Before looking at detailed valuation models, it helps to frame a simple question: is Park Hotels & Resorts fairly priced at its recent US$11.34 share price, or is the market mispricing it?

Recent returns have been mixed, with the stock showing a 4.3% return over the last 7 days, 8.6% over 30 days, 5.3% year to date, a 30.4% return over 1 year, 30.7% over 3 years, and a 23.5% decline over 5 years.

These moves sit against a backdrop of ongoing interest in large hotel and resort REITs. Investors often focus on how property values, occupancy trends, and financing conditions feed through to listed vehicles like Park Hotels & Resorts. That broader context helps explain why valuation has become a focal point for the stock, as investors weigh current pricing against the company’s asset base and income profile.

On Simply Wall St’s 6 point valuation framework, Park Hotels & Resorts currently scores 5 out of 6, which suggests the stock screens as undervalued on most checks. This article will look at how different valuation approaches arrive at that view, while also highlighting an even more holistic way to think about value at the end.

Approach 1: Park Hotels & Resorts Discounted Cash Flow (DCF) Analysis

A Discounted Cash Flow model looks at the cash Park Hotels & Resorts is expected to generate in the future, then discounts those adjusted funds from operations back to what they might be worth today.

On this approach, the company’s latest twelve month free cash flow stands at about US$394 million. Analyst inputs extend out to 2027 with projected free cash flow of US$376.7 million. Beyond that point, Simply Wall St extrapolates further, with ten year projections that run through to 2035, all kept in the hundreds of millions of US dollars each year.

Bringing these projected cash flows back to today using the 2 Stage Free Cash Flow to Equity model produces an estimated intrinsic value of about US$23.50 per share. When compared with the recent share price of US$11.34, the model points to an implied discount of roughly 51.8%, which indicates the stock screens as materially undervalued on this measure.

Result: UNDERVALUED

Our Discounted Cash Flow (DCF) analysis suggests Park Hotels & Resorts is undervalued by 51.8%. Track this in your watchlist or portfolio, or discover 60 more high quality undervalued stocks.

Approach 2: Park Hotels & Resorts Price vs Sales

For companies where revenue is a useful indicator of business scale and investor attention, the P/S ratio is a practical way to compare what the market is willing to pay for each dollar of sales.

In general, higher growth expectations and lower perceived risk can support a higher P/S multiple, while slower growth or higher uncertainty tend to align with a lower, more conservative range that investors may see as “normal” for a given stock.

Park Hotels & Resorts currently trades on a P/S ratio of 0.90x. This sits below both the Hotel and Resort REITs industry average P/S of 4.18x and the peer group average of 1.73x. Simply Wall St also calculates a proprietary Fair Ratio of 1.90x for Park Hotels & Resorts, which reflects factors such as earnings growth, industry, profit margin, market cap and company specific risks.

The Fair Ratio offers a more tailored yardstick than a simple comparison with peers or the broad industry, because it is adjusted for the company’s own fundamentals and risk profile rather than relying on blunt averages.

Compared with this 1.90x Fair Ratio, the current 0.90x P/S suggests Park Hotels & Resorts trades at a lower multiple than the model implies.

Result: UNDERVALUED

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Upgrade Your Decision Making: Choose your Park Hotels & Resorts Narrative

Earlier it was mentioned that there is an even better way to understand valuation. Narratives bring your view of Park Hotels & Resorts together in one place by tying a clear story about the business to specific forecasts for revenue, earnings and margins, which then flow through to a Fair Value that you can compare with the current share price.

On Simply Wall St's Community page, Narratives are set up so you can pick or create a story that matches how you see Park Hotels & Resorts, whether that is closer to a bullish Fair Value of about US$17.62 or a more cautious view at US$10.00. The platform then keeps that Narrative updated when new earnings, news or guidance are added, so your Fair Value view moves with the facts rather than staying frozen in time.

This gives you a practical way to decide whether Park Hotels & Resorts looks attractive or stretched on your numbers, because you are always comparing your Fair Value from the Narrative with the live market price instead of relying only on static ratios or one off analyst targets.

For Park Hotels & Resorts, we will make it really easy for you with previews of two leading Park Hotels & Resorts Narratives:

Fair Value: US$17.62

Implied discount to this Fair Value: about 35.6% based on the recent US$11.34 share price

Revenue growth assumption: 2.34% a year

• Focuses on asset sales, capital recycling, and a more concentrated portfolio as key supports for earnings, revenue, and asset value.
• Sees upside from key property projects, digital tools, and exposure to travel demand as drivers of higher margins and long term earnings power.
• Flags risks around labor costs, older urban hotels, and competition from alternative accommodation that could weigh on margins and growth if not managed well.

Fair Value: US$10.00

Implied premium to this Fair Value: about 13.4% based on the recent US$11.34 share price

Revenue growth assumption: 1.20% a year

• Highlights pressure from remote work, changing traveler preferences, and alternative accommodation on occupancy, pricing power, and revenue growth.
• Points to ongoing cost headwinds from older, unionized properties, required renovations, and climate related expenses that can limit free cash flow.
• Allows for portfolio upgrades and renovation benefits, but assumes these are not enough to offset structural industry and cost challenges at the current share price.

If you want to see which version of the story lines up best with your own expectations for Park Hotels & Resorts, you can review the full community Narratives and their underlying assumptions in one place using the See what the community is saying about Park Hotels & Resorts.

Do you think there's more to the story for Park Hotels & Resorts? Head over to our Community to see what others are saying!

This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.