Latest Ratios: P/E Ratio 32.1x · EV/EBITDA 19.8x · ROE N/A. (2000–2025 historical series)
Price-based multiples — how expensive the stock is relative to earnings, sales, book value, and cash flow
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Market Cap | $23.1B | $21.9B | $20.4B | $15.5B | $10.7B | $12.0B | $11.9B | $12.6B | $10.5B | $12.3B | $9.5B |
| Enterprise Value | $26.6B | $25.4B | $23.1B | $17.8B | $12.6B | $13.8B | $14.4B | $15.3B | $12.0B | $14.2B | $11.0B |
| P/E Ratio → | 32.06 | 28.92 | 32.45 | 20.68 | 28.60 | 44.97 | — | 32.86 | 29.93 | 22.82 | 22.88 |
| P/S Ratio | 4.45 | 4.23 | 4.14 | 4.16 | 2.76 | 4.13 | 4.95 | 2.73 | 2.42 | 3.02 | 5.53 |
| P/B Ratio | — | — | — | — | — | — | — | — | — | — | — |
| P/FCF | 26.51 | 25.22 | 31.54 | 19.11 | 19.62 | 20.55 | 194.29 | 26.66 | 20.63 | 34.13 | 17.57 |
| P/OCF | 25.69 | 24.43 | 28.14 | 17.36 | 16.62 | 18.87 | 86.51 | 19.35 | 15.74 | 19.43 | 12.62 |
P/E links to full P/E history page with 30-year chart
Enterprise-value multiples — capital-structure-neutral measures of total business value
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| EV / Revenue | — | 4.90 | 4.68 | 4.78 | 3.23 | 4.75 | 6.03 | 3.30 | 2.77 | 3.48 | 6.41 |
| EV / EBITDA | 19.76 | 18.92 | 19.44 | 14.66 | 16.09 | 20.14 | 42.86 | 19.08 | 17.40 | 17.58 | 13.66 |
| EV / EBIT | 22.17 | 23.68 | 20.96 | 15.85 | 19.03 | 27.63 | — | 23.23 | 20.81 | 19.05 | 15.31 |
| EV / FCF | — | 29.23 | 35.69 | 21.98 | 23.00 | 23.65 | 236.77 | 32.21 | 23.67 | 39.26 | 20.36 |
Margins and return-on-capital ratios measuring operating efficiency
Full margin charts and quarterly trend are on the Earnings History page
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Gross Margin | 32.0% | 32.0% | 29.6% | 52.0% | 28.0% | 30.7% | 22.4% | 26.9% | 24.9% | 27.6% | 66.2% |
| Operating Margin | 23.1% | 23.1% | 21.1% | 28.6% | 16.1% | 17.0% | 6.9% | 13.6% | 13.1% | 17.9% | 39.5% |
| Net Profit Margin | 14.6% | 14.6% | 12.8% | 20.1% | 9.6% | 9.2% | -10.9% | 8.3% | 8.1% | 13.3% | 24.1% |
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| ROE | — | — | — | — | — | — | — | — | — | — | — |
| ROA | 15.0% | 15.0% | 13.1% | 16.6% | 8.4% | 5.5% | -5.8% | 10.0% | 10.4% | 18.2% | 12.4% |
| ROIC | 159.6% | 159.6% | 207.6% | 258.3% | 162.7% | 68.5% | 13.0% | 57.9% | 83.4% | 84.2% | 63.8% |
| ROCE | 39.5% | 39.5% | 38.3% | 40.3% | 21.8% | 15.8% | 5.7% | 25.3% | 27.5% | 41.3% | 32.3% |
Solvency and debt-coverage ratios — lower is generally safer
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Debt / Equity | — | — | — | — | — | — | — | — | — | — | — |
| Debt / EBITDA | 3.44 | 3.44 | 3.11 | 2.95 | 3.61 | 4.76 | 12.51 | 3.53 | 3.25 | 2.50 | 2.13 |
| Net Debt / Equity | — | — | — | — | — | — | — | — | — | — | — |
| Net Debt / EBITDA | 2.60 | 2.60 | 2.26 | 1.91 | 2.36 | 2.64 | 7.69 | 3.29 | 2.24 | 2.30 | 1.87 |
| Debt / FCF | — | 4.01 | 4.15 | 2.87 | 3.38 | 3.11 | 42.48 | 5.55 | 3.04 | 5.13 | 2.79 |
| Interest Coverage | 5.30 | 5.30 | 5.42 | 12.36 | 5.16 | 3.40 | -0.98 | 5.43 | 5.78 | 9.79 | 8.35 |
Short-term solvency ratios and asset-utilisation metrics
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Current Ratio | 0.98 | 0.98 | 0.97 | 0.97 | 1.09 | 1.27 | 1.20 | 0.67 | 1.00 | 0.67 | 0.69 |
| Quick Ratio | 0.97 | 0.97 | 0.97 | 0.97 | 1.08 | 1.27 | 1.20 | 0.67 | 1.00 | 0.67 | 0.68 |
| Cash Ratio | 0.54 | 0.54 | 0.53 | 0.58 | 0.63 | 0.89 | 0.87 | 0.14 | 0.51 | 0.14 | 0.20 |
| Asset Turnover | — | 0.97 | 1.04 | 0.77 | 0.92 | 0.62 | 0.48 | 1.16 | 1.16 | 1.35 | 0.59 |
| Inventory Turnover | 706.20 | 706.20 | 867.00 | 357.80 | 700.50 | 503.50 | 371.60 | 563.83 | 651.20 | 983.33 | 193.33 |
| Days Sales Outstanding | — | 61.90 | 55.75 | 60.21 | 49.14 | 53.86 | 50.92 | 45.36 | — | — | — |
Earnings, FCF, buyback, and dividend yields — total returns to shareholders
Full dividend history and growth charts are on the Dividend History page
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Dividend Yield | 1.1% | 1.2% | 1.3% | 1.6% | 2.2% | — | — | 5.7% | 1.9% | 4.8% | 17.8% |
| Payout Ratio | 35.6% | 35.6% | 41.2% | 32.7% | 62.1% | — | — | 187.3% | 56.7% | 109.8% | 408.9% |
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Earnings Yield | 3.1% | 3.5% | 3.1% | 4.8% | 3.5% | 2.2% | — | 3.0% | 3.3% | 4.4% | 4.4% |
| FCF Yield | 3.8% | 4.0% | 3.2% | 5.2% | 5.1% | 4.9% | 0.5% | 3.8% | 4.8% | 2.9% | 5.7% |
| Buyback Yield | 3.9% | 4.1% | 3.9% | 5.1% | 4.5% | 0.0% | 0.0% | 0.0% | 0.0% | 0.0% | 0.1% |
| Total Shareholder Yield | 5.0% | 5.4% | 5.2% | 6.7% | 6.7% | 0.0% | 0.0% | 5.7% | 1.9% | 4.8% | 18.0% |
| Shares Outstanding | — | $156M | $163M | $170M | $184M | $184M | $182M | $184M | $182M | $184M | $195M |
Includes 30+ ratios · 26 years · Updated daily
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Quick answers to the most common questions about buying IHG stock.
InterContinental Hotels Group PLC's current P/E ratio is 32.1x. The historical average is 26.6x. This places it at the 82th percentile of its historical range.
InterContinental Hotels Group PLC's current EV/EBITDA is 19.8x. This enterprise value multiple compares the company's total value (equity + debt - cash) to its EBITDA. The historical average is 15.9x.
Based on historical data, InterContinental Hotels Group PLC is trading at a P/E of 32.1x. This is at the 82th percentile of its historical P/E range. Compare with industry peers and growth rates for a complete picture.
InterContinental Hotels Group PLC's current dividend yield is 1.11% with a payout ratio of 35.6%.
InterContinental Hotels Group PLC has 32.0% gross margin and 23.1% operating margin. Operating margin above 20% indicates strong pricing power and cost efficiency.
InterContinental Hotels Group PLC's Debt/EBITDA ratio is 3.4x, indicating high leverage. A ratio between 2-4x is manageable but warrants monitoring.
Key Metrics
Top Statement Risk
Negative equity and leverage trajectory
Exceptional ROIC Driven by Asset-Light Model
IHG's ROIC has consistently exceeded 50% over the past ten quarters, peaking at 129.3% in 2023Q2, a level that reflects the extreme capital efficiency of its franchise-heavy business model and suggests a significant competitive moat.
The sustained high ROIC, which is far above the peer average, is a direct result of the asset-light strategy where the corporate entity generates fees with minimal invested capital. This metric is the clearest indicator of the company's true earning power and its ability to compound value for shareholders, provided the fee-based revenue stream remains stable.
Leverage Deepens Amidst Negative Equity
As of 2026Q2, IHG's D/EBITDA stood at 6.18x, a significant increase from 5.42x in 2021Q4, while the current ratio has collapsed to 0.66, indicating a balance sheet that is becoming increasingly strained by debt-funded shareholder returns.
The rising leverage ratio, coupled with a current ratio well below 1.0, suggests that the company's liquidity position is tightening. While interest coverage remains adequate at 7.77x, the trajectory warrants monitoring, as the negative equity position is primarily driven by aggressive buybacks rather than operational losses, which could limit future financial flexibility.
Premium Valuation Reflects Fee-Based Quality
IHG trades at a forward EV/EBITDA of 17.44x, a notable discount to Hilton's 30.36x but a premium to Wyndham's 18.45x, suggesting the market prices its high-margin franchise model as a quality asset but assigns a discount for its midscale concentration and China exposure.
The valuation premium over midscale-focused peers like Wyndham appears justified by IHG's superior ROIC and global scale. However, the significant discount to Hilton indicates that investors may be applying a multiple compression for IHG's greater geographic risk and potentially slower net room growth in a high-rate environment.
Working Capital Swings Obscure Core Efficiency
The cash conversion cycle has been highly volatile, swinging from -309 days in 2024Q4 to 11 days in 2024Q2, driven by erratic changes in accounts payable and receivable that mask the underlying efficiency of the fee-collection model.
This volatility, as noted in prior cash flow analysis, is a function of the timing of franchisee payments and system fund settlements rather than operational inefficiency. The underlying asset turnover ratio, which has improved from 0.30 in 2021Q4 to 0.50 in 2026Q2, is a more reliable indicator of the improving productivity of the company's fee-generating assets.
The Misleading Power of ROIC
The single most commonly misapplied ratio for IHG is its exceptionally high ROIC, which can create a false impression of infinite capital efficiency while obscuring the growing financial risk from its negative equity and rising leverage.
While the ROIC is mathematically correct, it is calculated on a very small, and now negative, equity base. This metric fails to capture the true economic risk profile of the company, which is better assessed by examining the D/EBITDA trend and the sustainability of cash flows relative to the growing debt service obligations. Investors should focus on free cash flow yield and net debt trends instead.