Intrinsiqq
InterContinental Hotels Group PLC ADR logoInterContinental Hotels Group PLC ADRIHG
$167.78-1.81%
InterContinental Hotels Group PLC ADR logo

InterContinental Hotels Group PLC ADR

IHG

$167.78

-$3.10 (-1.81%)

⊜ Compare
ProfitabilityStrong marginsGrowthSteady growthCash FlowStrong conversionValuationNot cheap
What stands out

Margins and capital returns are both well above average: 23.41% operating margin, ROIC at 20.70%. Consistent with durable pricing power, though that alone doesn't make it a buy.

What's changing

Revenue grew 5.4%, steady but not accelerating.

What deserves caution

At 34x earnings, the current multiple leaves limited room for execution misses or growth deceleration. Net debt of $3.50B represents 4.3x FCF, leverage limits flexibility.

Valuation context

34.5x earnings, 31.6x FCF. Not cheap, the quality is already reflected in the price. Upside from here requires either margin expansion or growth re-acceleration, not just continuation.

Price History

+34.2%

Valuation & Multiples

Based on TTM earnings · Diluted shares

Market Cap$25.91B
EPS$4.87
P/E34.49
P/FCF31.55
EV/EBITDA20.34
FCF Yield3.2%
Div. Yield1.10%
Net Debt/FCF4.3x
52-Week Range
$121.46$174.13

Profitability & Returns

Revenue (TTM)

$5.19B

▲ +5.4% YoY

Net Income (TTM)

$759M

▲ +20.9% YoY

Op. Margin

23.41%

▲ +2.3pp YoY

ROIC

20.70%

▲ +0.7pp YoY

Cash Flow & Balance Sheet

FCF (TTM)

$821M

▲ +27.1% YoY

Op. Cash Flow (TTM)

$898M

▲ +24.0% YoY

Net Debt

$3.50B

Cash & Equiv.

$1.10B

3Y CAGR: +10.1%

3Y CAGR: +14.5%

Continue Research

Is InterContinental Hotels Group PLC ADR (IHG) overvalued?

At a P/E of 34.5 and a price-to-free-cash-flow of 31.6, InterContinental Hotels Group PLC ADR (IHG) trades above a two-stage DCF intrinsic value of about $102.01 per share, so at $167.78 the stock looks overvalued (39.2% above estimated intrinsic value). A high multiple is not the same as overvalued: fast-growing, high-quality businesses can deserve a premium. See the general approach in how to tell if a stock is overvalued.

On quality, InterContinental Hotels Group PLC ADR scores 75/100 on Intrinsiqq's quality scorecard (a solid business on these measures), weighing growth, margins, returns on capital, share count, and balance-sheet strength. It currently yields about 1.1%; see dividend safety for coverage and history. All figures are computed from company filings; read the full methodology, or see how the market compares in our US profitability statistics. This is analysis, not investment advice.

Frequently asked

What is InterContinental Hotels Group PLC ADR's fair value?+

Intrinsiqq's two-stage DCF estimates an intrinsic value of about $102.01 per share for IHG, projecting its recent free cash flow forward with a growth rate that fades toward a long-run rate and discounting it back to today. Applying a 25% margin of safety gives a more conservative fair-value entry around $76.51. At today's $167.78, that puts the stock about 39.2% above estimated intrinsic value. The result is sensitive to the growth and discount-rate inputs, so it is best to run conservative, base and optimistic cases. You can adjust all of them yourself with the sliders on the DCF tab.

Is InterContinental Hotels Group PLC ADR a high-quality business?+

InterContinental Hotels Group PLC ADR scores 75 out of 100 on Intrinsiqq's quality score, a weighted blend of 8 metrics each scored 0 to 100, which makes it a solid business on these measures. Recent fundamentals include a 23.4% operating margin and a 20.7% return on invested capital. The score weighs revenue and free-cash-flow growth, operating margins, return on invested capital, share-count change, and balance-sheet strength, all computed from company filings, not opinion. Because valuation only means something relative to quality, the full metric-by-metric breakdown is on the quality scorecard.

Does InterContinental Hotels Group PLC ADR (IHG) pay a dividend, and how much?+

Yes, InterContinental Hotels Group PLC ADR pays a regular dividend of about $1.85 per share per year (typically in quarterly installments), a yield of roughly 1.1% at the current price. That is a payout ratio of about 37.5% of earnings, so the dividend is amply covered by earnings. InterContinental Hotels Group PLC ADR has grown the dividend at roughly 16.0% a year over the past few years. A low headline yield is not the same as a weak dividend: what matters is how well earnings and free cash flow cover the payout and whether it is growing, not the percentage alone. For IHG's full payout history, growth streak and dividend-safety score, see the dividends tab.

Is InterContinental Hotels Group PLC ADR a good stock to buy right now?+

That depends on valuation and quality together, not either alone. IHG currently trades above its estimated intrinsic value and scores 75/100 on quality (solid). It also yields about 1.1%. A cheap price is only a bargain if the business is durable, and a premium can be justified by genuine quality, so the two questions, "is it cheap?" and "is it good?", only make sense side by side. Read the valuation against the quality scorecard, run the DCF on your own assumptions, and decide for yourself. This is analysis from company filings, not investment advice.

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Data sourced from company filings and third-party price providers. Scores, valuations, and metrics are algorithmic estimates. This is not investment advice. See our Terms and Methodology.

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Intrinsiqq is a Netherlands-based company operating in Rotterdam, KvK 73238007.