IHG PE Ratio & Valuation, Is IHG Overvalued

Historical Valuation

InterContinental Hotels Group PLC (IHG) is now in the Fair zone, suggesting that its current forward PE ratio of 25.62 is considered Fairly compared with the five-year average of 22.46. The fair price of InterContinental Hotels Group PLC (IHG) is between 102.48 to 147.58 according to relative valuation method.

Relative Value

Fair Zone

102.48-147.58

Current Price：134.32

Fair

P/E

EV/EBITDA

EV/EBIT

P/S

P/OCF

P/FCF

Trailing

Forward

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InterContinental Hotels Group PLC (IHG) has a current Price-to-Book (P/B) ratio of -8.30. Compared to its 3-year average P/B ratio of -7.59, the current P/B ratio is approximately 9.36% higher. Relative to its 5-year average P/B ratio of -7.62, the current P/B ratio is about 8.93% higher. InterContinental Hotels Group PLC (IHG) has a Forward Free Cash Flow (FCF) yield of approximately 5.48%. Compared to its 3-year average FCF yield of 4.88%, the current FCF yield is approximately 12.41% lower. Relative to its 5-year average FCF yield of 4.69%, the current FCF yield is about 16.83% lower.

Competitors Valuation Multiple

AI Analysis

The average P/S ratio for IHG competitors is 2.83, providing a benchmark for relative valuation. InterContinental Hotels Group PLC Corp (IHG.N) exhibits a P/S ratio of 6.11, which is 115.7% above the industry average. Given its robust revenue growth of %, this premium appears unsustainable.

P/E

P/S

EV/EBITDA

EV/EBIT

Earnings Growth

Market Cap

Performance Decomposition

AI Analysis

Market capitalization of IHG increased by 0.00% over the past 1 year(s). 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(s) is driven by Unknown.

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Frequently Asked Questions

Is 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 102.48 to 147.58 according to relative valuation method.

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

The average P/S ratio for IHG's competitors is 2.83, providing a benchmark for relative valuation. InterContinental Hotels Group PLC Corp (IHG) exhibits a P/S ratio of 6.11, which is 115.70% above the industry average. Given its robust revenue growth of %, this premium appears unsustainable.

What is the current P/B ratio for InterContinental Hotels Group PLC (IHG) as of Mar 12 2026?

As of Mar 12 2026, InterContinental Hotels Group PLC (IHG) has a P/B ratio of -8.30. This indicates that the market values IHG at -8.30 times its book value.

What is the current FCF Yield for InterContinental Hotels Group PLC (IHG) as of Mar 12 2026?

As of Mar 12 2026, InterContinental Hotels Group PLC (IHG) has a FCF Yield of 5.48%. This means that for every dollar of InterContinental Hotels Group PLC's market capitalization, the company generates 5.48 cents in free cash flow.

What is the current Forward P/E ratio for InterContinental Hotels Group PLC (IHG) as of Mar 12 2026?

As of Mar 12 2026, InterContinental Hotels Group PLC (IHG) has a Forward P/E ratio of 25.62. This means the market is willing to pay $25.62 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 Mar 12 2026?

As of Mar 12 2026, InterContinental Hotels Group PLC (IHG) has a Forward P/S ratio of 6.11. This means the market is valuing IHG at $6.11 for every dollar of expected revenue over the next 12 months.

IHG Valuation