InterContinental Hotels Group (IHG) Fair Value & Analysis
Consumer Cyclical · US · Market cap $25.4B
InterContinental Hotels Group
IHG · US
Fair value as of: Jul 17, 2026
From 21 valuation models · updated 24 days ago
Share price −3.6% over the past month.
A solid business, but screening 46% overvalued on our models.
What matters 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 ($112.36). The favourable scenario is already priced in.
- A fairly wide model range ($51.26 to $112.36) leaves room in how you read the outcome.
Price vs Fair Value (5 years)
White line = price, green steps = our fair value per fiscal year, dashed = 300-day average. As of Jul 17, 2026.
How to read this chart
60‑month range $43.95 – $174.13 · fair‑value band $51.26 – $112.36 · the $157.51 price screens above the $85.18 fair value. Green steps = our fair value per fiscal year (point-in-time, no hindsight). Dashed = 300-day average. As of Jul 17, 2026.
Analysis
InterContinental Hotels Group (IHG) currently trades at $157.51, while our model-based Fair Value estimate is $85.18, implying the stock looks roughly 45.9% overvalued today. The Quality Score stands at 73/100 (solid quality), in the Consumer Cyclical sector. Bear case: priced above our estimate, the market already discounts strong expectations. Bull case: above-average quality can justify a premium, the entry price still matters most (evidence: high).
Over the trailing twelve months, InterContinental Hotels Group generated revenue of $5.2B at a net margin of 14.6%. Revenue grew 2.7% year over year. Net debt stands at $3.5B. The stock trades on a trailing P/E of 35.2. Fundamentals as of Jul 17, 2026
Our scenario range runs from $51.26 (bear case) to $112.36 (bull case); at $157.51, the current price sits above that range. Bear and bull are the same models run on conservative and optimistic assumptions (margins, growth, valuation multiples), so a plausible valuation range, not a price target. The share trades about 9% below its 52-week high and 45% above its 52-week low, currently above its 200-day average. For context, the median of 10 Consumer Cyclical peers we cover trades at -62% fair-value upside, at -46%, IHG screens cheaper than that median.
Fair Value models
Each model estimates fair value its own way; the Fair Value above is the evidence-weighted blend. Evidence (0–100) measures how completely this model’s inputs are available: well-fed models carry more weight in the blend. The spread across models is intentional, each one stresses a different value driver; dividend models, for instance, come out structurally low when payout is small.
All 21 models by family
Widest divergence: Growth Earnings ($101.14) versus Earnings-Based ($36.94). Highest evidence: Growth DCF (80).
Key figures & financial health
More key figures
Figures from reported company fundamentals · as of Jul 17, 2026. TTM = trailing twelve months.
Quality Score breakdown
Of which business quality 71 · Market factors (momentum, volatility) 70
Non-valuation factor families (profitability, growth, cashflow, financial strength, momentum …), each academically grounded. Valuation itself sits in the Fair Value and is deliberately excluded here to avoid double-counting.
About the company
InterContinental Hotels Group PLC owns, manages, franchises, and leases hotels in the United Kingdom, the United States, and internationally.
Full company description
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.
Company description, as reported by the company or data provider.
Revenue & earnings trend
FY2021 – FY2025 · reported fiscal years
InterContinental Hotels Group 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.
IHG screens 46% overvalued. Compare with Marriott International, Inc →
Recent news
External third-party headlines (Yahoo Finance, Reuters and others), not an editorial selection.
- InterContinental Hotels Group PLC Announces Transaction in Own Shares - August 03
- InterContinental Hotels Group PLC Announces Transaction in Own Shares - July 31
- InterContinental Hotels Group PLC Announces Transaction in Own Shares - July 30
- IHG Hotels & Resorts Launches AI Conversational Search Across its Digital Channels, Transforming the Guest Experience
Peer Group
Lodging · 170 stocks
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.
Valuation Multiples vs Lodging median · lower = cheaper
Snowflake
Five quick dimensions, each 0 to 100: VALUE (fair-value potential), FUTURE (revenue growth), PAST (return on equity), HEALTH (low debt), DIVIDEND (yield). Green = this stock, grey = typical sector peer.
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.
Insider activity: 40/100
Values & ESG
Does this company touch areas you may want to avoid? The classification is inferred from sector and industry.
ESG scores are not available for this stock yet. Values and ESG data are contextual and can differ between providers.
Similar stocks
10 more Lodging stocks, each showing price versus our Fair Value estimate (as of Jul 17, 2026).
| Stock | Price | Fair Value | vs Fair Value |
|---|---|---|---|
| Marriott International, Inc MAR | $369.05 | $135.64 | -63% |
| Hilton Worldwide Holdings HLT | $328.48 | $123.67 | -62% |
| Hyatt Hotels Corporation H | $191.00 | $47.69 | -75% |
| H World Group HTHT | $42.67 | $47.55 | +11% |
| Accor SA AC | €47.25 | €39.26 | -17% |
| The Indian Hotels Company INDHOTEL | ₹743.20 | ₹260.68 | -65% |
| Wyndham Hotels & Resorts, Inc WH | $78.54 | $24.02 | -69% |
| Hanjin Kal, 180640 | 113,500 KRW | 36,890 KRW | -67% |
| Jabal Omar Development Company 4250 | 16.00 SAR | 11.64 SAR | -27% |
| Makkah Construction and Development Company 4100 | 81.95 SAR | 36.25 SAR | -56% |
Compare InterContinental Hotels Group with another stock
Price, fair value, quality and upside side by side.
Explore undervalued stocks
More undervalued Consumer Cyclical stocks →
Frequently asked questions
Is InterContinental Hotels Group (IHG) overvalued or undervalued?
What is the fair value of IHG?
What is the quality score of IHG?
What is the revenue of InterContinental Hotels Group (IHG)?
What is the net profit margin of IHG?
Does InterContinental Hotels Group pay a dividend?
How we calculate Fair Value
Each company is valued through a stack of independent intrinsic-value models (DCF variants, residual-income, multiples and more), blended into one family-balanced consensus and weighted by how much trustworthy data backs it. A separate quality layer scores the fundamentals. Every input is real reported data, nothing guessed.
Track InterContinental Hotels Group and try Pro for 14 days
One email gets you 14 days of full Pro (review alerts, the 35,000+ stock screener, the diversification check) plus the monthly Top-25 report of the most undervalued quality stocks. No card, cancel anytime.
Zero risk: nothing is ever charged. After 14 days you decide whether to stay.