Price (delayed)
$7.29
Market cap
$357.1M
P/E Ratio
121.5
Dividend/share
$0.3
EPS
$0.06
Enterprise value
$733.47M
Chatham Lodging Trust is a self-advised, publicly traded real estate investment trust focused primarily on investing in upscale, extended-stay hotels and premium-branded, select-service hotels. The company owns interests in 85 ...
You can ether set your own Fair P/E multiple or use one of the automatically calculated Fair P/E multiples.
PE Ratio is an attempt to estimate a fair PE ratio of a stock based on its earnings and growth rate.
This formula is a modified version of the classic Graham-Dodd Formula (V= EPS x (8.5+2g)), originally developed by Benjamin Graham, to calculate the fair price of a stock based on its earnings and growth rate.
The formula we have created is an adaptation of this approach, designed to maintain a balance between simplicity and growth sensitivity.
It is calculated using the following formula:
IF g < 0: Fair PE = b
IF g <= 5%: Fair PE = (m × g) + b
IF g > 5%: Fair PE = (m × g)
Here’s what each part of the formula means:
g: This represents the company's average EPS (Earnings Per Share) growth rate over the past three years. When a 3-year average is not available, 1 year average is used instead. Growth is a key driver of a stock's value, and our formula directly connects growth to the Fair PE ratio.
m: This is the long term historical median PEG (Price/Earnings to Growth) ratio of the overall market. It serves as a benchmark, adjusting the Fair PE based on typical market conditions.
b: Base PE (static value set to 8). If the company's growth rate is negative, the Fair PE is set at a conservative baseline of 8. This is because declining companies generally deserve a lower PE ratio.
Fixed: The Fair PE ratio for all data points is calculated using a single, constant 3-year average EPS growth rate, determined based on the most recent period. This means that the same growth rate is applied to all historical data points. Dynamic: The Fair PE ratio for each historical data point is calculated using the trailing 3-year average EPS growth rate specific to that point in time. This means that for each data point, the corresponding 3-year trailing EPS growth rate is used, ensuring that the Fair PE ratio reflects the growth conditions that were relevant at that specific point in history.
Special dividends are included in TTM DPS and yield
All financial data is based on trailing twelve months (TTM) periods - updated quarterly, unless otherwise specified.