Marriott International, based in Bethesda, Maryland, operates numerous hotel and residential properties and employs 148,000 people. Its brands span various categories, including Classic Luxury, Distinctive Luxury, and Midscale offerings.
Based on our analysis, Marriott International has received an overvalued rating of 2 out of 5 stars due to several key financial ratios that indicate potential concerns for investors.
The Price-to-Earnings (PE) ratio for Marriott stands at 29.81, significantly higher than the sector average of 15.61. A high PE ratio suggests that investors are paying a premium for each dollar of earnings, which can indicate overvaluation, especially if growth expectations do not materialize.
Additionally, the Price-to-Book (PB) ratio is exceptionally high at 82.97 compared to the sector average of 1.97. This ratio measures the market's valuation of the company's equity relative to its book value. A high PB ratio may indicate that the market expects substantial future growth, but it could also suggest that the stock is overvalued relative to its tangible assets.
Furthermore, Marriott's Dividend Yield is 0.96, which is below the sector average of 2.56. This means investors receive a lower return in the form of dividends compared to other companies in the sector, potentially signaling that the stock may not be an attractive income investment.
Considering these ratios, the elevated valuations in comparison to sector averages raise red flags for potential investors.
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.
📡️ Consumer Discretionary
Overvalued
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