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DCF Valuation
Base-case fair value
$7.78
Intrinsic $10.37 · 25% MOS
Current price: $6.41
Base-case summary
Our base-case DCF for Summit Hotel Properties, Inc. (INN) projects 10 years of free cash flow growth at 11.7% for years 1–5 and 5.9% for years 6–10, anchored to 11.7% historical FCF growth, then applies a 2.5% perpetual growth rate and a 8.0% discount rate. Starting from $80M in trailing free cash flow, this produces an intrinsic value of $10.37 per share. A 25% safety margin gives a fair value of $7.78, suggesting the stock is currently 21% undervalued against the $6.41 market price.
See 3 scenarios side by side
Conservative, Base, and Optimistic fair values, plus the sensitivity matrix and FCF history. Free account.
Model inputs
TTM Free Cash Flow
$80M
Cash & equivalents
$45M
Total debt
$1.4B
Shares outstanding
106M