Wyndham Hotels & Resorts (WH) stock has been showing some pressure lately, finishing the past month down nearly 8%. Shares also sit roughly 23% lower than this time last year. This has prompted renewed interest in the company’s long-term potential.

See our latest analysis for Wyndham Hotels & Resorts.

Wyndham Hotels & Resorts has navigated a challenging stretch, with its 1-year total shareholder return down over 23%. This reflects market caution and some short-term momentum fading. Despite the recent slide, long-term total returns paint a steadier growth picture for patient investors.

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With shares trading well below analyst targets and solid long-term growth metrics, is Wyndham simply out of favor? Does the recent slide offer a compelling entry point for value-focused investors, or is future upside already reflected in the price?

Most Popular Narrative: 31.9% Undervalued

With Wyndham Hotels & Resorts closing at $72.08 and the most popular narrative setting fair value much higher, the debate over the company’s upside intensifies. Investors are left to puzzle over whether the current price really captures the full potential that lies ahead.

Wyndham is different because they do not actually own any real property at all. Instead they make all of their revenue from fees and royalties coming from their franchisees. This allows them to have good reserves of cash and be available to reward investors, whether by share repurchases, dividends, or even strategic acquisitions, such as the purchase of La Quinta a couple of years ago.

Read the complete narrative.

Curious what powers this aggressive fair value? The narrative’s bullish case is built on unique business model advantages and robust cash generation. Want to see which financial levers are expected to drive growth and support this ambitious target? Only the full narrative breaks down the most pivotal projections behind this bold valuation.

Result: Fair Value of $105.80 (UNDERVALUED)

Have a read of the narrative in full and understand what’s behind the forecasts.

However, WH’s heavy reliance on franchise growth and its elevated debt levels could quickly become headwinds if travel trends change or financing conditions tighten.

Find out about the key risks to this Wyndham Hotels & Resorts narrative.

Build Your Own Wyndham Hotels & Resorts Narrative

If you have a different take or want to dig into the numbers on your own, you can assemble your own narrative in just a few minutes, your way. Do it your way.

A great starting point for your Wyndham Hotels & Resorts research is our analysis highlighting 5 key rewards and 2 important warning signs that could impact your investment decision.

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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.

Valuation is complex, but we’re here to simplify it.

Discover if Wyndham Hotels & Resorts might be undervalued or overvalued with our detailed analysis, featuring fair value estimates, potential risks, dividends, insider trades, and its financial condition.

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