$10.56
+2.6%DiamondRock Hospitality Company is a self-advised real estate investment trust (REIT) that is an owner of a leading portfolio of geographically diversified hotels concentrated in top gateway markets and destination resort locations. The Company owns 31 premium quality hotels with over 10,000 rooms. The Company has strategically positioned its hotels to be operated both under leading global brand families as well as unique boutique hotels in the lifestyle segment.
Warren Buffett's Owner Earnings DCF analysis for intrinsic value calculation
Base year metrics used for projections
Forecast period and terminal assumptions
Calculation flow from present value to intrinsic value per share
Operating Cash Flow - Maintenance CapEx = Owner Earnings
| Metric | Year 1 | Year 2 | Year 3 | Year 4 | Year 5 | Year 6 | Year 7 | Year 8 | Year 9 | Year 10 |
|---|---|---|---|---|---|---|---|---|---|---|
| Operating Cash Flow | $276.5M | $313.8M | $356.2M | $404.2M | $458.7M | $520.6M | $590.8M | $670.5M | $761.0M | $863.6M |
| Maintenance CapEx | -$18.5M | -$21.0M | -$23.8M | -$27.1M | -$30.7M | -$34.9M | -$39.6M | -$44.9M | -$50.9M | -$57.8M |
| Owner Earnings | $258.0M | $292.8M | $332.3M | $377.1M | $428.0M | $485.7M | $551.3M | $625.6M | $710.0M | $805.8M |
| Discount Factor | 0.926 | 0.857 | 0.794 | 0.735 | 0.681 | 0.630 | 0.583 | 0.540 | 0.500 | 0.463 |
| Present Value | $238.9M | $251.0M | $263.8M | $277.2M | $291.3M | $306.1M | $321.7M | $338.0M | $355.2M | $373.2M |
Snapshot
Start with context, operating signals, and key market metrics.
Value Model
Stress test fair value across bear, base, and bull assumptions.
Statements
Validate revenue quality, margins, and balance sheet durability.
Earnings Call
Read management commentary and compare it with reported outcomes.
Dividends
Check payout sustainability and long-term distribution behavior.
Analyst Expectations
Review consensus spread and where estimate risk is concentrated.