IHG PE Ratio & Valuation,Is IHG Overvalued

IHG Relative Valuation

IHG's fair value is calculated using relative valuation, based on historical P/E and P/S ranges and their premiums/discounts relative to a competitor average, adjusted by weights. If the market price exceeds this fair value range, IHG is overvalued; if below, it's undervalued.

Historical Valuation

InterContinental Hotels Group PLC (IHG) is now in the Fair zone, suggesting that its current forward PE ratio of 25.27 is considered Fairly compared with the five-year average of 23.53. The fair price of InterContinental Hotels Group PLC (IHG) is between 101.54 to 168.27 according to relative valuation methord.

Relative Value

Fair Zone

101.54-168.27

Current Price：138.67

Fair

25.55

17.26

EV/EBITDA

InterContinental Hotels Group PLC. (IHG) has a current EV/EBITDA of 17.26. The 5-year average EV/EBITDA is 15.31. The thresholds are as follows: Strongly Undervalued below 9.21, Undervalued between 9.21 and 12.26, Fairly Valued between 18.35 and 12.26, Overvalued between 18.35 and 21.40, and Strongly Overvalued above 21.40. The current Forward EV/EBITDA of 17.26 falls within the Historic Trend Line -Fairly Valued range.

18.28

EV/EBIT

InterContinental Hotels Group PLC. (IHG) has a current EV/EBIT of 18.28. The 5-year average EV/EBIT is 16.88. The thresholds are as follows: Strongly Undervalued below 8.82, Undervalued between 8.82 and 12.85, Fairly Valued between 20.91 and 12.85, Overvalued between 20.91 and 24.94, and Strongly Overvalued above 24.94. The current Forward EV/EBIT of 18.28 falls within the Historic Trend Line -Fairly Valued range.

8.13

InterContinental Hotels Group PLC. (IHG) has a current PS of 8.13. The 5-year average PS is 6.53. The thresholds are as follows: Strongly Undervalued below 4.29, Undervalued between 4.29 and 5.41, Fairly Valued between 7.66 and 5.41, Overvalued between 7.66 and 8.78, and Strongly Overvalued above 8.78. The current Forward PS of 8.13 falls within the Overvalued range.

20.58

P/OCF

InterContinental Hotels Group PLC. (IHG) has a current P/OCF of 20.58. The 5-year average P/OCF is 18.15. The thresholds are as follows: Strongly Undervalued below 10.93, Undervalued between 10.93 and 14.54, Fairly Valued between 21.76 and 14.54, Overvalued between 21.76 and 25.37, and Strongly Overvalued above 25.37. The current Forward P/OCF of 20.58 falls within the Historic Trend Line -Fairly Valued range.

27.21

P/FCF

InterContinental Hotels Group PLC. (IHG) has a current P/FCF of 27.21. The 5-year average P/FCF is 23.45. The thresholds are as follows: Strongly Undervalued below 10.37, Undervalued between 10.37 and 16.91, Fairly Valued between 29.99 and 16.91, Overvalued between 29.99 and 36.53, and Strongly Overvalued above 36.53. The current Forward P/FCF of 27.21 falls within the Historic Trend Line -Fairly Valued range.

InterContinental Hotels Group PLC (IHG) has a current Price-to-Book (P/B) ratio of -8.19. Compared to its 3-year average P/B ratio of -7.54 , the current P/B ratio is approximately 8.63% higher. Relative to its 5-year average P/B ratio of -7.56, the current P/B ratio is about 8.28% higher. InterContinental Hotels Group PLC (IHG) has a Forward Free Cash Flow (FCF) yield of approximately 4.12%. Compared to its 3-year average FCF yield of 4.87%, the current FCF yield is approximately -15.43% lower. Relative to its 5-year average FCF yield of 4.48% , the current FCF yield is about -8.21% lower.

-8.10

P/B

Median3y

-7.54

Median5y

-7.56

4.12

FCF Yield

Median3y

4.87

Median5y

4.48

Competitors Valuation Multiple

The average P/S ratio for IHG's competitors is 3.44, providing a benchmark for relative valuation. InterContinental Hotels Group PLC Corp (IHG) exhibits a P/S ratio of 8.13, which is 136.46% above the industry average. Given its robust revenue growth of %, this premium appears unsustainable.

P/S

P/E

EV/EBITDA

EV/EBIT

Revenue Growth

Market Cap

Performance Decomposition

Market capitalization of IHG increased by 0.00% over the past 1 year. The primary factor behind the change was an decrease in Unknown from 0.00 to 0.00.

The secondary factor is the Unknown, contributed 0.00%to the performance.

Overall, the performance of IHG in the past 1 year is driven by Unknown.

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Frequently Asked Questions

Is InterContinental Hotels Group PLC (IHG) currently overvalued or undervalued?

What is InterContinental Hotels Group PLC (IHG) fair value?

IHG's fair value is calculated using relative valuation, based on historical P/E and P/S ranges and their premiums/discounts relative to a competitor average , adjusted by weights. The fair price of InterContinental Hotels Group PLC (IHG) is between 101.54 to 168.27 according to relative valuation methord.

How does IHG's valuation metrics compare to the industry average?

What is the current P/B ratio for InterContinental Hotels Group PLC (IHG) as of Dec 15 2025?

As of Dec 15 2025, InterContinental Hotels Group PLC (IHG) has a P/B ratio of -8.19. This indicates that the market values IHG at -8.19 times its book value.

What is the current FCF Yield for InterContinental Hotels Group PLC (IHG) as of Dec 15 2025?

As of Dec 15 2025, InterContinental Hotels Group PLC (IHG) has a FCF Yield of 4.12%. This means that for every dollar of InterContinental Hotels Group PLC’s market capitalization, the company generates 4.12 cents in free cash flow.

What is the current Forward P/E ratio for InterContinental Hotels Group PLC (IHG) as of Dec 15 2025?

As of Dec 15 2025, InterContinental Hotels Group PLC (IHG) has a Forward P/E ratio of 25.27. This means the market is willing to pay $25.27 for every dollar of InterContinental Hotels Group PLC’s expected earnings over the next 12 months.

What is the current Forward P/S ratio for InterContinental Hotels Group PLC (IHG) as of Dec 15 2025?

As of Dec 15 2025, InterContinental Hotels Group PLC (IHG) has a Forward P/S ratio of 8.15. This means the market is valuing IHG at $8.15 for every dollar of expected revenue over the next 12 months.

IHG Valuation