# InterContinental Hotels Group PLC (IHG.L) fundamentals

Data as of 2026-09-08. LSE, United Kingdom. Sector: Consumer Cyclical / Hotels, Restaurants & Leisure. Price $155.00, market value $22.8 billion.

## Valuation
- **P/E (trailing): 33.0×** (5-yr avg 31.1×, 3-yr avg 28.0×). InterContinental Hotels Group PLC trades at 33.0× trailing earnings, close to its own five-year average of 31.1×. The Consumer Cyclical median in the September 2026 study was 19.5×. Forward P/E is 23.8×, lower than trailing, so analysts expect earnings to grow.
- **PEG: 0.90**. A PEG of 0.90 means the P/E is low relative to expected earnings growth: the market is not paying much for that growth.
- **Price / sales: 2.7×**. Each dollar of revenue is priced at 2.7×.
- **EV / EBITDA: 10.3×**. Enterprise value is 10.3× operating earnings before depreciation, the multiple that ignores how the company is financed.
- **Free-cash-flow yield: 5.9%** (5-yr avg 3.9%). Free cash flow equals 5.9% of the market value, above its five-year average of 3.9%, so the shares are cheaper on cash than they have usually been. Above 5% is generally attractive.
- **Earnings yield: 3.0%**. The inverse of the P/E: 3.0% of the price is earned each year.

## Profitability
- **Gross margin: 27.0%**. InterContinental Hotels Group PLC keeps 27.0% of revenue after the direct cost of what it sells.
- **Operating margin: 27.0%**. 27.0% of revenue is left after running the business, an exceptional level.
- **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: 143.3%**. Return on all capital, debt included, is 143.3%: comfortably above what that capital costs.
- **Return on assets: 21.2%**. Each dollar of assets produces 21.2% of profit.

## Growth
- **Revenue growth (1 yr): 5.4%** (3-yr 10.1%/yr, 5-yr 24.3%/yr). Revenue grew 5.4% over the last year, against 24.3% 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): 20.7%/yr**. Free cash flow has compounded at 20.7% a year over three years, lagging earnings: check whether profits are turning into cash.

## Financial health
- **Net debt / EBITDA: 1.5×**. It would take 1.5 years of operating earnings to repay net borrowings, within the comfortable range.
- **Interest coverage: 6.7×**. Operating profit covers interest 6.7× over, a safe margin.
- **Current ratio: 0.97** (quick 0.97). Current liabilities exceed current assets, so the company depends on ongoing cash generation or refinancing to pay the next year's bills.
- **Altman Z-score: 2.69**. A Z-score of 2.69 is in the grey zone; not distressed, not clearly safe.
- **Piotroski F-score: 6/9**. 6 of 9 checks pass: mixed.

## Dividends
- **Dividend yield: 1.22%** ($1.90 per share, trailing). InterContinental Hotels Group PLC yields 1.22%, a modest yield more typical of a growth-oriented payer.
- **Payout ratio: 36%** (32% 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.
- **Shareholder yield: 7.6%**. Dividends plus net buybacks return 7.6% of the market value a year.

## Analyst view
- **Analyst consensus: buy** (15 analysts). 15 analysts cover InterContinental Hotels Group PLC; the consensus is buy, with an average price target of $163.67 (+6% 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): 31.6%** (YTD 14.3%, 3-mo -1.8%). The shares are up 31.6% over twelve months including dividends.
- **From 52-week high: -11.8%** (33.6% above the low). Trading 12% 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): 0.91** (volatility 25%). Beta of 0.91 against the FTSE All-Share: the shares move roughly with the market.

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

Not investment advice.