MAR
Marriott International Inc
Price:  
260.69 
USD
Volume:  
1,271,720
United States | Hotels, Restaurants & Leisure

Marriott Fair Value

-13.8 %
Upside

What is the fair value of Marriott?

As of 2025-05-23, the Fair Value of Marriott International Inc (MAR) is 224.79 USD. This value is based on the Peter Lynch's Fair Value formula. With the current market price of 260.69 USD, the upside of Marriott International Inc is -13.8%.

Is Marriott a good investment?

With the market price of 260.69 USD and our fair value calculation, Marriott International Inc (MAR) is not a good investment. Investing in Marriott stocks now will result in a potential loss of 13.8%.

260.69 USD
Stock Price
224.79 USD
Fair Price
FAIR VALUE CALCULATION

Marriott Fair Value

Peter Lynch's formula is:

Marriott Fair Value
= Earnings Growth Rate x TTM EPS
Marriott Fair Value
= 25 x 8.99
Marriott Fair Value
= 224.79

The earnings growth rate we use in the formula is the average growth rate of net income/earnings over the last 5 years. If the average growth rate is smaller than 5%, we set it to 5%. If it is larger than 25%, we set it to 25%. If the TTM EPS is negative, Peter Lynch Fair Value's result can be unreliable.

Historical Earnings
12-202012-202112-202212-202312-20245Y Avg
Net income-2671,0992,3583,0832,3751,730
YoY growth-121%511.6%114.6%30.7%-23%102.6%

Marriott Fair Value - Peers Benchmarking

Market Cap (mil)EPS Fair Value Upside
a
Chipotle Mexican Grill Inc68,4191.228.97-42.9%
Hilton Worldwide Holdings Inc58,6266.6165.12-33.1%
Restaurant Brands International Inc36,2512.316.25-83.1%
Hyatt Hotels Corp12,1718.3208.0163.1%
MGM Resorts International8,8702.415.01-52.1%
Hilton Grand Vacations Inc3,6530.41.8-95.3%
Extended Stay America Inc3,6360.31.4-93.2%
Travel + Leisure Co3,1816.3127.26165.7%
Marriott Vacations Worldwide Corp2,3366.6165.65145.1%
Playa Hotels & Resorts NV1,7180.52.45-81.8%

Marriott Fair Value - Key Data

Market Cap (mil)71,786
P/E29x
Forward P/E25.5x
EPS8.99
Avg earnings growth rate102.6%
TTM earnings2,476

Marriott Fair Value - Formula's Origin

Peter Lynch is one of the most legendary investors/fund managers of all time. His philosophy for stock investing is very simple and straightforward: he invests in stocks that are undervalued, meaning its P/E is less than or equal to its earnings growth rate. He believes that if a stock is trading at its fair value, the PEG ratio, which was also invented by him, should be 1.

Therefore, his formula to determine a company's fair value is:

Peter Lynch Fair Value = Earnings Growth Rate * EPS * PEG

PEG is set to 1 so we can ignore it in the calculation. Based on the formula, if the earnings growth rate of a company is 15%, Peter Lynch is willing to buy its share up to P/E = 15.