INTERCONTINENTAL HOTELS-ADR (IHG) Fundamental Analysis & Valuation

NYSE:IHG • US45857P8068

133.94 USD
+1.34 (+1.01%)
Last: Mar 10, 2026, 01:32 PM
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This IHG fundamental analysis includes valuation metrics, fair value assessment, financial health analysis, profitability trends, growth metrics and dividend sustainability analysis.

Fundamental Rating

5

Overall IHG gets a fundamental rating of 5 out of 10. We evaluated IHG against 126 industry peers in the Hotels, Restaurants & Leisure industry. While IHG has a great profitability rating, there are some minor concerns on its financial health. IHG is quite expensive at the moment. It does show a decent growth rate.


Dividend Valuation Growth Profitability Health

8

1. IHG Profitability Analysis

1.1 Basic Checks

  • IHG had positive earnings in the past year.
  • IHG had a positive operating cash flow in the past year.
  • In the past 5 years IHG has always been profitable.
  • In the past 5 years IHG always reported a positive cash flow from operatings.
IHG Yearly Net Income VS EBIT VS OCF VS FCFIHG Yearly Net Income VS EBIT VS OCF VS FCFYearly Net Income VS EBIT VS OCF VS FCF 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 0 500M 1B

1.2 Ratios

  • IHG's Return On Assets of 14.18% is amongst the best of the industry. IHG outperforms 90.48% of its industry peers.
  • The Return On Invested Capital of IHG (26.31%) is better than 96.03% of its industry peers.
  • IHG had an Average Return On Invested Capital over the past 3 years of 26.54%. This is significantly above the industry average of 10.49%.
Industry RankSector Rank
ROA 14.18%
ROE N/A
ROIC 26.31%
ROA(3y)14.33%
ROA(5y)11.51%
ROE(3y)N/A
ROE(5y)N/A
ROIC(3y)26.54%
ROIC(5y)22.11%
IHG Yearly ROA, ROE, ROICIHG Yearly ROA, ROE, ROICYearly ROA, ROE, ROIC 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 0 20 -20 -40

1.3 Margins

  • IHG's Profit Margin of 14.61% is amongst the best of the industry. IHG outperforms 86.51% of its industry peers.
  • In the last couple of years the Profit Margin of IHG has grown nicely.
  • IHG's Operating Margin of 23.41% is amongst the best of the industry. IHG outperforms 86.51% of its industry peers.
  • In the last couple of years the Operating Margin of IHG has grown nicely.
  • Looking at the Gross Margin, with a value of 31.26%, IHG is doing worse than 75.40% of the companies in the same industry.
  • In the last couple of years the Gross Margin of IHG has grown nicely.
Industry RankSector Rank
OM 23.41%
PM (TTM) 14.61%
GM 31.26%
OM growth 3Y8.19%
OM growth 5Y38.45%
PM growth 3Y14.88%
PM growth 5YN/A
GM growth 3Y3.73%
GM growth 5Y8.31%
IHG Yearly Profit, Operating, Gross MarginsIHG Yearly Profit, Operating, Gross MarginsYearly Profit, Operating, Gross Margins 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 0 10 -10 20 30

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4

2. IHG Health Analysis

2.1 Basic Checks

  • The Return on Invested Capital (ROIC) is well above the Cost of Capital (WACC), so IHG is creating value.
  • IHG has less shares outstanding than it did 1 year ago.
  • IHG has less shares outstanding than it did 5 years ago.
  • IHG has a worse debt/assets ratio than last year.
IHG Yearly Shares OutstandingIHG Yearly Shares OutstandingYearly Shares Outstanding 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 50M 100M 150M
IHG Yearly Total Debt VS Total AssetsIHG Yearly Total Debt VS Total AssetsYearly Total Debt VS Total Assets 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 1B 2B 3B 4B 5B

2.2 Solvency

  • An Altman-Z score of 2.36 indicates that IHG is not a great score, but indicates only limited risk for bankruptcy at the moment.
  • IHG has a better Altman-Z score (2.36) than 65.08% of its industry peers.
  • IHG has a debt to FCF ratio of 6.57. This is a slightly negative value and a sign of low solvency as IHG would need 6.57 years to pay back of all of its debts.
  • IHG's Debt to FCF ratio of 6.57 is fine compared to the rest of the industry. IHG outperforms 69.84% of its industry peers.
Industry RankSector Rank
Debt/Equity N/A
Debt/FCF 6.57
Altman-Z 2.36
ROIC/WACC3.17
WACC8.31%
IHG Yearly LT Debt VS Equity VS FCFIHG Yearly LT Debt VS Equity VS FCFYearly LT Debt VS Equity VS FCF 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 0 2B -2B 4B

2.3 Liquidity

  • IHG has a Current Ratio of 0.98. This is a bad value and indicates that IHG is not financially healthy enough and could expect problems in meeting its short term obligations.
  • IHG has a Current ratio (0.98) which is in line with its industry peers.
  • A Quick Ratio of 0.97 indicates that IHG may have some problems paying its short term obligations.
  • IHG's Quick ratio of 0.97 is in line compared to the rest of the industry. IHG outperforms 54.76% of its industry peers.
Industry RankSector Rank
Current Ratio 0.98
Quick Ratio 0.97
IHG Yearly Current Assets VS Current LiabilitesIHG Yearly Current Assets VS Current LiabilitesYearly Current Assets VS Current Liabilites 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 500M 1B 1.5B 2B

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WACCDebt/EquityHow to determine the health of a companyAltman-Z scoreShow peers with great health

5

3. IHG Growth Analysis

3.1 Past

  • IHG shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 16.04%, which is quite good.
  • IHG shows a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 74.14% yearly.
  • The Revenue has been growing slightly by 5.40% in the past year.
  • Measured over the past years, IHG shows a quite strong growth in Revenue. The Revenue has been growing by 16.73% on average per year.
EPS 1Y (TTM)16.04%
EPS 3Y21.43%
EPS 5Y74.14%
EPS Q2Q%13.51%
Revenue 1Y (TTM)5.4%
Revenue growth 3Y10.06%
Revenue growth 5Y16.73%
Sales Q2Q%121.76%

3.2 Future

  • Based on estimates for the next years, IHG will show a quite strong growth in Earnings Per Share. The EPS will grow by 12.57% on average per year.
  • Based on estimates for the next years, IHG will show a decrease in Revenue. The Revenue will decrease by -8.39% on average per year.
EPS Next Y16.44%
EPS Next 2Y14.56%
EPS Next 3Y14.64%
EPS Next 5Y12.57%
Revenue Next Year5.55%
Revenue Next 2Y5.52%
Revenue Next 3Y5.74%
Revenue Next 5Y-8.39%

3.3 Evolution

  • The estimated forward EPS growth is still strong, although it is decreasing when compared to the stronger growth in the past years.
  • When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is decreasing.
IHG Yearly Revenue VS EstimatesIHG Yearly Revenue VS EstimatesYearly Revenue VS Estimates 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 2B 4B 6B
IHG Yearly EPS VS EstimatesIHG Yearly EPS VS EstimatesYearly EPS VS Estimates 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 2 4 6 8

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3

4. IHG Valuation Analysis

4.1 Price/Earnings Ratio

  • A Price/Earnings ratio of 26.16 indicates a quite expensive valuation of IHG.
  • IHG's Price/Earnings ratio is in line with the industry average.
  • The average S&P500 Price/Earnings ratio is at 26.45. IHG is around the same levels.
  • The Price/Forward Earnings ratio is 22.45, which indicates a rather expensive current valuation of IHG.
  • Compared to the rest of the industry, the Price/Forward Earnings ratio of IHG is on the same level as its industry peers.
  • Compared to an average S&P500 Price/Forward Earnings ratio of 24.65, IHG is valued at the same level.
Industry RankSector Rank
PE 26.16
Fwd PE 22.45
IHG Price Earnings VS Forward Price EarningsIHG Price Earnings VS Forward Price Earnings ChartPrice Earnings - Forward Price Earnings PE FPE 10 20 30 40

4.2 Price Multiples

  • Based on the Enterprise Value to EBITDA ratio, IHG is valued a bit more expensive than the industry average as 68.25% of the companies are valued more cheaply.
  • The rest of the industry has a similar Price/Free Cash Flow ratio as IHG.
Industry RankSector Rank
P/FCF 28.75
EV/EBITDA 18.27
IHG Per share dataIHG EPS, Sales, OCF, FCF, BookValue per sharePer Share Data Per Share 0 20 -20

4.3 Compensation for Growth

  • IHG's PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.
  • The excellent profitability rating of IHG may justify a higher PE ratio.
  • A more expensive valuation may be justified as IHG's earnings are expected to grow with 14.64% in the coming years.
PEG (NY)1.59
PEG (5Y)0.35
EPS Next 2Y14.56%
EPS Next 3Y14.64%

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Price/EarningsPrice/FCFFCF per shareEV/EBITDAPEG RATIOShow best valued peers

4

5. IHG Dividend Analysis

5.1 Amount

  • IHG has a Yearly Dividend Yield of 1.40%.
  • IHG's Dividend Yield is a higher than the industry average which is at 1.10.
  • Compared to the average S&P500 Dividend Yield of 1.82, IHG is paying slightly less dividend.
Industry RankSector Rank
Dividend Yield 1.4%

5.2 History

  • IHG has been paying a dividend for at least 10 years, so it has a reliable track record.
  • IHG has decreased its dividend in the last 3 years.
Dividend Growth(5Y)N/A
Div Incr Years2
Div Non Decr Years2
IHG Yearly Dividends per shareIHG Yearly Dividends per shareYearly Dividends per share 2016 2017 2018 2019 2020 2022 2023 2024 2025 1 2 3

5.3 Sustainability

  • 35.62% of the earnings are spent on dividend by IHG. This is a low number and sustainable payout ratio.
DP35.62%
EPS Next 2Y14.56%
EPS Next 3Y14.64%
IHG Yearly Income VS Free CF VS DividendIHG Yearly Income VS Free CF VS DividendYearly Income VS Free CF VS Dividend 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 0 500M 1B 1.5B
IHG Dividend Payout.IHG Dividend Payout, showing the Payout Ratio.IHG Dividend Payout.PayoutRetained Earnings

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IHG Fundamentals: All Metrics, Ratios and Statistics

INTERCONTINENTAL HOTELS-ADR

NYSE:IHG (3/10/2026, 1:32:58 PM)

133.94

+1.34 (+1.01%)

Chartmill FA Rating
GICS IndustryGroupConsumer Services
GICS IndustryHotels, Restaurants & Leisure
Earnings (Last)02-17
Earnings (Next)05-07
Inst Owners67.87%
Inst Owner Change4.4%
Ins Owners0.43%
Ins Owner ChangeN/A
Market Cap20.16B
Revenue(TTM)5.19B
Net Income(TTM)758.00M
Analysts69.29
Price Target9366 (6892.68%)
Short Float %0.45%
Short Ratio2.43
Dividend
Industry RankSector Rank
Dividend Yield 1.4%
Yearly Dividend1.74
Dividend Growth(5Y)N/A
DP35.62%
Div Incr Years2
Div Non Decr Years2
Ex-DateN/A
Surprises & Revisions
EPS beat(2)N/A
Avg EPS beat(2)N/A
Min EPS beat(2)N/A
Max EPS beat(2)N/A
EPS beat(4)N/A
Avg EPS beat(4)N/A
Min EPS beat(4)N/A
Max EPS beat(4)N/A
EPS beat(8)N/A
Avg EPS beat(8)N/A
EPS beat(12)N/A
Avg EPS beat(12)N/A
EPS beat(16)N/A
Avg EPS beat(16)N/A
Revenue beat(2)N/A
Avg Revenue beat(2)N/A
Min Revenue beat(2)N/A
Max Revenue beat(2)N/A
Revenue beat(4)N/A
Avg Revenue beat(4)N/A
Min Revenue beat(4)N/A
Max Revenue beat(4)N/A
Revenue beat(8)N/A
Avg Revenue beat(8)N/A
Revenue beat(12)N/A
Avg Revenue beat(12)N/A
Revenue beat(16)N/A
Avg Revenue beat(16)N/A
PT rev (1m)-5.07%
PT rev (3m)7457.52%
EPS NQ rev (1m)N/A
EPS NQ rev (3m)N/A
EPS NY rev (1m)-2.29%
EPS NY rev (3m)-2.21%
Revenue NQ rev (1m)N/A
Revenue NQ rev (3m)N/A
Revenue NY rev (1m)111.76%
Revenue NY rev (3m)111.76%
Valuation
Industry RankSector Rank
PE 26.16
Fwd PE 22.45
P/S 3.88
P/FCF 28.75
P/OCF 22.45
P/B N/A
P/tB N/A
EV/EBITDA 18.27
EPS(TTM)5.12
EY3.82%
EPS(NY)5.97
Fwd EY4.45%
FCF(TTM)4.66
FCFY3.48%
OCF(TTM)5.97
OCFY4.46%
SpS34.48
BVpS-18.21
TBVpS-25.89
PEG (NY)1.59
PEG (5Y)0.35
Graham NumberN/A
Profitability
Industry RankSector Rank
ROA 14.18%
ROE N/A
ROCE 37.44%
ROIC 26.31%
ROICexc 40.39%
ROICexgc 88.93%
OM 23.41%
PM (TTM) 14.61%
GM 31.26%
FCFM 13.51%
ROA(3y)14.33%
ROA(5y)11.51%
ROE(3y)N/A
ROE(5y)N/A
ROIC(3y)26.54%
ROIC(5y)22.11%
ROICexc(3y)45.06%
ROICexc(5y)37.45%
ROICexgc(3y)161.98%
ROICexgc(5y)130.49%
ROCE(3y)38.03%
ROCE(5y)31.68%
ROICexgc growth 3Y-1.02%
ROICexgc growth 5Y65.19%
ROICexc growth 3Y10.61%
ROICexc growth 5Y65.26%
OM growth 3Y8.19%
OM growth 5Y38.45%
PM growth 3Y14.88%
PM growth 5YN/A
GM growth 3Y3.73%
GM growth 5Y8.31%
F-Score7
Asset Turnover0.97
Health
Industry RankSector Rank
Debt/Equity N/A
Debt/FCF 6.57
Debt/EBITDA 3.2
Cap/Depr 294.03%
Cap/Sales 3.8%
Interest Coverage 6.01
Cash Conversion 70.05%
Profit Quality 92.48%
Current Ratio 0.98
Quick Ratio 0.97
Altman-Z 2.36
F-Score7
WACC8.31%
ROIC/WACC3.17
Cap/Depr(3y)178.81%
Cap/Depr(5y)147.01%
Cap/Sales(3y)2.38%
Cap/Sales(5y)2.3%
Profit Quality(3y)101.16%
Profit Quality(5y)133.78%
High Growth Momentum
Growth
EPS 1Y (TTM)16.04%
EPS 3Y21.43%
EPS 5Y74.14%
EPS Q2Q%13.51%
EPS Next Y16.44%
EPS Next 2Y14.56%
EPS Next 3Y14.64%
EPS Next 5Y12.57%
Revenue 1Y (TTM)5.4%
Revenue growth 3Y10.06%
Revenue growth 5Y16.73%
Sales Q2Q%121.76%
Revenue Next Year5.55%
Revenue Next 2Y5.52%
Revenue Next 3Y5.74%
Revenue Next 5Y-8.39%
EBIT growth 1Y16.71%
EBIT growth 3Y19.07%
EBIT growth 5Y61.62%
EBIT Next Year14.9%
EBIT Next 3Y10.62%
EBIT Next 5Y9.08%
FCF growth 1Y8.51%
FCF growth 3Y8.62%
FCF growth 5Y62.96%
OCF growth 1Y24.03%
OCF growth 3Y11.6%
OCF growth 5Y45.65%

INTERCONTINENTAL HOTELS-ADR / IHG FAQ

Can you provide the ChartMill fundamental rating for INTERCONTINENTAL HOTELS-ADR?

ChartMill assigns a fundamental rating of 5 / 10 to IHG.


What is the valuation status for IHG stock?

ChartMill assigns a valuation rating of 3 / 10 to INTERCONTINENTAL HOTELS-ADR (IHG). This can be considered as Overvalued.


Can you provide the profitability details for INTERCONTINENTAL HOTELS-ADR?

INTERCONTINENTAL HOTELS-ADR (IHG) has a profitability rating of 8 / 10.


Can you provide the PE and PB ratios for IHG stock?

The Price/Earnings (PE) ratio for INTERCONTINENTAL HOTELS-ADR (IHG) is 26.16 and the Price/Book (PB) ratio is -7.35.


What is the expected EPS growth for INTERCONTINENTAL HOTELS-ADR (IHG) stock?

The Earnings per Share (EPS) of INTERCONTINENTAL HOTELS-ADR (IHG) is expected to grow by 16.44% in the next year.