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IHG

NYSE
Neutral · 50/100

InterContinental Hotels Group PLC

Consumer Discretionary
Hotels, Restaurants & Leisure

$156.46

0.0%

Updated Today 12:18 PM ET

Report Card

IHG at a glance — five pillars scored 0–100 from real filed financials.

Value
0
Growth
0
Profitability
0
Health
0
Dividends
0

Overall: Neutral · 50/100. A wider, greener shape means more pillars look healthy. Dividends scores 0 when a company pays none — that is a choice, not a flaw.

Price — Past Year

▲ Up 38.2% over the last 12 months

Price 50-day average 200-day averageDCF fair value ±15%Source: Yahoo Finance · refreshed daily
Key Metrics

Market Cap

$31.51B

P/E

32.73x

Forward P/E (est.)

25.97x

ROE

69.6%

Revenue Growth

5.4%

EPS Growth

26.1%

Profit Margin

14.6%

FCF Yield

2.1%

Debt / Equity

4.08x

ROIC

96.0%

Interest Coverage

5.93x

Current Ratio

0.98x

Dividend Yield

1.1%

Implied Growth (rev. DCF)

6.1%

Rating Score

50/100

Business Overview
Research

InterContinental Hotels Group PLC (IHG) is a large-cap company in the Hotels, Restaurants & Leisure industry, part of the Consumer Discretionary sector of the S&P 500, with a market value around $31.51B.

In its latest reported year it generated about $5.19B in revenue and $758.00M in net profit.

Our model rates IHG Neutral (50/100) on growth, profitability, financial health, and valuation. The summary below is built from its filed financials and current ratios and refreshes automatically.

Economic Moat

Evidence of durable competitive advantage in the filed financials (6 years of history).

Narrow moat signalsMoat evidence score: 62/100

Some durable-advantage evidence, but not across the board — dig into which ingredient is weak and whether it's cyclical or structural.

Operating margin level53/100

22.4% average over the last 3 years

Operating margin stability0/100

±9.4 pts around 30.1% across 5 years

Revenue durability73/100

grew in 4 of the last 5 year-over-year periods

Free-cash-flow consistency100/100

positive in 5 of 5 years

Return on invested capital100/100

96.0% latest fiscal year

A moat can't be proven by numbers alone — this scores the evidence a durable advantage leaves behind (pricing power, consistency, returns on capital), computed the same way for every stock. Pair it with the business overview before concluding anything.

Technical Analysis (Educational)
Research

Technical analysis reads price and volume to judge momentum and timing. It complements the fundamentals above — it does not replace them. Here is what IHG's chart says today, with each tool explained.

Trend — moving averages. A moving average is the average closing price over a window, which smooths out daily noise. IHG trades near $156.46, around its 50-day average ($157.51) and 200-day average ($139.46). Price tangled in its moving averages means there is no clear trend — the stock is ranging.

Momentum — RSI. The Relative Strength Index runs 0–100 and measures how strong recent gains are versus losses. Above 70 is "overbought", below 30 "oversold". At 46 it is in neutral territory — neither stretched nor washed out.

MACD. MACD compares two moving averages to flag shifts in momentum. Its histogram is currently negative — short-term momentum is fading.

Volatility — ATR. Average True Range is the typical daily move. IHG's is $3.16 (~2.0% of price), so swings of about that size each day are normal — handy for setting a stop that isn't too tight.

Support & resistance. Over the last month IHG found buyers near $160.71 (support) and sellers near $175.89 (resistance); its 52-week range is $113.32–$175.89. A decisive break beyond either edge often marks the next move.

Volume. The latest session traded 0.6× the 20-day average — lighter than usual, so the move carries less conviction. Rising volume on up-days suggests real buying; on down-days, real selling.

Educational information to help you read a chart — not a recommendation or a forecast. It updates daily as the price and indicators change.

Revenue Growth
Research

4Y CAGR

31.9%

3/4 checks passedRevenue growingRevenue growth beats sector midpointEPS growingEPS growing faster than revenue

Revenue moved from $1.80B in 2015 to $5.19B in 2025, a 23.5% compound annual growth rate. The most recent year grew a steady 5.4% year over year. Slower, mature growth is common for established businesses.

Profitability
Research
4/4 checks passedProfitableNet margin above sector midpointROE above 12%ROIC above 10%

Gross Margin

31.3%

Operating Margin

23.1%

Net Margin

14.6%

ROE

69.6%

InterContinental Hotels Group PLC keeps about 14.6% of each sales dollar as net profit, with a 31.3% gross margin and 23.1% operating margin. Return on equity is 69.6% and return on invested capital about 96.0%. Margins are moderate — typical of a competitive but profitable business.

Debt Analysis
Research
1/4 checks passedDebt under 1× equityDebt under 2× equityInterest covered 3×+Short-term bills covered

Total Debt

$3.72B

Net Debt

$2.59B

Net Debt / EBITDA

2.17x

Debt / Equity

4.08x

Leverage: debt-to-equity is 4.1x, and operating profit covers interest about 5.9x, with a current ratio of 1.0x. That is elevated leverage, which raises risk if earnings or rates move against it. It carries roughly $3.72B of total debt against $1.13B of cash.

Cash Flow Analysis
Research
3/3 checks passedPositive free cash flowFCF yield above 2%Market expects achievable growth (<8%)

Operating CF

$898.00M

Free Cash Flow

$870.00M

FCF Margin

16.8%

In the latest year InterContinental Hotels Group PLC produced about $898.00M of operating cash flow and $870.00M of free cash flow after capital spending. That is a free-cash-flow yield of about 2.1% on today's price. Cash flow is what ultimately pays shareholders, so it is worth tracking over time.

Dividend Safety

Can the payout survive a bad year? Scored from filed cash flow, earnings coverage, and the raise/cut record.

BorderlineSafety score: 63/100

The dividend is being paid, but coverage or consistency is thinner than an income investor should rely on without a closer look.

Dividend yield

1.1%

Per share (latest FY)

$0.59

Total paid (latest FY)

$270.00M

History on record

6 years

Free-cash-flow coverage100/100

dividend uses 31% of free cash flow

Earnings payout ratio100/100

36% of net income paid out

Raise streak25/100

total dividends increased 2 years in a row

Cut history0/100

payout was cut at least once in the last 6 years

Coverage uses the latest fiscal year as filed with the SEC; the streak counts total dollars paid (per-share figures can carry split artifacts). Educational information, not income advice.

Valuation Analysis
Research
3/4 checks passedPositive earnings (P/E meaningful)P/E below sector's upper bandForward P/E below trailing (earnings growing)Trading below DCF fair value

P/E

32.73x

P/S

4.78x

P/B

14.87x

EV / EBITDA

26.96x

IHG trades at 32.7x trailing earnings (about 26.0x on estimated forward earnings), 4.8x sales, and 14.9x book value. Reverse-engineering today's price implies the market expects roughly 6.1% long-term free-cash-flow growth. That is a premium multiple that needs growth to justify it.

DCF Fair Value (Educational)

A two-stage discounted cash flow on real SEC-filed free cash flow — the intrinsic-value anchor professional analysts triangulate from.

DCF fair value / share

$98.15

Current price

$156.46

-37% · Above fair-value estimate

Starting FCF (latest 10-K)

$870.00M

Growth, years 1–5

5.4%

Fade to terminal, years 6–10

2.5%

Discount rate

9.0%

PV of 10-yr free cash flow$7.14B
PV of terminal value$9.02B
Estimated equity value$16.17B
Shares outstanding165M

Cash flows grow at the stage-1 rate (trailing revenue growth, capped at 20%) for five years, fade to 2.5% by year 10, and continue at that rate forever (Gordon terminal value), all discounted at 9.0%. Small changes in assumptions move the result a lot — treat this as one reference point, not a target price. Educational only, not investment advice.

Metrics vs. Sector Range

Where IHG sits versus its Consumer Discretionary sector peers in the S&P 500.

TTM P/E
32.7xFair
Forward P/E
26.0xFair
P/S ratio
4.8xExpensive
Revenue growth
5.4%Average
EPS growth
26.1%Average
Gross margin
31.3%Average
Net margin
14.6%Strong
ROE
69.6%Strong

Bands show the middle half (25th–75th percentile) of the 85 Consumer Discretionary companies in the S&P 500 — the peer-relative anchor professional comps analysis uses. Context only — not investment advice.

Sector Peer Comparison

How IHG stacks up against its Consumer Discretionary peers — valuation, profitability, and growth versus the sector median.

In the Consumer Discretionary sector (158 S&P 500 companies), IHG ranks #45 of 158 by our overall rating. It trades at a premium versus the sector on earnings (32.7x P/E vs. 25.3x median) with a higher return on equity (69.6% vs. 26.2%) and slower revenue growth (5.4% vs. 6.8%).

P/E vs sector

32.7x

median 25.3x

ROE vs sector

69.6%

median 26.2%

Growth vs sector

5.4%

median 6.8%

Sector rank

#45

of 158 by rating

CompanyP/ERev Gr.Rating
IHGThis stock32.7x5.4%Neutral· 50
QSR36.1x9.3%Neutral· 44
TCOM6.3x17.3%Strong· 85
VIK36.9x20.8%Favorable· 67
FLUT18.9%Weak· 30
H4.2%Weak· 22
YUMC15.4x6.7%Favorable· 61
ARMK41.5x10.2%Weak· 36
Consumer Discretionary median25.3x6.8%24/100

Valuation vs. quality map

sector medianQSRTCOMVIKYUMCARMKIHGP/E — cheaper ←→ pricierROE — more profitable ↑

The sweet spot is upper-left: more profitable (higher ROE) for a lower P/E. Dashed lines mark the sector median.

Compare side by side

Peers are the closest Consumer Discretionary companies by sub-industry and size. Sector median is across all 158 S&P 500 names in the sector. Educational, not a recommendation.

5-Year Projection Model

Project revenue → earnings → price. Edit the assumptions to build your own case.

2030 price target (Base Case)

$0.00 $0.00

vs. $156.46 today · expected CAGR -9%1%

Metric20262027202820292030
Revenue$5.45B$5.72B$6.01B$6.31B$6.62B
Net income$817.27M$858.13M$901.04M$946.09M$993.39M
EPS$4.06$4.26$4.47$4.70$4.93
Share price (low)$81.17$85.22$89.49$93.96$98.66
Share price (high)$133.92$140.62$147.65$155.03$162.79
CAGR (low–high)-48% / -14%-26% / -5%-17% / -2%-12% / -0%-9% / 1%

Educational model on sample fundamentals — not a forecast or investment advice. Outputs are only as good as your assumptions.

Bull Case

The case for IHG:

  • Strong return on equity (69.6%) shows capital is put to work well.
  • As an established S&P 500 member in Consumer Discretionary, it brings scale and a long operating history.
Bear Case

The case against IHG:

  • Elevated leverage (debt/equity 4.1x) adds financial risk.
  • Like any single stock, it is exposed to competition, the economic cycle, and shifts in its end markets.
Key Risks
Research

Valuation risk — at 32.7x earnings, disappointing results could compress the multiple.

Balance-sheet risk — debt/equity of 4.1x magnifies the impact of higher rates or weaker earnings.

Market risk — sector rotation, the economic cycle, and broad sentiment move the stock regardless of fundamentals.

Investment Thesis
Research

On balance, the picture is mixed: InterContinental Hotels Group PLC is a large-cap consumer discretionary business growing at a mature pace, with solid profitability, and a heavier debt load to watch. It trades at 32.7x earnings, which our model scores Neutral (50/100). Weigh this against your own goals and time horizon — this is educational information, not a recommendation.

Analyst Ratings

What 27 Wall Street analysts covering IHG recommend (July 2026). Consensus is a useful sanity check — not a substitute for your own homework.

Hold
consensus · score 3.4 / 5 across 27 analysts
Strong Buy 5Buy 10Hold 7Sell 2Strong Sell 3

Latest SEC Filings

IHG's most recent filings, straight from SEC EDGAR. Annual and quarterly reports are the deep dives; 8-Ks flag material events the moment they happen.

In the Idea Lab

IHG — frequently asked questions

Is IHG a good stock to buy?

We don't give buy or sell advice. Our model rates InterContinental Hotels Group PLC Neutral (50/100) based on its growth, profitability, financial health, and valuation — use that as a research starting point and make your own decision.

What is IHG's rating on The Stocks School?

InterContinental Hotels Group PLC currently scores 50/100 (Neutral) on our transparent model, which weighs real fundamentals: growth, margins, returns on capital, balance-sheet strength, and valuation.

How our ratings work
Where does IHG's data come from?

Live price data plus real fundamentals and 5-year financials pulled directly from InterContinental Hotels Group PLC's SEC filings — refreshed automatically, not hand-entered.

How is the 5-year projection for IHG calculated?

It's a scenario model: it grows revenue at an assumed rate, applies a profit margin and a valuation multiple, and shows the resulting share-price range. The assumptions are yours to change — it's a tool for thinking, not a prediction.

Is this IHG analysis financial advice?

No. Everything on this page is educational research, not financial advice or a recommendation to buy or sell IHG. Always do your own research and consider a licensed professional.

Data notice. Fundamentals and financial statements are sourced from company filings (SEC EDGAR) and market-data providers; prices and market caps refresh on trading days and may be delayed. Ratings, projections, technical signals, and written summaries are model- or rule-generated for education and may simplify or lag the latest filings.

Not advice. Nothing on this page is investment advice or a recommendation to buy, hold, or sell any security. Do your own research and consult a licensed financial professional before investing.