Ashford Hospitality Trust is focused on investing opportunistically in the hospitality industry in upper upscale, full-service hotels. The company was founded in 1968 and is based in Dallas, Texas.
AHT Price Forecast Based on DCF Valuation
DCF Fair Value Target:
The table below illustrates the output of a discounted cash flow forecast using a variety of scenarios for Ashford Hospitality Trust Inc. To summarize, we found that Ashford Hospitality Trust Inc ranked in the 85th percentile in terms of potential gain offered. Specifically, our DCF analysis implies the stock is trading below its fair value by an estimated 810.83%. As for the metrics that stood out in our discounted cash flow analysis of Ashford Hospitality Trust Inc, consider:
2% of the company's capital comes from equity, which is greater than only 0.76% of stocks in our cash flow based forecasting set.
Ashford Hospitality Trust Inc's interest coverage rate -- a measure of gross earnings relative to interest payments -- comes in at 0.38. This coverage rate is greater than that of merely 23.56% of stocks we're observing for the purpose of forecasting via discounted cash flows.
Relative to other stocks in its sector (Real Estate), Ashford Hospitality Trust Inc has a reliance on debt greater than 98.52% of them.
Terminal Growth Rate in Free Cash Flow
Return Relative to Current Share Price
CHCT, SBRA, UE, CORR, and FREVS can be thought of as valuation peers to AHT, in the sense that they are in the Real Estate sector and have a similar price forecast based on DCF valuation.
About two months ago, I wrote an article on Ashford Hospitality Trust (AHT) arguing that the risk of the company facing bankruptcy is very high - see here: Ashford Hospitality: Headed For Bankruptcy. The key building block of the thesis was the oftentimes deadly combination of high leverage and negative...
Real Estate Weekly Outlook Reopening Revival? U.S. equity markets added to their reopening rally this week, ending May with gains of roughly 4% following a robust rally in April, which was the best month for stock indexes since 1987. Driving the gains over the last two months has been early...
Good day everyone and welcome to today's conference call to review the results for Ashford Hospitality Trust for the first quarter 2020 and to update you on recent developments. On the call today will be Rob Hays, President and Chief Executive Officer; Deric Eubanks, Chief Financial Officer; and Jeremy Welter, Chief Operating Officer.