InterContinental Hotels Group PLC (IHG) — Fundamental Analysis & Key Financial Ratios

Kaplio overview: InterContinental Hotels Group PLC

Market cap $25B · 52 weeks $121 – $174 (3 % below the high) · P/E 35.8× · 2027 expected P/E 25.9× · Dividend 1.1 % · 3 years rising · Next earnings February 23, 2027 · expected EPS $3.06 · Closing price, Oct 28 · accounts published Aug 11.

• Valuation: P/E 35.8× (expensive).
• Business: 5-year ROIC 19.1 % (solid).
• Balance sheet: Net debt/EBITDA 2.9× (passes, near the threshold).
• Earnings: 6 of 8 (on track).

What would it be worth at its usual multiples?

At the decade median (13.9×) $65 (-61 %); at its sector median (17.9×) $84 (-50 %). Implied price from applying the reference multiples to today's earnings (or book value, or FFO) per share. Not a fair value: it is where the stock would trade at its usual multiples.

What matters in consumer cyclicals: 6 of 8 pass

• Current Ratio 0.66, fails.
• EV/Sales vs history 4.9×, fails.
• 5y avg operating margin 21.2 %, passes.
• Inventory turnover 706.2×, passes.
• 5y avg ROIC 19.1 %, passes.
• Net debt / EBITDA 2.9×, passes, near the threshold.
• Altman Z-Score 3.2, passes.
• P/E read in reverse (cyclicals) 35.8×, passes.

Against its peers (reference peers) — InterContinental Hotels Group PLC: P/E 35.8×; EV/EBITDA 15.6×; ROIC 33.0 %; $24.5B. Hyatt Hotels Corporation (P/E 211×; EV/EBITDA 23.3×; ROIC 1.9 %; $16.4B), H World Group Limited (P/E 18.6×; EV/EBITDA 12.7×; ROIC 9.4 %; $13.9B), Hilton Worldwide Holdings Inc. (P/E 51.3×; EV/EBITDA 28.8×; ROIC 18.1 %; $78.7B).

Expensive or cheap against its last ten years?

P/E at each close: today 35.8× · median 13.9× · minimum 4.9× · maximum 37.6× · cheap below 12.4× · expensive above 17.6×. It has been cheaper than today 99% of the time over its last ten years.

Dividend

solid · Yield 1.1 % ($1.73 per share in 2025) · Years raising it 3 · 5-year growth +7 % a year · Free cash flow coverage 3.0× · With $1,000 invested today you'd collect $11.20 a year ($0.93 a month).