Overview Dividends

(IHG) InterContinental Hotels - Ratings and Ratios

Exchange: NYSE • Country: United Kingdom • Currency: USD • Type: Common Stock • ISIN: US45857P8068

Hotels, Franchising, Loyalty, Management

IHG EPS (Earnings per Share)

EPS Growth (3Y CAGR): -68.61%
EPS Trend (3Y Correlation): -28.3%

IHG Revenue

Revenue Growth (3Y CAGR): 25.01%
Revenue Trend (3Y Correlation): 69.3%

Description: IHG InterContinental Hotels

InterContinental Hotels Group PLC (NYSE: IHG) owns, manages, franchises, and leases a portfolio of hotel properties across the United Kingdom, United States, and more than 100 other countries, operating under 20+ brands ranging from luxury (Six Senses, Regent) to mid-scale (Holiday Inn, Holiday Inn Express) and extended-stay concepts (Staybridge Suites, Candlewood Suites). The company also runs the IHG Rewards loyalty program, which had roughly 115 million active members as of Q2 2024.

Key performance indicators that signal IHG’s near-term outlook include a 2024 RevPAR growth of 7 % year-over-year, an occupancy rate of 71 % in the first half of the year, and a pipeline of approximately 500 new hotels slated to open by 2027, which should lift franchise revenue and improve asset-light margins.

Sector-wide drivers affecting IHG are the rebound in discretionary travel spending as consumer confidence rises, the sensitivity of hotel demand to real-interest-rate movements (which influence both corporate travel budgets and consumer financing for vacations), and the ongoing shift toward loyalty-driven booking channels that reward brands with higher direct-booking shares.

For a deeper quantitative dive into IHG’s valuation assumptions and scenario analysis, you may find the data tools on ValueRay useful for independent research.

IHG Stock Overview

Market Cap in USD	18,266m
Sub-Industry	Hotels, Resorts & Cruise Lines
IPO / Inception	2003-04-10

IHG Stock Ratings

Growth Rating	59.6%
Fundamental	74.1%
Dividend Rating	55.4%
Return 12m vs S&P 500	-7.11%
Analyst Rating	3.75 of 5

IHG Dividends

Dividend Yield 12m	2.38%
Yield on Cost 5y	5.81%
Annual Growth 5y	16.31%
Payout Consistency	67.5%
Payout Ratio	44.3%

IHG Growth Ratios

Growth Correlation 3m	50.3%
Growth Correlation 12m	-9.5%
Growth Correlation 5y	83.1%
CAGR 5y	34.99%
CAGR/Max DD 3y (Calmar Ratio)	1.21
CAGR/Mean DD 3y (Pain Ratio)	5.78
Sharpe Ratio 12m	0.72
Alpha	-5.68
Beta	0.789
Volatility	22.78%
Current Volume	104.1k
Average Volume 20d	169.5k
Stop Loss	116.7 (-3%)
Signal	-0.54

Piotroski VR‑10 (Strict, 0-10) 9.0

Net Income (1.39b TTM) > 0 and > 6% of Revenue (6% = 564.7m TTM)

FCFTA 0.32 (>2.0%) and ΔFCFTA 7.37pp (YES ≥ +1.0pp, WARN ≥ +0.5pp)

NWC/Revenue -4.69% (prev -1.06%; Δ -3.63pp) (YES ≤20% & Δ≤-1pp; WARN ≤25% & Δ≤0 oder ≤40% & Δ≤-3pp)

CFO/TA 0.33 (>3.0%) and CFO 1.62b > Net Income 1.39b (YES >=105%, WARN >=100%)

Net Debt (3.49b) to EBITDA (2.41b) ratio: 1.45 <= 3.0 (WARN <= 3.5)

Current Ratio 0.79 (target 1.5–3.0; WARN 1.2–<1.5 or >3.0–5.0; CFO/TA gate active)

Outstanding Shares last Quarter (157.8m) change vs 12m ago -4.94% (target <= -2.0% for YES)

Gross Margin 52.95% (prev 46.55%; Δ 6.40pp) >=18% & Δ>=+0.5pp (WARN >=15% & Δ>=0)

Asset Turnover 193.0% (prev 119.6%; Δ 73.45pp) >=50% & Δ>=+2pp (WARN >=35% & Δ>=0)

Interest Coverage Ratio 9.28 (EBITDA TTM 2.41b / Interest Expense TTM 240.3m) >= 6 (WARN >= 3)

Altman Z'' 1.97

(A) -0.09 = (Total Current Assets 1.66b - Total Current Liabilities 2.10b) / Total Assets 4.94b

(B) -0.05 = Retained Earnings (Balance) -224.0m / Total Assets 4.94b

(D) -0.35 = Book Value of Equity -2.64b / Total Liabilities 7.58b

Total Rating: 1.97 = (6.56 * A) + (3.26 * B) + (6.72 * C) + (1.05 * D)

ValueRay F-Score (Strict, 0-100) 74.06

1. Piotroski 9.0pt = 4.0

2. FCF Yield 7.17% = 3.59

3. FCF Margin 16.57% = 4.14

4. Debt/Equity -1.55 = -2.50

5. Debt/Ebitda 1.45 = 1.05

6. ROIC - WACC (= 151.0)% = 12.50

7. RoE -61.12% = -2.50

8. Rev. Trend 69.32% = 5.20

9. EPS Trend -28.31% = -1.42

What is the price of IHG shares?

As of October 21, 2025, the stock is trading at USD 120.32 with a total of 104,126 shares traded.
Over the past week, the price has changed by -1.82%, over one month by +1.73%, over three months by +3.68% and over the past year by +8.14%.

Is InterContinental Hotels a good stock to buy?

Partly, yes. Based on ValueRay´s Fundamental Analyses, InterContinental Hotels (NYSE:IHG) is currently (October 2025) ok to buy, but has to be watched. It has a ValueRay Fundamental Rating of 74.06 and therefor a somewhat positive outlook according to the companies health.
Based on momentum, paid dividends and discounted-cash-flow analyses, the fair value of IHG is around 137.74 USD . This means that IHG is currently undervalued and has a potential upside of +14.48% (Margin of Safety).

Is IHG a buy, sell or hold?

InterContinental Hotels has received a consensus analysts rating of 3.75. Therefor, it is recommend to hold IHG.

Strong Buy: 1
Buy: 1
Hold: 2
Sell: 0
Strong Sell: 0

What are the forecasts/targets for the IHG price?

Issuer	Target	Up/Down from current
Wallstreet Target Price	120.7	0.3%
Analysts Target Price	120.7	0.3%
ValueRay Target Price	152.3	26.6%

Last update: 2025-10-20 03:54

IHG Fundamental Data Overview

Market Cap USD = 18.27b (18.27b USD * 1.0 USD.USD)
P/E Trailing = 25.5953
P/E Forward = 21.2766
P/S = 3.5675
P/EG = 0.9501
Beta = 0.789
Revenue TTM = 9.41b USD
EBIT TTM = 2.23b USD
EBITDA TTM = 2.41b USD
Long Term Debt = 3.25b USD (from longTermDebt, last quarter)
Short Term Debt = 474.0m USD (from shortTermDebt, last quarter)
Debt = 4.10b USD (from shortLongTermDebtTotal, last quarter)
Net Debt = 3.49b USD (from netDebt column, last quarter)
Enterprise Value = 21.75b USD (18.27b + Debt 4.10b - CCE 619.0m)
Interest Coverage Ratio = 9.28 (Ebit TTM 2.23b / Interest Expense TTM 240.3m)
FCF Yield = 7.17% (FCF TTM 1.56b / Enterprise Value 21.75b)
FCF Margin = 16.57% (FCF TTM 1.56b / Revenue TTM 9.41b)
Net Margin = 14.79% (Net Income TTM 1.39b / Revenue TTM 9.41b)
Gross Margin = 52.95% ((Revenue TTM 9.41b - Cost of Revenue TTM 4.43b) / Revenue TTM)
Gross Margin QoQ = 25.49% (prev 93.43%)
Tobins Q-Ratio = 4.40 (Enterprise Value 21.75b / Total Assets 4.94b)
Interest Expense / Debt = 2.24% (Interest Expense 91.8m / Debt 4.10b)
Taxrate = 25.91% (165.4m / 638.4m)
NOPAT = 1.65b (EBIT 2.23b * (1 - 25.91%))
Current Ratio = 0.79 (Total Current Assets 1.66b / Total Current Liabilities 2.10b)
Debt / Equity = -1.55 (negative equity) (Debt 4.10b / totalStockholderEquity, last quarter -2.64b)
Debt / EBITDA = 1.45 (Net Debt 3.49b / EBITDA 2.41b)
Debt / FCF = 2.24 (Net Debt 3.49b / FCF TTM 1.56b)
Total Stockholder Equity = -2.28b (last 4 quarters mean from totalStockholderEquity)
RoA = 28.19% (Net Income 1.39b / Total Assets 4.94b)
RoE = -61.12% (negative equity) (Net Income TTM 1.39b / Total Stockholder Equity -2.28b)
RoCE = 229.6% (EBIT 2.23b / Capital Employed (Equity -2.28b + L.T.Debt 3.25b))
RoIC = 158.6% (NOPAT 1.65b / Invested Capital 1.04b)
WACC = 7.59% (E(18.27b)/V(22.37b) * Re(8.92%) + D(4.10b)/V(22.37b) * Rd(2.24%) * (1-Tc(0.26)))
Discount Rate = 8.92% (= CAPM, Blume Beta Adj.)
Shares Correlation 3-Years: -100.0 | Cagr: -2.50%
[DCF Debug] Terminal Value 78.65% ; FCFE base≈1.40b ; Y1≈1.73b ; Y5≈2.95b
Fair Price DCF = 281.6 (DCF Value 42.58b / Shares Outstanding 151.2m; 5y FCF grow 25.0% → 3.0% )
EPS Correlation: -28.31 | EPS CAGR: -68.61% | SUE: -3.93 | # QB: 0
Revenue Correlation: 69.32 | Revenue CAGR: 25.01% | SUE: N/A | # QB: 0

Additional Sources for IHG Stock

News: Wall Street Journal | Benzinga | Yahoo Finance
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Fund Manager Positions: Dataroma | Stockcircle