The Discounted Cash Flow (DCF) valuation of Sotherly Hotels Inc (SOHO) is 4.27 USD. With the latest stock price at 0.75 USD, the upside of Sotherly Hotels Inc based on DCF is 472.4%.

Is SOHO a buy or a sell?

Based on the latest price of 0.75 USD and our DCF valuation, Sotherly Hotels Inc (SOHO) is a buy. Buying SOHO stocks now will result in a potential gain of 472.4%.

	Range	Selected
WACC / Discount Rate	5.6% - 13.9%	9.7%
Long-term Growth Rate	2.5% - 4.5%	3.5%
Fair Price	(1.30) - 63.07	4.27
Upside	-274.2% - 8356.1%	472.4%

0.75 USD

Stock Price

4.27 USD

Fair Price

REVENUE & EXPENSES

CAPEX

D&A

WORKING CAPITAL

TERMINAL VALUE

SOHO DCF Valuation: Revenue & Expenses Forecast

(USD in millions)		Projections

	12-2024	12-2025	12-2026	12-2027	12-2028	12-2029

Revenue	182	207	230	249	270	294
% Growth	5%	14%	11%	9%	8%	9%

Cost of goods sold	(62)	(69)	(75)	(80)	(85)	(91)
% of Revenue	34%	34%	33%	32%	32%	31%

Selling, G&A expenses	(80)	(91)	(101)	(109)	(118)	(129)
% of Revenue	44%	44%	44%	44%	44%	44%

Research & Development	0	0	0	0	0	0
% of Revenue	0%	0%	0%	0%	0%	0%

Net interest & other expenses	(39)	(44)	(49)	(53)	(57)	(62)
% of Revenue	21%	21%	21%	21%	21%	21%

Tax expense	(0)	(0)	(0)	(1)	(1)	(1)
Tax rate	10%	9%	9%	9%	9%	9%

Net profit	1	3	4	6	8	11
% Margin	1%	1%	2%	2%	3%	4%