Drive Shack Inc (DSHK)

[pineyhill]

https://finance.yahoo.com/news/investors-priced-drive-shack-inc-210641400.html


Have Investors Priced In Drive Shack Inc’s (NYSE:DS) Growth?


Drive Shack appears to be overvalued according to my relative valuation model. In this instance, I’ve used price-to-book ratio (PB) ratio given that there is not enough information to reliably forecast the stock’s cash flows, and its earnings doesn’t seem to reflect its true value. I find that Drive Shack’s ratio of 4.51x is above its peer average of 2.42x, which suggests the stock is overvalued compared to the Hospitality industry. If you like the stock, you may want to keep an eye out for a potential price decline in the future. Since Drive Shack’s share price is quite volatile, this could mean it can sink lower (or rise even further) in the future, giving us another chance to invest. This is based on its high beta, which is a good indicator for how much the stock moves relative to the rest of the market.