InterContinental Hotels Group PLC (IHG) fair value: what the stock is really worth
As of Sep 24, 2026: fair value of InterContinental Hotels Group PLC $97.57, price $158, upside -38.1%, quality 73 out of 100. Calculated from audited financials with 26 valuation models and 37 quality factors, updated daily.
69 individual criteria per stock, every one traceableSee the method →
Price vs Fair Value
White line = price, green steps = our fair value per fiscal year, dashed = 300-day average. As of Sep 24, 2026.
How to read this chart
60‑month range $43.95 – $174.13 · fair‑value band $58.01 – $131.48 · the $157.66 price screens above the $97.57 fair value. Green steps = our fair value per fiscal year (point-in-time, no hindsight). 1 fiscal year is left out: there the valuation rested on only a fraction of the usual models. Dashed = 300-day average. As of Sep 24, 2026.
Follow InterContinental Hotels Group PLC ADR in your weekly email
Every Wednesday you see whether InterContinental Hotels Group PLC ADR is on track or worth a review, plus price against fair value. Free, up to 3 stocks.
We send you a confirmation link. Unsubscribe with one click.
InterContinental Hotels Group PLC owns, manages, franchises, and leases hotels in the United Kingdom, the United States, and internationally.
Show more
InterContinental Hotels Group PLC owns, manages, franchises, and leases hotels in the United Kingdom, the United States, and internationally. It operates hotels under the Six Senses, Regent, InterContinental Hotels & Resorts, Vignette Collection, Kimpton Hotel, Hotel Indigo, voco, Ruby, HUALUXE, Crowne Plaza, Iberostar Beachfront Resorts, EVEN Hotels, Holiday Inn Express, Holiday Inn, Garner, avid hotels, Atwell Suites, Staybridge Suites, IHG, Holiday Inn Club Vacations, and Candlewood Suites brand names. The company also provides IHG Rewards loyalty program. InterContinental Hotels Group PLC was formerly known as Six Continents PLC and changed its name to InterContinental Hotels Group PLC in June 2003. The company was founded in 1777 and is headquartered in Windsor, United Kingdom.
Stock analysis
InterContinental Hotels Group PLC ADR (IHG) currently trades at $157.66, while our model-based Fair Value estimate is $97.57, implying the stock looks roughly 61.6% overvalued today.
Show more
Valuation
Bull case: the Growth Earnings group reads highest at a median of $101.14 per share, and 0 of the 21 models we run sit above the $157.66 price.
Bear case: the Earnings-Based group reads lowest at $36.94, and 21 of the 21 models stay below the price. Evidence for this calculation is medium.
Scenario range: $58.01 (bear) to $131.48 (bull), the price of $157.66 sits above it. Bear and bull are the same models on cautious and optimistic assumptions, a range, not a price target.
Quality & growth
The Quality Score stands at 73/100 (solid quality), in the Consumer Cyclical sector.
Healthy Growth: Revenue growth appears healthy and is supported by profitability and cash-flow quality.
InterContinental Hotels Group PLC ADR reported revenue of $5.2B in FY2025 versus $2.9B in FY2021, a compound +15.6%/yr. Reported net income was $758M in FY2025, compounding +29.9%/yr from FY2021.
Key figures
Market cap $24.6B · P/E ratio 32.4 · P/S ratio 4.73 · EPS (TTM) $4.87 · Dividend yield 1.2% · Net margin 14.6% · Return on assets (EBIT) 18.4% · Operating margin 22.2%.
Competitive moat
Our AI-assisted moat analysis scores the competitive advantage at 48 out of 100 (medium confidence).
What moves the price
The share trades about 9% below its 52-week high and 35% above its 52-week low, currently above its 200-day average.
For context, the median of 10 Consumer Cyclical peers we cover trades at −27% fair-value upside, at −38%, IHG screens richer than that median.
Fair Value models
Bear $58.01Fair Value $97.57Bull $131.48
Model ⓘEach model values the company its own way (discounted cash flow, earnings, assets, dividends). The fair value above is their evidence-weighted blend, not the output of a single model. Based on fiscal year 2025 figures (about 9 months old). Earnings retained since then ($2.21 per share) are deliberately not added.Bear ⓘBear = the cautious scenario: the same model computed with conservative anchors (lower growth, margins and valuation multiples). Together with Bull it frames a plausible valuation range, not a price target.BaseBull ⓘBull = the optimistic scenario: the same model computed with favourable anchors (higher growth, margins and valuation multiples). Together with Bear it frames a plausible valuation range, not a price target.Evidence ⓘEvidence = how well-backed THIS model's estimate is for this stock (0–100): how complete and reliable its input data are, and how well the model fits the company. The final Fair Value is an evidence-weighted blend, so better-evidenced models count more. Green ≥70, amber 50–69, grey below 50.
Growth Quality ⓘGrowth is valuable only when reinvestment earns attractive returns (Aswath Damodaran): sustainable growth depends on return on capital, reinvestment and efficiency. Basis: total company revenue over the periods shown on the cards (3Y/5Y/all years), not per share, so a merger can show up as a growth jump; per-share earnings growth is in the value-creation card.95/100
Revenue growth appears healthy and is supported by profitability and cash-flow quality.
Revenue growth 1 year
+5.4%
Revenue growth 3 years ⓘMeasures the company's TOTAL revenue from reported annual statements: compound average growth per year (CAGR) from the fiscal year 3, 5 or N years back to the most recent comparable fiscal year. Not per share: buybacks do not change this number, and a merger can appear as a growth jump. Per-share growth (which does include buybacks) is in the value-creation card.
+10.1%
Revenue growth 5 years ⓘMeasures the company's TOTAL revenue from reported annual statements: compound average growth per year (CAGR) from the fiscal year 3, 5 or N years back to the most recent comparable fiscal year. Not per share: buybacks do not change this number, and a merger can appear as a growth jump. Per-share growth (which does include buybacks) is in the value-creation card.
+16.7%
Start year 2020 (pandemic). Over 10 years: +11.1% a year
Revenue growth 25 years ⓘMeasures the company's TOTAL revenue from reported annual statements: compound average growth per year (CAGR) from the fiscal year 3, 5 or N years back to the most recent comparable fiscal year. Not per share: buybacks do not change this number, and a merger can appear as a growth jump. Per-share growth (which does include buybacks) is in the value-creation card.
−0.2%
’14
’15
’16
’17
’18
’19
’20
’21
’22
’23
’24
’25
What shareholders gained per year (last 5 years) ⓘWhat the business itself delivers per year: earnings growth per share plus the dividend yield. This is what you get IF the market keeps valuing the stock the same way: it contains no assumption about the market changing its mind. Computed per share, so buybacks count and a merger does not pass as growth. For a company that pays no dividend it is pure earnings growth per share. Period: earnings growth per share as CAGR over the last 5 reported fiscal years (annual statements), plus the current dividend yield. The start value is the median of the three years around the start, so a single crisis year (a pandemic or a write-down) does not distort the rate. Basis: adjusted.
+22.8%
Earnings growth per share plus dividend.
Earnings per share, growth per year+21.6%
Dividend (yield on the price)1.2%
Pace: 5 vs 10 years ⓘTwo data points, not a trend model: earnings growth per share over the last 5 fiscal years against the last 10. Labelled "steady" when both rates are within 3 percentage points of each other, otherwise picking up or flattening. Shown only when ten years of history exist.22% vs 9%, picking up
Profit margin 2019 to 2025 ⓘOperating margin then vs now, from reported annual statements. A falling margin after a boom year is the classic peak-earnings signal: the growth rate then leans on an inflated base.14% → 23%
Start year 2020 (pandemic)
Growth Forecast
A lot of optimism in the price
The price assumes about as much growth as the company has delivered so far and more than analysts expect.
What the price assumes ⓘThis turns our valuation around: instead of asking what the share is worth, it asks what growth the current price requires. It uses the cash the company keeps after all spending (free cash flow), the same discount rate as our models, five years of growth, then slowing evenly to 2 % a year by year ten. Compared with the analysts' sales forecasts extended to the same five years (at least three analysts, for context only, it does not enter the Fair Value): within 3 percentage points counts as "in line" (amber), below that little optimism (green), above that a lot of optimism (red).
+17.1%
Yearly growth needed for the next five years to justify today's price.
What forecasts expect ⓘAnalysts publish sales forecasts for the next two fiscal years. For the years after that, growth slows evenly to 2 % a year by year ten (2 % is the long-run rate our models use). Projected years are marked as such.
−9.3%
Yearly sales growth analysts expect, extended to five years.
After inflation (USA: IMF forecast 2.4% a year to 2030, 3.1% from 2016 to 2025) that is about +14.4% a year for the price and −11.4% for the forecasts.
News mood ⓘNews mood, the average tone of recent news (100 articles), rated against how stocks are usually covered. 🚀 Hype = unusually upbeat · 🙂 Positive = above average · 😐 Neutral = typical · 🙁 Negative = below average · 😨 Very negative = unusually downbeat. It reflects the tone of coverage, not our valuation.Positive
Recent news coverage is more positive than average.
Compare InterContinental Hotels Group PLC ADR with another stock
Price, fair value, quality and upside side by side.
Free, no sign-up
Peer GroupⓘHow this stock ranks against its industry: the green marker is this stock, the band is the typical 25–75% peer range, and the tick is the median.Lodging · 169 stocks
Beats the industry median on 4/12 measures
Overall it trails its industry peers.
Valuation
Quality Score73 · Top 25%
Fair Value upside−38% · Below median
Profitability
Return on equity (TTM)Negative equity ⓘThe company's equity is below zero, for example after large share buybacks. A ratio to negative equity has no meaning, so we show no number here and do not rank it against the peer group.
Return on assets15% · Top 25%
Net margin (TTM)15% · Above median
Operating margin (TTM)22% · Above median
Growth and dividend
Revenue growth3% · Below median
Dividend yield (TTM)1.2% · Below median
Balance sheet
Debt / equityNegative equity ⓘThe company's equity is below zero, for example after large share buybacks. A ratio to negative equity has no meaning, so we show no number here and do not rank it against the peer group.
Valuation Multiplesvs Lodging median · lower = cheaper
P/E (TTM)32.4× · Pricier than median
P/BNegative equity ⓘThe company's equity is below zero, for example after large share buybacks. A ratio to negative equity has no meaning, so we show no number here and do not rank it against the peer group.
P/S (TTM)4.73× · Priciest 25%
P/FCF28.2× · Priciest 25%
EV/EBITDA21.8× · Priciest 25%
PEG1.61× · Pricier than median
Strength profile in five axes (Snowflake)
This stockSector peers
VALUE (fair-value potential)0· sector 19
FUTURE (revenue growth)14· sector 25
PAST (return on equity)0· sector 13
HEALTH (low debt)0· sector 89
DIVIDEND (yield)23· sector 30
VALUE 0: the price sits above our fair-value range.
PAST 0: with negative equity (buybacks among others) return on equity is not meaningfully computable.
For bloggers, editors and developers: paste this into your site or blog (a “Custom HTML” block in WordPress), it shows the current fair value and links back here. Free, plain HTML, and welcome. Full data streams (CSV/JSON) at /developers.
Cite: Fair Value Calculator (2026). "InterContinental Hotels Group PLC ADR Fair Value". https://www.fairvalue-calculator.com/stock/IHG
Frequently asked questions
Is InterContinental Hotels Group PLC (IHG) overvalued or undervalued?
As of Sep 24, 2026, our model estimates a fair value of $97.57 versus a price of $157.66, about −38% upside (overvalued).
What is the fair value of IHG?
Our model-based fair value for InterContinental Hotels Group PLC ADR is $97.57 (as of Sep 24, 2026), built from audited fundamentals. The current price: $157.66.
What is the quality score of IHG?
InterContinental Hotels Group PLC ADR has a Quality Score of 73/100. It measures business quality (profitability, growth, cash flow, balance-sheet strength, investment discipline, share issuance). Market factors such as price momentum and volatility do not enter the number; they are shown separately in the detail view.
What is the price target for InterContinental Hotels Group PLC (IHG)?
Our model-based price target is the fair value of $97.57 (as of Sep 24, 2026) from 21 valuation models. Cautious scenario $58.01, optimistic scenario $131.48. It is a calculation from audited fundamentals, not an analyst target.
What is the InterContinental Hotels Group PLC ADR stock forecast for 2026?
Our models put fair value at $97.57, about −38% upside versus a price of $157.66 (overvalued). Cautious scenario $58.01, optimistic scenario $131.48. The calculation is refreshed regularly with new filings.
What is the revenue of InterContinental Hotels Group PLC (IHG)?
InterContinental Hotels Group PLC ADR reported trailing-twelve-month revenue of about $5.2B (latest available figure, as of Sep 24, 2026).
Does InterContinental Hotels Group PLC ADR pay a dividend?
InterContinental Hotels Group PLC ADR currently shows a dividend yield of about 1.17% relative to its recent price (as of Sep 24, 2026).
What growth is priced into InterContinental Hotels Group PLC (IHG)?
For today's price to be fair in a discounted-cash-flow model, InterContinental Hotels Group PLC ADR would have to grow free cash flow by +17.1 % per year for five years (discount rate 9.3 %, then slowing evenly to 2 % perpetual growth by year ten). Over the last 5 years revenue grew +16.7 % per year. As of Sep 24, 2026.
What discount rate (WACC) does the fair value of IHG use?
Our models discount InterContinental Hotels Group PLC ADR at 9.3 %: a base by market capitalisation (large), damped by beta 1.05, country premium for USA. The same rate applies in all 26 models.
What is a reverse DCF?
A reverse DCF turns the usual calculation around. Instead of deriving a value from assumptions, it takes today's price as given and asks: what free-cash-flow growth would a company have to deliver for exactly this price to be fair? The result is not a forecast but the expectation already priced in. For InterContinental Hotels Group PLC ADR that is +17.1 % per year a year over ten years, using the same discount rate (9.3 %) and the same formula as our fair value.
How much growth has InterContinental Hotels Group PLC (IHG) delivered so far?
Over the past 5 years revenue at InterContinental Hotels Group PLC ADR grew +16.7 % a year. The price currently implies +17.1 % per year free-cash-flow growth a year. Comparing the two shows how much confidence is in the price: if it demands more than has been delivered, the business has to accelerate for the maths to work.
How fast is the sector of InterContinental Hotels Group PLC (IHG) growing?
The median revenue growth in the sector is +2.6 % a year. That is the yardstick for the growth priced into InterContinental Hotels Group PLC ADR (+17.1 % per year a year): it shows whether the expectation is within the usual range or beyond it.
What is the free cash flow yield of InterContinental Hotels Group PLC (IHG)?
The free-cash-flow yield on the price is 3.54 %: that much free cash flow InterContinental Hotels Group PLC ADR produces per unit of market value. When it exceeds the discount rate of our models (9.3 %), the business already earns more than its cost of capital demands, and the price needs little additional growth.
What is the intrinsic value of InterContinental Hotels Group PLC (IHG)?
Intrinsic value and fair value mean the same thing: what the business is worth on its numbers, independent of the share price. For InterContinental Hotels Group PLC ADR it is $97.57 per share (as of Sep 24, 2026), against a price of $157.66. It is the blended result of 21 valuation models (cash flow, earnings, asset, dividend).
Is InterContinental Hotels Group PLC ADR stock overvalued or undervalued in 2026?
As of Sep 24, 2026, IHG trades above its calculated fair value: price $157.66, fair value $97.57, a gap of about −38% (overvalued). The calculation is refreshed with each new quarterly report, so the verdict can change during the year.
Is fair value the same as the market price of IHG?
No. The price is what the market pays today ($157.66); the fair value is what the company's own numbers justify ($97.57). For InterContinental Hotels Group PLC ADR the two are $60.09 per share apart. That gap is exactly why we show both numbers side by side.
How much is InterContinental Hotels Group PLC ADR worth?
The market values InterContinental Hotels Group PLC ADR at about $24.6B (market capitalisation, as of Sep 24, 2026). Per share that is $157.66; our models calculate a fair value of $97.57 per share.
What do the bullish and bearish scenarios say about IHG?
Our models span a range for InterContinental Hotels Group PLC ADR: cautious scenario $58.01, base $97.57, optimistic $131.48 per share (as of Sep 24, 2026, price $157.66). The range comes from different growth and margin assumptions, not from analyst opinions.
What is the P/E ratio of IHG?
InterContinental Hotels Group PLC ADR trades at a price-to-earnings ratio of 32.4 (as of Sep 24, 2026). A P/E on its own says little: it compares the price with ONE year of profit, while our fair value of $97.57 is built from several models across several years. Other multiples: PEG 1.6, P/S 4.7, EV/EBITDA 21.8.
What is the PEG ratio of IHG?
The PEG ratio of InterContinental Hotels Group PLC ADR is 1.61 (P/E divided by earnings growth, as of Sep 24, 2026). That is above 1, so the growth is already paid for in the price.
How solid is the balance sheet of InterContinental Hotels Group PLC (IHG)?
Balance-sheet figures for InterContinental Hotels Group PLC ADR (as of Sep 24, 2026): negative equity, so no return on equity and no debt-to-equity ratio. They feed the Quality Score of 73/100, which measures business quality independently of the share price.
How far is IHG from its 52-week high?
InterContinental Hotels Group PLC ADR trades at $157.66, about 9% below its 52-week high of $174.13 and 35% above the low of $116.75 (as of Sep 24, 2026). Distance from the high says nothing about value: that is what the fair value of $97.57 is for.
Which stocks are comparable to InterContinental Hotels Group PLC ADR?
From the same area (Consumer Cyclical) we also value Marriott International, Inc, Hilton Worldwide Holdings, Hyatt Hotels Corporation, H World Group, among others. Each of them has its own fair-value calculation on this site using the same models, so the comparison is like for like.
Is InterContinental Hotels Group PLC ADR stock attractive at the current price?
The data as of Sep 24, 2026: price $157.66, calculated fair value $97.57 (−38%), Quality Score 73/100, from 21 models. Whether that fits your horizon and risk tolerance is your call. We provide the calculation, not investment advice.
How is the fair value of IHG calculated?
We run InterContinental Hotels Group PLC ADR through 21 models from four families: discounted cash flow, earnings models, asset and balance-sheet models, and dividend models. Every model gets the same audited fundamentals; the result is the weighted average of $97.57, with the spread shown as a cautious and an optimistic scenario.
Is it still worth investing in stocks now?
The global stock market currently sits 14.0 % above its aggregate fair value. InterContinental Hotels Group PLC ADR itself currently trades above fair value. An expensive market is no reason to stay out and no reason to buy everything at once: keep a broad savings plan running, buy single stocks only with money you can do without, and hold part of your money liquid while the market is high. The full picture including sectors is on is it worth investing now.
What is the share price of InterContinental Hotels Group PLC (IHG)?
The closing price on Sep 24, 2026 was $157.66. Our model-based fair value is $97.57, about −38% upside (overvalued). We carry closing prices from our data provider, not a live tick.
What should I pay attention to with InterContinental Hotels Group PLC ADR right now?
A high-quality business (quality 73/100), yet the market already pays well above fair value. Quality at a full price, with little margin of safety. The price sits above even our optimistic bull case ($131.48). The favourable scenario is already priced in. A fairly wide model range ($58.01 to $131.48) leaves room in how you read the outcome.
Where does the earnings growth of InterContinental Hotels Group PLC (IHG) come from?
Earnings per share at InterContinental Hotels Group PLC ADR grew +2.2 % a year from 2014 to 2025. Broken into its drivers: revenue per share +12.9 %, EBIT margin −8.5 %, tax rate −0.9 %, residual (interest, one-offs) −0.1 %. The four rates multiply to the earnings growth rate, they do not add up. Start and end are three-year averages so a single exceptional year does not distort the result.
Key figures of InterContinental Hotels Group PLC ADR
How large is the market capitalisation of InterContinental Hotels Group PLC (IHG)?
The market capitalisation of InterContinental Hotels Group PLC ADR is $24.6B. The stock-market value of the whole company: share price times number of shares. It is what the market asks for the entire business today.
What is the P/S ratio of InterContinental Hotels Group PLC (IHG)?
The price-to-sales ratio of InterContinental Hotels Group PLC ADR is 4.73 (P/E × margin). Price to sales: market value relative to yearly revenue. Useful when profit is thin or distorted.
What are the earnings per share of InterContinental Hotels Group PLC (IHG)?
Earnings per share at InterContinental Hotels Group PLC ADR are $4.87 (price ÷ EPS = P/E 32.4). Earnings per share over the last twelve months: total profit spread across every single share.
What is the dividend yield of InterContinental Hotels Group PLC (IHG)?
The dividend yield of InterContinental Hotels Group PLC ADR is 1.2% (payout 37.9%). Yearly dividend relative to the share price. 3% pays 3 per 100 invested. Below: how much of profit is used for it.
What is the net margin of InterContinental Hotels Group PLC (IHG)?
The net margin of InterContinental Hotels Group PLC ADR is 14.6% (fiscal year 2025). How much of every unit of revenue ends up as profit. 10% means 10 cents of profit per dollar of sales.
What is the EBIT return on assets of InterContinental Hotels Group PLC (IHG)?
On an EBIT basis the return on assets of InterContinental Hotels Group PLC ADR is 18.4% (avg 5y). Operating profit (EBIT) relative to everything the company owns, as a multi-year average. It describes the business model rather than one good or bad year.
What is the operating margin of InterContinental Hotels Group PLC (IHG)?
The operating margin of InterContinental Hotels Group PLC ADR is 22.2% (last twelve months). Profit from the core business (before interest and taxes) relative to revenue.
How fast is revenue growing at InterContinental Hotels Group PLC (IHG)?
Revenue at InterContinental Hotels Group PLC ADR is growing +2.7% versus a year earlier (3y avg +10.1%). How much revenue grew versus a year earlier (YoY). The 3-year average next to it puts the single year in context.
How fast are earnings growing at InterContinental Hotels Group PLC (IHG)?
Earnings per share at InterContinental Hotels Group PLC ADR are growing +7.7% versus a year earlier. How much earnings per share grew versus a year earlier.
How much net debt does InterContinental Hotels Group PLC (IHG) carry?
The net debt of InterContinental Hotels Group PLC ADR is $3.5B (fiscal year 2025, ≈ 4.0 yrs of FCF). Debt minus cash on hand. The note shows how many years of free cash flow could in theory pay it off.
Free · no account needed
Continue in the live analysis
Fair value and trend for 35,000+ stocks, watchlist, comparison and the diversification check. You can also try 14 days of Pro there, no card.
Some data
Sep 24, 2026