Based on the provided data and recent analyst coverage, here's a concise analysis of IHG's valuation:
IHG's current P/E ratio of 20.67x represents a significant improvement from 28.31x in 2022, suggesting better earnings efficiency. The EV/EBITDA ratio remains stable at 15.89x, indicating consistent operational performance.
Net margin has substantially improved from 20.4% in 2022 to 34.66% in 2023, demonstrating strong profitability growth. However, the current ratio has declined from 1.09 to 0.97, showing slightly tightened liquidity.
Technical indicators show bearish signals with RSI at 31.77 and MACD histogram turning negative (-1.38), suggesting near-term selling pressure. The stock is trading below its 20-day SMA of 133.15.
Recent analyst coverage from Citi initiated with a Sell rating, citing challenges in net unit growth recovery and U.S. market supply pressures. This contrasts with Barclays maintaining a Buy rating, creating mixed sentiment.
Given the premium valuation metrics, declining liquidity ratio, and technical weakness, IHG appears moderately overvalued at current levels despite strong profitability improvements.