InterContinental Hotels Group PLC (IHG) Financial Ratios
26 years of historical data (2000–2025) · Consumer Cyclical · Travel Lodging
EV/EBITDA
↓
18.89
+6% vs avg
5yr avg: 17.85
30Y Low5.2·High51.1
P/FCF
↑
25.18
+8% vs avg
5yr avg: 23.21
30Y Low3.9·High194.3
P/B Ratio
N/A
—
5yr avg: N/A
30Y Low1.1·High45.5
ROE
N/A
—
5yr avg: N/A
30Y Low1%·High383%
Debt/EBITDA
↓
3.44
↓-4% vs avg
5yr avg: 3.57
30Y Low1.0·High15.5
Percentile shows where the current value sits in 30-year historical distribution. Sparklines show 5-year trend.
IHG Valuation Multiples
Price-based multiples — how expensive the stock is relative to earnings, sales, book value, and cash flow
InterContinental Hotels Group PLC trades at 29.9x earnings, roughly in line with its 5-year average of 31.1x, sitting at the 77th percentile of its historical range. Compared to the Consumer Cyclical sector median P/E of 19.6x, the stock trades at a premium of 53%. On a free-cash-flow basis, the stock trades at 25.2x P/FCF, 8% above the 5-year average of 23.2x.
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Market Cap | $21.9B | $21.9B | $20.4B | $15.5B | $10.7B | $12.0B | $11.9B | $12.6B | $10.5B | $12.3B | $9.5B |
| Enterprise Value | $25.4B | $25.4B | $23.1B | $17.8B | $12.6B | $13.8B | $14.4B | $15.3B | $12.0B | $14.2B | $11.0B |
| P/E Ratio → | 29.89 | 28.92 | 32.45 | 20.68 | 28.60 | 44.97 | — | 32.86 | 29.93 | 22.82 | 22.88 |
| P/S Ratio | 4.22 | 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 | 25.18 | 25.22 | 31.54 | 19.11 | 19.62 | 20.55 | 194.29 | 26.66 | 20.63 | 34.13 | 17.57 |
| P/OCF | 24.39 | 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
IHG EV Ratios
Enterprise-value multiples — capital-structure-neutral measures of total business value
InterContinental Hotels Group PLC's enterprise value stands at 18.9x EBITDA, 6% above its 5-year average of 17.8x. The Consumer Cyclical sector median is 11.4x, placing the stock at a 66% premium on an enterprise-value basis.
| 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 | 18.89 | 18.92 | 19.44 | 14.66 | 16.09 | 20.14 | 42.86 | 19.08 | 17.40 | 17.58 | 13.66 |
| EV / EBIT | 21.20 | 21.14 | 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 |
IHG Profitability
Margins and return-on-capital ratios measuring operating efficiency
InterContinental Hotels Group PLC earns an operating margin of 23.1%, significantly above the Consumer Cyclical sector average of 2.9%. Operating margins have compressed from 28.6% to 23.1% over the past 3 years, signaling potential cost pressures or competitive headwinds. ROIC of 159.6% represents excellent returns on invested capital versus a sector median of 5.8%.
Margins
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% |
Return on Capital
| 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% |
IHG Leverage & Debt
Solvency and debt-coverage ratios — lower is generally safer
InterContinental Hotels Group PLC carries a Debt/EBITDA ratio of 3.4x, which is moderately leveraged (22% below the sector average of 4.4x). Net debt stands at $3.5B ($4.6B total debt minus $1.1B cash).
| 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 | — | — | 5.13 | 11.71 | 4.91 | 3.36 | 1.15 | 5.21 | 5.66 | 9.58 | 7.88 |
IHG Liquidity & Efficiency
Short-term solvency ratios and asset-utilisation metrics
The current ratio of 0.98x is below 1.0, meaning current liabilities exceed current assets — though the company's $1.1B cash position helps mitigate short-term liquidity concerns.
| 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 | — | — | — |
IHG Shareholder Yields
Earnings, FCF, buyback, and dividend yields — total returns to shareholders
InterContinental Hotels Group PLC returns 5.3% to shareholders annually — split between a 1.2% dividend yield and 4.1% buyback yield. The payout ratio of 35.6% is conservative, leaving significant room for dividend growth or reinvestment. The earnings yield of 3.3% (inverse of P/E) provides a useful comparison to bond yields when assessing the stock's relative attractiveness to fixed income.
Dividends
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 | 1.2% | 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% |
Total Shareholder Return Metrics
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Earnings Yield | 3.3% | 3.5% | 3.1% | 4.8% | 3.5% | 2.2% | — | 3.0% | 3.3% | 4.4% | 4.4% |
| FCF Yield | 4.0% | 4.0% | 3.2% | 5.2% | 5.1% | 4.9% | 0.5% | 3.8% | 4.8% | 2.9% | 5.7% |
| Buyback Yield | 4.1% | 4.1% | 3.9% | 5.1% | 4.5% | 0.0% | 0.0% | 0.0% | 0.0% | 0.0% | 0.1% |
| Total Shareholder Yield | 5.3% | 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 |
Peer Comparison
Compare IHG with 10 similar companies in its peer group
| Company | Market Cap | P/E | EV/EBITDA | P/FCF | Gross Margin | Op Margin | ROE | ROIC | Debt/EBITDA |
|---|---|---|---|---|---|---|---|---|---|
 IHGYou | $22B | 29.9 | 18.9 | 25.2 | 32.0% | 23.1% | — | 159.6% | 3.4 |
 MAR | $95B | 37.8 | 25.2 | 36.5 | 21.3% | 15.8% | — | 25.0% | 3.8 |
 HLT | $73B | 52.5 | 30.6 | 36.1 | 41.1% | 22.4% | — | 24.7% | 5.5 |
 H | $16B | -313.6 | 22.8 | 101.7 | 11.2% | 7.8% | -1.4% | 5.8% | 5.4 |
 WH | $6B | 33.7 | 19.8 | 19.5 | 58.9% | 28.4% | 34.5% | 9.4% | 6.5 |
 CHH | $5B | 13.3 | 12.2 | 38.6 | 40.9% | 28.4% | 544.2% | 16.7% | 3.8 |
 RHP | $7B | 29.4 | 14.1 | 30.1 | 9.9% | 18.9% | 22.7% | 8.2% | 5.6 |
 SHO | $2B | 242.3 | 13.2 | 24.7 | 4.7% | 7.8% | 1.2% | 2.0% | 4.4 |
 PK | $2B | -7.9 | 11.2 | 22.1 | 2.0% | 8.9% | -8.5% | 2.2% | 7.6 |
 HST | $15B | 19.7 | 12.2 | 17.4 | 2.6% | 13.6% | 11.3% | 5.3% | 3.5 |
 DRH | $2B | 24.3 | 12.0 | 13.4 | 55.2% | 14.4% | 6.6% | 4.6% | 4.3 |
| Consumer Cyclical Median | — | 19.6 | 11.4 | 15.0 | 36.9% | 2.9% | 5.6% | 5.8% | 4.4 |
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Start ComparisonIHG — Frequently Asked Questions
Quick answers to the most common questions about buying IHG stock.
What is InterContinental Hotels Group PLC's P/E ratio?
InterContinental Hotels Group PLC's current P/E ratio is 29.9x. The historical average is 26.6x. This places it at the 77th percentile of its historical range.
What is InterContinental Hotels Group PLC's EV/EBITDA?
InterContinental Hotels Group PLC's current EV/EBITDA is 18.9x. This enterprise value multiple compares the company's total value (equity + debt - cash) to its EBITDA. The historical average is 15.9x.
Is IHG stock overvalued?
Based on historical data, InterContinental Hotels Group PLC is trading at a P/E of 29.9x. This is at the 77th percentile of its historical P/E range. Compare with industry peers and growth rates for a complete picture.
What is InterContinental Hotels Group PLC's dividend yield?
InterContinental Hotels Group PLC's current dividend yield is 1.19% with a payout ratio of 35.6%.
What are InterContinental Hotels Group PLC's profit margins?
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.
How much debt does InterContinental Hotels Group PLC have?
InterContinental Hotels Group PLC's Debt/EBITDA ratio is 3.4x, indicating high leverage. A ratio between 2-4x is manageable but warrants monitoring.