$11.47
+2.5%Sunstone Hotel Investors, Inc. is a lodging real estate investment trust (REIT) that as of the date of this release has interests in 19 hotels comprised of 9,997 rooms. Sunstone's business is to acquire, own, asset manage and renovate or reposition hotels considered to be Long-Term Relevant Real Estateยฎ, the majority of which are operated under nationally recognized brands, such as Marriott, Hilton and Hyatt.
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 | $90.9M | $45.4M | $22.7M | $11.4M | $5.7M | $2.8M | $1.4M | $710.0K | $355.0K | $177.5K |
| Maintenance CapEx | -$10.3M | -$5.2M | -$2.6M | -$1.3M | -$644.0K | -$322.0K | -$161.0K | -$80.5K | -$40.3K | -$20.1K |
| Owner Earnings | $80.6M | $40.3M | $20.1M | $10.1M | $5.0M | $2.5M | $1.3M | $629.5K | $314.7K | $157.4K |
| Discount Factor | 0.926 | 0.857 | 0.794 | 0.735 | 0.681 | 0.630 | 0.583 | 0.540 | 0.500 | 0.463 |
| Present Value | $74.6M | $34.5M | $16.0M | $7.4M | $3.4M | $1.6M | $734.6K | $340.1K | $157.5K | $72.9K |
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.