Apple Hospitality REIT, Inc.
AI Valuation
AI-generated fair value estimate for this company.
AI Fair Value
$24.50
Market Price
$16.55
Undervalued By
32.5%
Method: 5-year-plus-terminal DCF on levered FCF/share: $1.64/share base (TTM operating cash flow $386.1M divided by 236.08M shares, proxy for AFFO); 3% growth yrs 1-5; 9.5% discount rate; 2.5% terminal growth; $1.613B total debt vs $10.2M cash already reflected in levered post-interest cash flow.
Reasoning: Apple Hospitality is a diversified upscale select-service hotel REIT (216 hotels, mostly Hilton/Marriott branded, $1.44B TTM revenue); low-single-digit RevPAR/FFO growth reflects mature US lodging demand and typical stabilized REIT economics.