# Intercontinental Hotels Group American (IHG) fundamentals

Data as of 2026-09-08. NYSE, United States. Sector: Consumer Cyclical / Hotels, Restaurants & Leisure. Price $159.95, market value $23.5 billion.

## Valuation
- **P/E (trailing): 34.0×** (5-yr avg 29.4×, 3-yr avg 26.5×). Intercontinental Hotels Group American trades at 34.0× trailing earnings, close to its own five-year average of 29.4×. The Consumer Cyclical median in the September 2026 study was 19.5×. Forward P/E is 23.3×, lower than trailing, so analysts expect earnings to grow.
- **PEG: 0.88**. A PEG of 0.88 means the P/E is low relative to expected earnings growth: the market is not paying much for that growth.
- **Price / sales: 4.5×**. Each dollar of revenue is priced at 4.5×.
- **EV / EBITDA: 21.0×**. Enterprise value is 21.0× operating earnings before depreciation, the multiple that ignores how the company is financed; above 20× is demanding.
- **Free-cash-flow yield: 3.7%** (5-yr avg 5.0%). Free cash flow equals 3.7% of the market value, below its five-year average of 5.0%, so the shares are pricier on cash than usual.
- **Earnings yield: 2.9%**. The inverse of the P/E: 2.9% of the price is earned each year.

## Profitability
- **Operating margin: 23.1%**. 23.1% of revenue is left after running the business, a healthy level in most sectors.
- **Net margin: 14.6%**. 14.6% of each dollar of sales reaches the bottom line.
- **Return on equity: -27.7%**. Return on equity is negative because earnings are negative.
- **Return on invested capital: 281.7%**. Return on all capital, debt included, is 281.7%: comfortably above what that capital costs.
- **Return on assets: 14.2%**. Each dollar of assets produces 14.2% of profit.

## Growth
- **Revenue growth (1 yr): 5.4%** (3-yr 10.1%/yr, 5-yr 16.7%/yr). Revenue grew 5.4% over the last year, against 16.7% a year compounded over five years: growth is slowing.
- **EPS growth (1 yr): 26.5%** (3-yr 33.2%/yr). Earnings per share rose 26.5%, faster than revenue, so margins expanded or the share count shrank.
- **Free-cash-flow growth (3 yr): 13.7%/yr**. Free cash flow has compounded at 13.7% a year over three years, lagging earnings: check whether profits are turning into cash.

## Financial health
- **Net debt / EBITDA: 2.4×**. It would take 2.4 years of operating earnings to repay net borrowings, within the comfortable range.
- **Altman Z-score: 2.74**. A Z-score of 2.74 is in the grey zone; not distressed, not clearly safe.
- **Piotroski F-score: 5/9**. 5 of 9 checks pass: mixed.

## Dividends
- **Dividend yield: 1.19%** ($1.90 per share, trailing). Intercontinental Hotels Group American yields 1.19%, a modest yield more typical of a growth-oriented payer.
- **Payout ratio: 36%** (31% of free cash flow). 36% of earnings goes out as dividends, leaving room to keep raising it.
- **Consecutive years of increases: 4**. 4 straight years of increases.
- **Dividend growth (5 yr): 27.9%/yr** (1-yr 82.8%). The dividend has compounded at 27.9% a year over five years, doubling roughly every 3 years at that pace.

## Analyst view
- **Analyst consensus: hold** (6 analysts). 6 analysts cover Intercontinental Hotels Group American; the consensus is hold, with an average price target of $146.83 (-8% from the current price). Analyst opinion is shown for context; it is not part of the Fundamental Score.

## Price and momentum
- **Total return (1 yr): 32.2%** (YTD 14.6%, 3-mo -1.4%). The shares are up 32.2% over twelve months including dividends.
- **From 52-week high: -9.1%** (36.4% above the low). Trading 9% below its 52-week high.
- **200-day average: above**. The price sits above its 200-day moving average, the usual definition of an uptrend.
- **RSI (14-day): 49**. An RSI of 49 is neutral.
- **Beta (1 yr): 0.69** (volatility 25%). Beta of 0.69 against the S&P 500: the shares move much less than the market.

Live score and charts: https://foliofundamentals.com/analyzer?s=IHG · Page: https://foliofundamentals.com/stocks/ihg

Not investment advice.