HOST HOTELS & RESORTS, INC.

Where It Passes

Where It Falls Short

• Efficiency0% pass✓ 1✗ 10▾

  No clean pass — all 8 investors flag at least one efficiency criterion

  Current Ratio

  ✗Graham>= 2.0

  ROIC (3-5 yr avg)7.1%

  ✗Buffett> 10%

  ROIC - WACC-2.9%

  ✗BuffettPositive (WACC = 10%)

  EBIT / (NWC + Net Fixed Assets)

  ✗Greenblatt> 25%

  Current Ratio Change YoY

  ✗PiotroskiIncreased YoY

  Revenue / Total Assets Change YoY0.44x -> 0.47x

  ✓PiotroskiImproved YoY

  Current Assets / Current Liabilities

  ✗Dreman> 1.5

  Return on Invested Capital6.4%

  ✗Munger> 15%

  ROIC (high and growing)FY2023: ROIC=8.9%; FY2024: ROIC=9.2%; FY2025: ROIC=8.6%

  ✗AkreLatest 3 consecutive FYs: ROIC > 15% in each

  Reinvestment Rate x ROIC0.0% (RR=0% x ROIC=6.4%)

  ✗AkreReinvestment Rate * ROIC > 10%

  ROIC (5-year)0/5 years above 12% (latest 8.6%)

  ✗SleepROIC > 12% in a majority of years
• Valuation models0% pass✗ 8▾

  HST overvalued: all 8 models price fair value below $25.50 (median $12.50)

  Graham fair value$15.36

  ✗Graham-66.0% margin vs $25.50

  Lynch fair value$8.49

  ✗Lynch-200.2% margin vs $25.50

  Greenblatt fair value$9.79

  ✗Greenblatt-160.5% margin vs $25.50

  Dreman fair value$15.65

  ✗Dreman-62.9% margin vs $25.50

  Pabrai fair value$13.09

  ✗Pabrai-94.8% margin vs $25.50

  Akre fair value$20.36

  ✗Akre-25.2% margin vs $25.50

  Marks fair value$11.19

  ✗Marks-127.9% margin vs $25.50

  Templeton fair value$11.91

  ✗Templeton-114.1% margin vs $25.50
• Profitability25% pass✓ 15✗ 20▾

  12 of 16 flag HST's profitability — Graham, Buffett, Lynch +9 more

  Net income / market capitalization+5.28%; #1592/6340 (top 25.1%)

  ✓AsnessTop 30% of eligible cross-section✗OshaughnessyTop 10% of eligible cross-section

  Positive EPS (10 years)16/28 years positive

  ✗GrahamPositive EPS every year for 10 years

  EPS Growth (3-yr avg, 10-yr window)

  ✗Graham>= 33% growth

  Net Income Positive (10+ years)23/28 years positive

  ✗BuffettPositive every year for 10+ years

  ROE (up to 5-year arithmetic mean)8.5%

  ✗Buffett> 15% arithmetic mean (app rule)

  Operating Margin (10-yr trend)14.0% (latest)

  ✗BuffettStable or rising over 10 years

  Free Cash Flow Proxy$1.8B

  ✓BuffettPositive and growing

  Earnings Variance (10-yr CoV)

  ✗BuffettCoV < 0.3

  Retained Earnings Effectiveness

  ✗Buffett$1 retained -> > $1 market value created

  Basic earnings-growth PEG (dividends excluded)3.00

  ✗Lynch< 1.0 (ideally < 0.5)

  3-5 Year EPS CAGR7.7%

  ✓Lynch15-30% (Fast Grower); > 0% to pass

  ROE14.8%

  ✗Lynch> 15%

  EBIT / Enterprise Value4.7%

  ✗Greenblatt> 10%

  Earnings Yield + ROC AssessmentEY=4.7%, ROC=None

  ✗GreenblattBoth EY > 10% and ROC > 25%

  Net Income / Total Assets5.86%

  ✓PiotroskiROA > 0

  ROA Change YoY5.34% -> 5.86% (delta: +0.52%)

  ✓PiotroskiCurrent ROA > Prior ROA

  (CFO / Total Assets) vs ROACFO/Assets=11.57%, ROA=5.86%

  ✓PiotroskiCFO/Assets > ROA

  Gross Margin Change YoY

  ✗PiotroskiImproved YoY

  Pre-Tax Income / Revenue16.0%

  ✓Dreman>= 8%

  Net Income / Shareholders' Equity14.8%

  ✓Dreman> 12%

  Margin of SafetyP/FFO=11.2x

  ✓PabraiP/FFO < 15

  Return on Equity11.1% (3-yr avg)

  ✗AkreROE > 20% (3-year avg)

  Discount to Intrinsic Value-62.9% (IV=$15.65 vs Price=$25.50)

  ✗Marks>= 20% below intrinsic value

  Positive Net Income Frequency23/27 years positive

  ✓MarksPositive net income in >= 7 of last 10 years

  Operating Income / Revenue14.8%

  ✗Ackman>= 15%

  Net Income / Shareholders Equity14.8%

  ✗Ackman>= 15%

  5-Year EPS CAGR7.7% CAGR over 3 years

  ✓Templeton> 0% (5-year EPS CAGR)

  Operating Margin Trend15.6% (2023) -> 14.0% (2025)

  ✗TempletonNon-negative operating-margin trend over 3 years

  Revenue growth vs. gross and operating margin trendrevenue up, operating margin 15.6% -> 14.0%

  ✗SleepRevenue rising; gross margin flat or falling; operating margin holding

  Gross profit / total assets

  ✗AsnessTop 30% of eligible cross-section

  Net income / positive book equity+14.76%; #1183/5226 (top 22.6%)

  ✓AsnessTop 30% of eligible cross-section

  Negative 5-year standard deviation of ROA-0.0230; #1601/5884 (top 27.2%)

  ✓AsnessTop 30% of eligible cross-section

  3-5 Year Diluted EPS CAGR7.7% over 3 years

  ✓Neff7%-20% annualized

  Positive Diluted-EPS Years8/10 years positive

  ✓Schloss>= 70% positive over 5-10 observed years (app rule)
• Debt & Leverage25% pass✓ 4✗ 11▾

  9 of 12 flag HST's debt & leverage — Graham, Buffett, Lynch +6 more

  Total Debt / Shareholders' Equity0.80

  ✗Dreman< 0.8✓Templeton< 1.0 (fixed cap; proxy for below-sector-median leverage)✓SchlossD/E < 1.00x

  LT Debt vs Net Current Assets

  ✗GrahamLT Debt <= Net Current Assets

  Debt/Equity & Interest CoverageD/E: 0.80, IC: 3.9x

  ✗BuffettD/E < 0.5 AND Interest Coverage > 5x

  Total Debt / Equity0.80

  ✗Lynch< 0.33

  Cash - Long-term Debt$-506.0M

  ✗LynchPositive preferred

  LT Debt / Total Assets Change6.87% -> 9.76%

  ✗PiotroskiDecreased YoY

  Current Assets / Current Liabilities

  ✗Dreman> 1.5✗SchlossCurrent ratio >= 1.50x (app cutoff)

  Debt Levels0.80

  ✗MungerDebt/Equity < 0.5✗AkreDebt/Equity < 0.3

  Interest Coverage & Debt/EBITDAIC=3.9x, D/EBITDA=3.0x

  ✓MarksInterest Coverage > 3x; Debt/EBITDA < 4x

  Total Debt / Shareholders Equity0.80

  ✓Ackman<= 1.0

  Negative debt-to-equity (higher means less debt)-0.8018; #2999/4210 (top 71.2%)

  ✗AsnessTop 30% of eligible cross-section
• Valuation31% pass✓ 7✗ 18▾

  9 of 13 flag HST's valuation — Lynch, Greenblatt, Dreman +6 more

  Net income / market capitalization+5.28%; #1592/6340 (top 25.1%)

  ✓AsnessTop 30% of eligible cross-section✗OshaughnessyTop 10% of eligible cross-section

  Price / FFO per Share11.2x

  ✓Graham<= 15x✓Dreman< 12x✓Ackman<= 25

  Basic earnings-growth PEG (dividends excluded)3.00

  ✗Lynch< 1.0 (ideally < 0.5)

  EBIT / Enterprise Value4.7%

  ✗Greenblatt> 10%

  Earnings Yield + ROC AssessmentEY=4.7%, ROC=None

  ✗GreenblattBoth EY > 10% and ROC > 25%

  Price / (CFO / Shares)11.6x

  ✗Dreman< 8x

  Valuation ReasonablenessP/E=23.2x, OE Yield=8.9%

  ✓MungerP/E < 25 or Owner Earnings Yield > 5%

  P/FFO or FFO YieldP/FFO=11.2x, FFO Yield=8.8%

  ✓PabraiP/FFO < 15 or FFO Yield > 10%

  P/B or P/E vs. Historical AverageP/E=23.2x, P/B=2.7x

  ✗MarksP/E < 15 or P/B < 2.0

  Discount to Intrinsic Value-62.9% (IV=$15.65 vs Price=$25.50)

  ✗Marks>= 20% below intrinsic value

  Price / EPS23.2x

  ✗Templeton< 12x (fixed ceiling; proxy for the market's cheapest 40%)

  Price vs. Trailing Low181% of trailing low ($14.12)

  ✗Templeton<= 120% of trailing low (certified split-adjusted live window)

  Price / Book Value per Share2.7x

  ✗Templeton< 1.5x✗SchlossP/B <= 0.80x (app cutoff)

  Positive book equity / market capitalization+0.3580; #3438/6449 (top 53.3%)

  ✗AsnessTop 30% of eligible cross-section

  Price / Diluted EPS23.2x

  ✗NeffP/E <= 15x (app proxy for a P/E 40%-60% below the market)

  (EPS CAGR % + Dividend Yield %) / P/E0.49

  ✗Neff> 0.7 (Neff's published traditional edge)

  Price / Tangible Book Value per Share2.67x

  ✗SchlossP/TBV <= 1.00x (app cutoff)

  Book Value per Share Change+6.4%

  ✓SchlossLatest BVPS >= earliest BVPS over >= 3 years (app rule)

  Revenue / market capitalization+0.3520; #3102/5247 (top 59.1%)

  ✗OshaughnessyTop 10% of eligible cross-section

  (Operating cash flow - capex) / market capitalization

  ✗OshaughnessyTop 10% of eligible cross-section

  Trailing six-month price return through the evaluation date+26.61%; #1117/6202 (top 18.0%)

  ✗OshaughnessyTop 10% of eligible cross-section
• Verdicts40% pass✓ 4✗ 6▾

  Split decision: 6 FAIL · 6 NEUTRAL · 4 PASS

  Overall verdict

  ✗GrahamFAIL (2/7)✗BuffettFAIL (1/9)✗LynchFAIL (3/7)•GreenblattNot ranked•PiotroskiNEUTRAL (F-Score 6)✓DremanPASS (5/10)✓MungerPASS (2/4)•PabraiNEUTRAL (2/3)✗AkreFAIL (0/6)✗MarksFAIL (3/5)•AckmanNEUTRAL (7/9)✓TempletonPASS (4/8)✓SleepPASS (3/6)•AsnessNEUTRAL (Not ranked)✗NeffFAIL (3/6)•SchlossNEUTRAL (4/7)•OshaughnessyNEUTRAL (Not ranked)
• Cash Flow50% pass✓ 4✗ 3▾

  3 of 6 pass — Dreman, Neff and Oshaughnessy object

  Free Cash Flow Proxy$1.8B

  ✓BuffettPositive and growing

  Operating Cash Flow$1.5B

  ✓PiotroskiCFO > 0

  (CFO / Total Assets) vs ROACFO/Assets=11.57%, ROA=5.86%

  ✓PiotroskiCFO/Assets > ROA

  Price / (CFO / Shares)11.6x

  ✗Dreman< 8x

  Positive Operating Cash Flow frequency22/23 years positive

  ✓SleepPositive OCF in >= 70% of available years

  Operating Cash Flow - Capital Expenditures

  ✗Neff> $0 (app proxy for a strong fundamental case)

  (Operating cash flow - capex) / market capitalization

  ✗OshaughnessyTop 10% of eligible cross-section
• Growth50% pass✓ 8✗ 5▾

  4 of 8 pass — Graham, Lynch, Dreman +1 more object

  EPS Growth (3-yr avg, 10-yr window)

  ✗Graham>= 33% growth

  Basic earnings-growth PEG (dividends excluded)3.00

  ✗Lynch< 1.0 (ideally < 0.5)

  3-5 Year EPS CAGR7.7%

  ✓Lynch15-30% (Fast Grower); > 0% to pass

  Inventory Growth vs Revenue GrowthN/A (no inventory)

  ✓LynchInventory growth < Revenue growth

  EPS Growth Direction

  ✗DremanPositive over recent years

  EPS CAGR

  ✗Dreman> 5% annualized

  Positive Net Income Frequency23/27 years positive

  ✓MarksPositive net income in >= 7 of last 10 years

  3yr Median Revenue Growth7.6%

  ✓Ackman>= 5%

  Positive EPS Growth Frequency4/5 years with positive EPS growth

  ✓AckmanPositive EPS growth in >= 3 of last 5 years

  5-Year EPS CAGR7.7% CAGR over 3 years

  ✓Templeton> 0% (5-year EPS CAGR)

  Revenue growth vs. gross and operating margin trendrevenue up, operating margin 15.6% -> 14.0%

  ✗SleepRevenue rising; gross margin flat or falling; operating margin holding

  5-year Revenue CAGR30.4%

  ✓SleepCAGR > 7%

  3-5 Year Diluted EPS CAGR7.7% over 3 years

  ✓Neff7%-20% annualized