Price Over Earnings Overview: Marriott International - Marriott International (NASDAQ:MAR)

Core Viewpoint - Marriott International Inc. has shown a positive stock performance with a 2.38% increase over the past month and a 14.39% increase over the past year, leading to optimism among long-term shareholders, while concerns about potential overvaluation arise from the price-to-earnings (P/E) ratio analysis [1][3]. Group 1: Stock Performance - The current trading price of Marriott International Inc. is $316.07, reflecting a 0.68% increase in the current session [1]. - Over the past month, the stock has increased by 2.38%, and over the past year, it has risen by 14.39% [1]. Group 2: P/E Ratio Analysis - The P/E ratio is a critical metric for evaluating the company's market performance, comparing the current share price to its earnings per share (EPS) [3]. - Marriott International Inc. has a P/E ratio of 33.12, which is lower than the industry average P/E ratio of 68.84 in the Hotels, Restaurants & Leisure sector [4]. - A lower P/E ratio may suggest that shareholders expect the company to perform worse than its peers or that the stock is undervalued [4]. Group 3: Limitations of P/E Ratio - While a lower P/E can indicate undervaluation, it may also imply that shareholders do not anticipate future growth [6]. - The P/E ratio should not be used in isolation; other factors such as industry trends and business cycles also influence stock prices [6].