Sunstone Hotel Investors, Inc. (SHO) Fair Value 2026

SHO · REIT - Hotel & Motel ·

By CirclFi Research Team · Data from SEC EDGAR, FRED & GDELT

Quality Score

7.8 /10

32 fundamental signals · 11 models active

Value Trap Risk

LOW (26/100)

Quick Summary — As of 2026-08-28, Sunstone Hotel Investors, Inc. (SHO) trades at $11.33, versus a $4.52 median fair value across its 11 active models — 60.1% below the current price. QOC: 7.8/10. Value Trap Risk: 26/100 (LOW). 11/13 models active.

Key Facts

Ticker
SHO
Price
$11.33
Quality Score
7.8/10
Value Trap Risk
26/100
Models Active
11/13
Last Updated
Strength: First Chicago suggests +49.4% upside with 51% confidence
Risk: Majority of models suggest overvaluation

Is Sunstone Hotel Investors, Inc. (SHO) Undervalued or Overvalued in 2026?

According to CirclFi’s 11-model valuation engine, Sunstone Hotel Investors, Inc. (SHO) appears overvalued as of : the median of 11 independent fair value estimates is $4.52, 60.1% below the current price of $11.33. Estimates range from $1.95 to $16.93. SHO scores 7.8/10 on fundamental quality and 26/100 on value-trap risk.

For context, the median US equity CirclFi rates trades at an implied -23.4% versus its own 13-model consensus, across 3,809 rated companies as of 2026-08-28. SHO’s -60.1% gap is wider than that market norm. Full market index →

This verdict compares price to intrinsic value only — it is not a buy or sell rating. For the decision case (bull vs bear arguments, risk factors, peers), read Should You Buy Sunstone Hotel Investors, Inc. Stock in 2026? →

What Fair Value Does Each Model Give SHO?

11 Intrinsic Value Models vs. Current Price ($11.33)

Core Models (Unlocked)
Model Fair Value Upside
Ensemble · Low Conviction
 $5.26 -53.6%
Scenario · High Conviction
 $16.93 +49.4%
Intrinsic · High Conviction
 $3.58 -68.4%
Intrinsic · High Conviction
 $3.68 -67.6%
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What Is SHO's Fair Value Range?

Spread across 11 independent models · $1.95 to $16.93

CirclFi's 11 active models place Sunstone Hotel Investors, Inc. (SHO) between $1.95 and $16.93 per share, a spread of 331% of the median. The median of that range — $4.52 — is the fair value CirclFi publishes for SHO, against a current price of $11.33.

Low · Regime CrossHigh · First Chicago
$1.95median $4.52$16.93
Where the range comes from
Most bearish modelRegime Cross-Sectional$1.95
Most bullish modelFirst Chicago$16.93
Model agreement2 bullish · 8 bearishwide

A band this wide is itself the finding. When independent methods land far apart, they are reading a business whose value depends heavily on which lens you apply — volatile earnings, heavy reinvestment, or an asset base that cash-flow and asset-based methods score differently. That disagreement is information: it says the choice of method matters more than usual for SHO. Treat the median as one reading among several and compare the individual models below before acting.

Every figure above is one model's standalone output on SHO, not a CirclFi price target. How each model works →

What Is Sunstone Hotel Investors, Inc. (SHO) Worth in 2026?

According to the CirclFi Deep Alpha Valuation Engine, Sunstone Hotel Investors, Inc.'s intrinsic value is estimated at a median fair value of $4.52. Trading at $11.33, the stock is approaching fair value or slight overvaluation (implied return of -60.1%), as 8 of 11 models suggest limited further upside. The most optimistic model, First Chicago, places fair value at $16.93 (+49.4%), while Regime Cross — the most conservative — estimates $1.95 (-82.8%). This +132.2% gap reflects genuine analytical uncertainty about Sunstone Hotel Investors, Inc.'s intrinsic worth.

What Do the Models Say About SHO?

11 of 13 models are currently active for SHO. Of these, 2 models suggest upside while 9 models suggest overvaluation. Taken together, their median fair value for SHO is $4.52 — the figure CirclFi publishes as this stock's fair value. See which stocks rank higher →

How Does SHO Rank in REIT - Hotel & Motel?

Among 15 REIT - Hotel & Motel stocks, SHO ranks #6 by Quality of Company score. CirclFi's QOC score of 7.8/10 evaluates 32 fundamental signals. A score of 7.8 indicates above-average quality.

Sunstone Hotel Investors, Inc.'s positioning within the REIT - Hotel & Motel segment means that capitalization rate (cap rate) plays an outsized role in fundamental analysis. The sector's unique characteristics — including portfolio repositioning — shape both the opportunity set and risk profile.

Is SHO a Value Trap?

CirclFi's Value Trap algorithm assigns SHO a score of 26/100 (LOW). This indicates low risk. The financial profile does not exhibit typical value trap warning signs. The score cross-references apparent undervaluation against fundamental deterioration signals. Browse lowest value-trap stocks →

Multi-Model Methodology

11 of 13 models are active for Sunstone Hotel Investors, Inc.. Broad coverage provides high confidence. Each model applies a fundamentally different valuation philosophy. See the complete methodology →

According to the CirclFi Deep Alpha Valuation Engine, Sunstone Hotel Investors, Inc. scores 7.8 out of 10 on our 32-signal quality assessment, a strong rating that demonstrates strong fundamentals across the majority of our quality signals. The QOC score synthesizes profitability margins, revenue growth reliability, debt management, and capital allocation into a single metric designed to separate durable businesses from statistically cheap ones.

The gap between the most bullish and bearish model spans +132.2% — demonstrating why single-model analysis is dangerous. Browse all stocks with 13-model coverage →

Data Sources & Confidence

Every SHO valuation is built from SEC EDGAR XBRL filings — 700+ standardized financial tags. Macroeconomic context from FRED calibrates discount rates, while GDELT news sentiment feeds into our Sentiment SOTP model. All pipelines run daily. Read the complete data methodology →

Across SHO's 11 active models, average confidence is 40%. Lower confidence may reflect limited history or high volatility.

CirclFi's output is a research starting point, not a buy/sell signal. All data updates daily. Read the full methodology →

This analysis is produced by the CirclFi Valuation Engine using quantitative models applied to SEC EDGAR filings, public market feeds, and FRED macroeconomic indicators. It is not financial advice.

Read the full investment analysis: Should You Buy Sunstone Hotel Investors, Inc. Stock in 2026? →

Bull case, bear case, risk factors & peer comparison — updated daily

Which Similar REIT - Hotel & Motel Stocks Should You Also Analyze?

9 related REIT - Hotel & Motel stocks with 13-model coverage

DRHDiamondRock Hospitality CompanyQOC 7.9RLJRLJ Lodging TrustQOC 7.5XHRXenia Hotels & Resorts, Inc.QOC 8.1CLDTChatham Lodging TrustQOC 7.4APLEApple Hospitality REIT, Inc.QOC 8.2PEBPebblebrook Hotel TrustQOC 7.0SVCService Properties TrustQOC 5.7RHPRyman Hospitality Properties, Inc.QOC 8.2HSTHost Hotels & Resorts, Inc.QOC 8.4

Read investment analysis: DRH · RLJ · XHR · CLDT · APLE · PEB · SVC · RHP · HST

Which Other Stocks Have a Similar Quality Score to SHO?

7 companies across all industries closest to SHO’s Quality of Company score of 7.8/10.

RYNRayonier Inc.QOC 7.8TBLATaboola.com Ltd.QOC 7.8CGThe Carlyle Group Inc.QOC 7.8PACSPACS Group, Inc.QOC 7.8SNEXStoneX Group Inc.QOC 7.8JXNJackson Financial Inc.QOC 7.8NVDANVIDIA CorporationQOC 10.0

Read investment analysis: RYN · TBLA · CG · PACS · SNEX · JXN · NVDA

What Else Do Investors Ask About Sunstone Hotel Investors, Inc.’s Valuation?

What is Sunstone Hotel Investors, Inc.'s intrinsic value in 2026?

CirclFi puts Sunstone Hotel Investors, Inc. (SHO)'s intrinsic value at $4.52 — the median of 11 independent model estimates as of 2026-08-28, ranging from $1.95 to $16.93. The Quality of Company score is 7.8/10 across 32 fundamental signals. All models use SEC EDGAR filings updated daily. See our methodology page for how each model works.

Is SHO overvalued or undervalued right now?

At $11.33, 2 of 11 active models suggest SHO may be undervalued, while 9 indicate potential overvaluation. The median of all 11 fair value estimates is $4.52, 60.1% below the current price of $11.33 — a consensus view that SHO is overvalued. The assessment depends on which methodology best fits Sunstone Hotel Investors, Inc.'s business model in REIT - Hotel & Motel.

What does a Quality of Company score of 7.8 mean for SHO?

Sunstone Hotel Investors, Inc.'s QOC of 7.8/10 reflects 32 fundamental signals: profitability margins, revenue growth consistency, balance sheet leverage, free cash flow generation, and capital allocation efficiency. Scores above 7 indicate strong fundamentals and disciplined management.

How many valuation models does CirclFi run on SHO?

CirclFi analyzes SHO with 13 institutional-grade models daily: Bayesian DCF (Monte Carlo + jump-diffusion), EPV (Greenwald zero-growth), EROIC Spread (McKinsey reinvestment), First Chicago (3-scenario), Markov DDM (regime-switching), ML-RIV (machine learning residual income), Dynamic NAV (asset-based), PWERM (option-theoretic), Regime Cross-Sectional (relative), Sentiment SOTP (hybrid), CUCE Ensemble (meta-model), FTNN Topology (neural network), and RCMH-DCF (conditional regime). Currently 11 of 13 are active for this stock. Read the full methodology →

Which valuation models are most bullish and most bearish on SHO?

Of the 11 models currently active on SHO, First Chicago is the most bullish at $16.93 per share, and Regime Cross-Sectional is the most bearish at $1.95. CirclFi's published fair value for SHO is the median of that range, $4.52, not either extreme. The gap between the two ends equals 331% of the median — a wide spread, meaning the methods genuinely disagree and the median should carry less weight. Browse stocks by value-trap risk →

Is SHO a value trap in 2026?

Sunstone Hotel Investors, Inc.'s Value Trap score is 26/100 (LOW). This low score indicates the current valuation is not artificially depressed by fundamental deterioration, suggesting genuine opportunity rather than a trap.

Cite this analysis — “According to CirclFi’s 11-model valuation engine, Sunstone Hotel Investors, Inc. (SHO) has a median fair value of $4.52 — 60.1% below the current price of $11.33 — as of 2026-08-28.” Source: circlfi.com/stock/SHO/ · Methodology
Primary sources for this SHO valuation
  • Financial statements: Sunstone Hotel Investors, Inc. 10-K and 10-Q filings on SEC EDGAR (CIK 0001295810) — 700+ standardized XBRL tags, published by the U.S. Securities and Exchange Commission.
  • Discount-rate inputs: FRED, Federal Reserve Bank of St. Louis — risk-free rates, VIX, yield curve, inflation.
  • News sentiment: The GDELT Project — global media tone, input to the Sentiment SOTP model.
  • Model definitions: CirclFi methodology — the published specification for all 13 models, including the academic sources each one implements.

Market data for SHO as of ; valuations recomputed .

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