InterContinental Hotels Group PLC ADR (IHG) Fair Value & Analysis

Consumer Cyclical · US · Market cap $25.4B · ISIN US45857P8068

What is InterContinental Hotels Group PLC ADR really worth?

InterContinental Hotels Group PLC ADR IHG · US

Price$160.77

Fair Value$85.18

Upside−47.0%

Quality73/100

A solid business, but trading 89% above our fair value of $85.18.

Strengths

✓Healthy Growth (revenue 5y +16.7 %/yr)

✓Solidly profitable · 14.6% net margin

✓Negative equity (buybacks among others) · generates free cash flow

✓Wide moat 69/100

Risks

!Trails peers (5/14)

!Evidence only medium, so the estimate is less certain

!Weak on future: 14 out of 100

!Weak on dividend: 23 out of 100

For context

·1.15% dividend yield

Evidence: Medium Range $50.25 – $112.36

Fair value as of: Aug 13, 2026

From 21 valuation models · updated 22 days ago

Share price +2.3% over the past month.

What runs behind every stock

26 valuation models 8 families, DCF to NCAV 37 quality factors margins, balance sheet, cashflow, debt 6 AI factors moat, what no ratio measures 2,000+ data points verified, per stock, median

69 individual criteria per stock, every one traceable See the method →

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 ($50.25 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 Aug 13, 2026.

How to read this chart

60‑month range $43.95 – $174.13 · fair‑value band $50.25 – $112.36 · the $160.77 price screens above the $85.18 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 Aug 13, 2026.

Full chart & analysis →

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Analysis

InterContinental Hotels Group PLC ADR (IHG) currently trades at $160.77, while our model-based Fair Value estimate is $85.18, implying the stock looks roughly 88.8% overvalued today. The Quality Score stands at 73/100 (solid quality), in the Consumer Cyclical sector. 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 $160.77 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.

Over the trailing twelve months, InterContinental Hotels Group PLC ADR 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 33.1. Fundamentals as of Aug 13, 2026

Our scenario range runs from $50.25 (bear case) to $112.36 (bull case); at $160.77, 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 7% below its 52-week high and 48% above its 52-week low, currently above its 200-day average. For context, the median of 10 Consumer Cyclical peers we cover trades at −61% fair-value upside, at −47%, IHG screens cheaper than that median.

Fair Value models

This estimate rests on fiscal year 2025 figures, and about 8 months have passed since. In that time the company retained roughly $2.05 per share, which is 2.4 % of the fair value. The fair value deliberately does not add this in: the models value reported figures, not a projection.

Each model estimates fair value its own way; the Fair Value above is the evidence-weighted, family-balanced 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. Every input is real reported data, nothing guessed.

Model 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

Highest evidence

FCF DCF $50.15 $89.81 $151.36 78

Growth DCF $51.11 $85.83 $136.20 77

Owner Earnings $50.61 $90.55 $152.52 74

All 21 models by family

DCF Models

FCF DCF $50.15 $89.81 $151.36 78

Owner Earnings $50.61 $90.55 $152.52 74

5Y Revenue Exit $24.27 $43.72 $67.91 71

5Y EBITDA Exit $53.58 $99.24 $152.81 73

5Y P/E Exit $55.20 $102.31 $152.20 69

10Y Revenue Exit $32.02 $52.17 $78.37 66

10Y EBITDA Exit $51.71 $90.98 $143.92 67

10Y P/E Exit $52.75 $93.13 $143.45 62

Earnings-Based

Graham-Dodd $34.74 $114.70 $153.41 64

Lynch FV $25.86 $36.94 $48.02 61

PEG = 1.0 $25.86 $36.94 $48.02 57

EPV $39.20 $48.64 $56.91 74

Multiples

P/E Multiple $84.30 $112.40 $140.50 63

P/S Multiple $31.48 $41.97 $52.46 58

EV/EBIT $91.52 $127.86 $164.20 66

EV/EBITDA $64.04 $91.22 $118.40 67

EV/Revenue $11.89 $24.49 $37.08 51

Growth DCF

Growth DCF $51.11 $85.83 $136.20 77

Rev-Margin DCF $24.27 $44.38 $68.14 71

Economic Profit

ROIC Compounder $39.20 $48.64 $56.91 72

Growth Earnings

Growth-Adj P/E $70.80 $101.14 $131.48 67

Widest divergence: Growth Earnings ($101.14) versus Earnings-Based ($36.94). Highest evidence: FCF DCF (78).

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Key figures & financial health

P/E ratio 33.1

P/S ratio 4.83 P/E × margin

EPS (TTM) $4.86 price ÷ EPS = P/E 33.1

Dividend yield 1.1% payout 38.0%

Net margin 14.6% FY2025

Return on assets (EBIT) 18.4% avg 5y

More key figures

Profitability

Operating margin 22.2% TTM

Growth

Revenue (TTM) $5.2B TTM

Revenue growth (YoY) +2.7% 3y avg +10.1%

EPS growth (YoY) +7.7%

Balance sheet & cash flow

Free cash flow $870M FY2025

Net debt $3.5B FY2025 · ≈ 4.0 yrs of FCF

Figures from reported company fundamentals · as of Aug 13, 2026. TTM = trailing twelve months.

Quality Score breakdown

Overall quality 73/100

Of which business quality 71 · Market factors (momentum, volatility) 67

Profitability 69

Margins and returns on capital today

Quality Growth 44

Are margins and returns improving?

Cashflow 71

Earnings quality: real cash, not paper profit

Fin. Strength 70

Balance sheet, leverage, solvency risk

Investment 79

Disciplined investing over empire-building

Low Volatility 68

Calm price path (market factor)

Momentum 62

Price trend over the last 3–12 months (market factor)

52W Momentum 76

Distance to the 52-week high (market factor)

Net Issuance 100

Buybacks instead of dilution

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.

All values are scores from 0 to 100 (100 = best against fixed, research-based bands), not percentages. The three market factors (momentum, 52-week proximity, low volatility) are displayed but carry zero weight in the headline number: market sentiment is not a business property.

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 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.

Growth Quality 95/100

Revenue growth appears healthy and is supported by profitability and cash-flow quality.

Latest Revenue (FY 2025)

$5.2B

Latest YoY

+5.4%

Avg. revenue growth/yr (3Y) ⓘ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.

+10.1%

Avg. revenue growth/yr (5Y) ⓘ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.

+16.7%

Avg. revenue growth/yr (25Y) ⓘ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.

−0.2%

Value creation/yr (5Y) ⓘEarnings growth per share (CAGR 5 years, adjusted) plus dividend yield: value created per share and year.

+22.7% (21.6 + 1.1)

Revenue +15.6%/yr

FY21 $2.9B

FY22 $3.9B

FY23 $3.7B

FY24 $4.9B

FY25 $5.2B

Net income +29.9%/yr

FY21 $266M

FY22 $375M

FY23 $750M

FY24 $628M

FY25 $758M

Character of growth · EPS growth decomposed (2014-2025) +2.2 % p.a.

Revenue per share +12.9 %

of which total revenue +11.1 % · buybacks/dilution +1.6 %

EBIT margin −8.5 %

Tax rate −0.9 %

Residual (interest, one-offs) −0.1 %

Annual growth per factor. These are factors, not summands: multiplied they give the EPS growth rate, added they do not quite. Start and end points are 3-year averages (details on hover).

IHG screens 89% overvalued. Compare with Marriott International, Inc →

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InterContinental Hotels Group PLC ADR · Fair Value
$85.18 −89%Fair Value
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<a href="https://www.fairvalue-calculator.com/stock/IHG" target="_blank" rel="nofollow noopener" style="display:inline-flex;align-items:center;gap:12px;box-sizing:border-box;font-family:system-ui,-apple-system,Segoe UI,Roboto,sans-serif;text-decoration:none;background:#0f1814;color:#eaf2ed;border:1px solid #2a3a30;border-radius:12px;padding:12px 16px;max-width:360px"><span style="line-height:1.35"><span style="font-size:12px;color:#9fb0a8">InterContinental Hotels Group PLC ADR · Fair Value</span><br><b style="font-size:20px">$85.18</b> <span style="color:#e0816f;font-weight:700;font-size:14px">−89%</span></span><span style="font-size:11px;color:#7BB290;font-weight:700;margin-left:auto;text-align:right;line-height:1.3">Fair&nbsp;Value<br>Calculator&nbsp;→</span></a>

Cite: Fair Value Calculator (2026). "InterContinental Hotels Group PLC ADR Fair Value". https://www.fairvalue-calculator.com/stock/IHG

Peer Group

Lodging · 165 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.

Quality Score 73 · Top 25%

Fair Value upside −47% · Below median

Return on assets 15% · Top 25%

Net margin (TTM) 15% · Above median

Operating margin (TTM) 22% · Above median

Revenue growth 3% · Below median

Dividend yield (TTM) 1.1% · Below median

Valuation Multiples vs Lodging median · lower = cheaper

P/E (TTM) 33.1× · Pricier than median

P/S (TTM) 4.89× · Pricier than 75% of peers

P/FCF 29.2× · Pricier than 75% of peers

EV/EBITDA 22.5× · Pricier than 75% of peers

PEG 1.61× · Pricier than median

Strength profile in five axes (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.

This stock

Sector peers

VALUE0 · sector 0

FUTURE14 · sector 24

PAST0 · sector 12

HEALTH100 · sector 91

DIVIDEND23 · sector 26

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.

None of the checked exposures detected

Similar stocks

10 more Lodging stocks, each showing price versus our Fair Value estimate (as of Aug 13, 2026).

Stock	Price	Fair Value	vs Fair Value
Marriott International, Inc MAR	$341.76	$132.35	−61%
Hilton Worldwide Holdings HLT	$314.35	$122.07	−61%
Hyatt Hotels Corporation H	$178.37	$46.78	−74%
H World Group HTHT	$41.25	$47.78	+16%
Accor SA AC	€46.52	€36.87	−21%
The Indian Hotels Company INDHOTEL	₹723.35	₹253.67	−65%
Wyndham Hotels & Resorts, Inc WH	$74.02	$23.55	−68%
Hanjin Kal, 180640	139,100 KRW	36,890 KRW	−73%
Choice Hotels International, Inc CHH	$105.54	$61.72	−42%
Jabal Omar Development Company 4250	18.88 SAR	11.64 SAR	−38%

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Frequently asked questions

Is InterContinental Hotels Group PLC ADR (IHG) overvalued or undervalued?

As of Aug 13, 2026, our model estimates a fair value of $85.18 versus a price of $160.77, about −47% upside (overvalued).

What is the fair value of IHG?

Our model-based fair value for InterContinental Hotels Group PLC ADR is $85.18 (as of Aug 13, 2026), built from audited fundamentals. The current price: $160.77.

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 revenue of InterContinental Hotels Group PLC ADR (IHG)?

InterContinental Hotels Group PLC ADR reported trailing-twelve-month revenue of about $5.2B (latest available figure, as of Aug 13, 2026).

What is the net profit margin of IHG?

The net profit margin of InterContinental Hotels Group PLC ADR is about 14.6%, meaning it keeps roughly 14.6% of revenue as net income. Based on the latest reported figures.

Does InterContinental Hotels Group PLC ADR pay a dividend?

InterContinental Hotels Group PLC ADR currently shows a dividend yield of about 1.15% relative to its recent price (as of Aug 13, 2026).

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