MAR is now overvalued and could go down -25%

Based on our analysis, Marriott International has received an overvalued rating of 2 out of 5 stars from Cashu. Several key financial ratios illustrate why the company's current valuation may not be justified. The Price-to-Earnings (PE) Ratio for Marriott stands at 29.02, significantly higher than the sector average of 17.12. A higher PE ratio indicates that investors are paying more for each dollar of earnings compared to the industry, suggesting that the stock may be overvalued relative to its earnings potential. Additionally, the Price-to-Book (PB) Ratio is alarmingly high at 82.97, compared to the sector average of 2.04. This ratio indicates how much investors are willing to pay for each dollar of net assets. A ratio this elevated could indicate that investors have high expectations for future growth, which may not be realized. Marriott's Dividend Yield is another area of concern, sitting at 0.99, lower than the sector average of 1.48. This indicates that investors receive less income in dividends relative to their investment compared to peers, which can be a red flag for income-focused investors. The Return on Equity (ROE) Ratio for Marriott is extraordinarily high at 415.14, which may appear positive but could be misleading, particularly in comparison to the sector average of 1.98. Such a high ROE can indicate that the company is using significant leverage, which carries its own risks. In summary, while Marriott International has some strong performance metrics, its elevated ratios in key areas suggest that it may be overvalued compared to its industry counterparts. This is not a comprehensive overview of our valuation, and should not be viewed as financial advice. Always do your own research before considering an investment.