%US$13.00US$10.00n/a12
Feb ’26US$11.33
US$11.54
+1.87%
8.92%US$13.00US$10.00n/a12
Jan ’26US$11.84
US$11.54
-2.52%
8.92%US$13.00US$10.00n/a12
Dec ’25US$10.75
US$11.13
+3.49%
7.81%US$12.00US$10.00n/a12
Nov ’25US$10.13
US$11.04
+9.00%
7.50%US$12.00US$10.00n/a12
Oct ’25US$10.23
US$11.00
+7.53%
7.65%US$12.00US$10.00US$9.3412
Sep ’25US$10.43
US$11.00
+5.47%
7.65%US$12.00US$10.00US$9.4812
Aug ’25US$10.12
US$11.33
+11.99%
5.79%US$12.00US$10.00US$8.6412
Jul ’25US$10.15
US$11.17
+10.02%
6.42%US$12.00US$10.00US$8.8412
Jun ’25US$10.28
US$11.27
+9.66%
5.79%US$12.00US$10.00US$8.9611
May ’25US$10.23
US$10.80
+5.57%
6.93%US$12.00US$10.00US$8.475
Apr ’25US$11.03
US$10.92
-1.03%
7.67%US$13.00US$10.00US$9.4912
Mar ’25US$11.30
US$10.41
-7.88%
5.35%US$11.50US$10.00US$10.4811
Feb ’25US$10.83
US$10.13
-6.51%
9.04%US$12.00US$9.00US$11.3312
Jan ’25US$10.73
US$10.04
-6.42%
9.63%US$12.00US$9.00US$11.8412
Dec ’24US$10.04
US$9.88
-1.64%
8.80%US$11.50US$9.00US$10.7512
Nov ’24US$9.18
US$9.79
+6.66%
10.10%US$11.50US$8.00US$10.1312
Oct ’24US$9.35
US$9.79
+4.72%
10.10%US$11.50US$8.00US$10.2312
US$9.64
Fair Value
4.5% undervalued intrinsic discount
11
Number of Analysts

Analyst Forecast: Target price is less than 20% higher than the current share price.

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Company Analysis and Financial Data Status

DataLast Updated (UTC time)
Company Analysis2025/10/20 17:38
End of Day Share Price 2025/10/17 00:00
Earnings2025/06/30
Annual Earnings2024/12/31

Data Sources

The data used in our company analysis is from S&P Global Market Intelligence LLC. The following data is used in our analysis model to generate this report. Data is normalised which can introduce a delay from the source being available.

PackageDataTimeframeExample US Source *
Company Financials10 years
  • Income statement
  • Cash flow statement
  • Balance sheet
Analyst Consensus Estimates+3 years
  • Forecast financials
  • Analyst price targets
Market Prices30 years
  • Stock prices
  • Dividends, Splits and Actions
Ownership10 years
  • Top shareholders
  • Insider trading
Management10 years
  • Leadership team
  • Board of directors
Key Developments10 years
  • Company announcements

* Example for US securities, for non-US equivalent regulatory forms and sources are used.

Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more.

Analysis Model and Snowflake

Details of the analysis model used to generate this report is available on our Github page, we also have guides on how to use our reports and tutorials on Youtube.

Learn about the world class team who designed and built the Simply Wall St analysis model.

Industry and Sector Metrics

Our industry and section metrics are calculated every 6 hours by Simply Wall St, details of our process are available on Github.

Analyst Sources

Sunstone Hotel Investors, Inc. is covered by 27 analysts. 8 of those analysts submitted the estimates of revenue or earnings used as inputs to our report. Analysts submissions are updated throughout the day.

AnalystInstitution
Michael BellisarioBaird
Felicia Kantor HendrixBarclays
Dany AsadBofA Global Research