InterContinental Hotels Group PLC

LSE:IHG Stock Report

Market Cap: UK£15.7b

InterContinental Hotels Group Valuation

Is IHG undervalued compared to its fair value, analyst forecasts and its price relative to the market?

Valuation Score

0/6

Valuation Score 0/6

  • Below Fair Value

  • Significantly Below Fair Value

  • Price-To-Earnings vs Peers

  • Price-To-Earnings vs Industry

  • Price-To-Earnings vs Fair Ratio

  • Analyst Forecast

Share Price vs Fair Value

What is the Fair Price of IHG when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: IHG (£99.54) is trading above our estimate of fair value (£89.78)

Significantly Below Fair Value: IHG is trading above our estimate of fair value.

Key Valuation Metric

Which metric is best to use when looking at relative valuation for IHG?

Key metric: As IHG is profitable we use its Price-To-Earnings Ratio for relative valuation analysis.

The above table shows the Price to Earnings ratio for IHG. This is calculated by dividing IHG's market cap by their current earnings.
What is IHG's PE Ratio?
PE Ratio30.8x
EarningsUS$638.00m
Market CapUS$19.67b

Price to Earnings Ratio vs Peers

How does IHG's PE Ratio compare to its peers?

The above table shows the PE ratio for IHG vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyForward PEEstimated GrowthMarket Cap
Peer Average25.8x
WTB Whitbread
21.6x14.2%UK£5.2b
TRN Trainline
34.5x17.6%UK£1.9b
PPH PPHE Hotel Group
26.6x27.0%UK£583.0m
OTB On the Beach Group
20.7x22.2%UK£418.3m
IHG InterContinental Hotels Group
30.8x11.0%UK£15.7b

Price-To-Earnings vs Peers: IHG is expensive based on its Price-To-Earnings Ratio (30.8x) compared to the peer average (25.8x).

Price to Earnings Ratio vs Industry

How does IHG's PE Ratio compare vs other companies in the GB Hospitality Industry?

1 CompanyPrice / EarningsEstimated GrowthMarket Cap
TAST Tasty
0.4x-75.9%US$2.35m
No more companies available in this PE range
IHG 30.8xIndustry Avg. 20.2xNo. of Companies5PE01224364860+
1 CompanyEstimated GrowthMarket Cap
No more companies

Price-To-Earnings vs Industry: IHG is expensive based on its Price-To-Earnings Ratio (30.8x) compared to the UK Hospitality industry average (20.2x).

Price to Earnings Ratio vs Fair Ratio

What is IHG's PE Ratio compared to its Fair PE Ratio? This is the expected PE Ratio taking into account the company's forecast earnings growth, profit margins and other risk factors.

IHG PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio30.8x
Fair PE Ratio30.6x

Price-To-Earnings vs Fair Ratio: IHG is expensive based on its Price-To-Earnings Ratio (30.8x) compared to the estimated Fair Price-To-Earnings Ratio (30.6x).

Analyst Price Targets

What is the analyst 12-month forecast and do we have any statistical confidence in the consensus price target?

The above table shows the analyst IHG forecast and predictions for the stock price in 12 month’s time.
DateShare PriceAverage 1Y Price TargetDispersionHighLow1Y Actual priceAnalysts
CurrentUK£99.54
UK£88.05
-11.5%
16.8%UK£112.50UK£65.86n/a17
Dec ’25UK£98.00
UK£85.59
-12.7%
17.4%UK£110.65UK£63.47n/a17
Nov ’25UK£85.92
UK£78.10
-9.1%
12.6%UK£94.15UK£64.91n/a17
Oct ’25UK£80.98
UK£74.60
-7.9%
12.1%UK£92.98UK£60.34n/a17
Sep ’25UK£75.84
UK£73.87
-2.6%
10.6%UK£87.03UK£60.03n/a18
Aug ’25UK£76.20
UK£76.02
-0.2%
11.6%UK£90.51UK£61.34n/a18
Jul ’25UK£81.90
UK£76.31
-6.8%
11.1%UK£92.01UK£62.35n/a18
Jun ’25UK£79.00
UK£75.61
-4.3%
11.9%UK£94.57UK£59.98n/a18
May ’25UK£78.72
UK£76.05
-3.4%
11.7%UK£89.36UK£60.68n/a18
Apr ’25UK£82.42
UK£75.54
-8.3%
13.0%UK£90.68UK£57.51n/a18
Mar ’25UK£83.56
UK£73.30
-12.3%
12.1%UK£87.27UK£57.35n/a19
Feb ’25UK£74.74
UK£61.96
-17.1%
12.0%UK£78.06UK£46.21n/a19
Jan ’25UK£70.90
UK£58.89
-16.9%
9.7%UK£71.68UK£46.10n/a19
Dec ’24UK£63.04
UK£59.30
-5.9%
9.6%UK£72.94UK£46.91UK£98.0019
Nov ’24UK£58.60
UK£61.01
+4.1%
10.0%UK£75.02UK£48.28UK£85.9219
Oct ’24UK£60.74
UK£61.84
+1.8%
8.2%UK£72.03UK£50.03UK£80.9820
Sep ’24UK£59.70
UK£59.64
-0.1%
7.7%UK£65.70UK£48.49UK£75.8419
Aug ’24UK£57.70
UK£58.07
+0.6%
6.7%UK£65.13UK£50.07UK£76.2017
Jul ’24UK£54.34
UK£59.47
+9.4%
6.9%UK£66.10UK£49.74UK£81.9017
Jun ’24UK£53.38
UK£59.69
+11.8%
7.0%UK£66.54UK£50.35UK£79.0019
May ’24UK£54.60
UK£58.29
+6.8%
6.9%UK£65.02UK£47.83UK£78.7219
Apr ’24UK£53.12
UK£59.32
+11.7%
6.2%UK£65.53UK£48.98UK£82.4219
Mar ’24UK£55.80
UK£59.90
+7.3%
7.6%UK£67.34UK£50.33UK£83.5619
Feb ’24UK£56.10
UK£56.80
+1.3%
8.9%UK£65.13UK£48.13UK£74.7419
Jan ’24UK£47.44
UK£54.09
+14.0%
10.3%UK£65.72UK£41.46UK£70.9019
Dec ’23UK£48.20
UK£52.45
+8.8%
9.8%UK£61.95UK£41.57UK£63.0419

Analyst Forecast: Target price is lower than the current share price.

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Company Analysis and Financial Data Status

DataLast Updated (UTC time)
Company Analysis2024/12/30 02:38
End of Day Share Price 2024/12/30 00:00
Earnings2024/06/30
Annual Earnings2023/12/31

Data Sources

The data used in our company analysis is from S&P Global Market Intelligence LLC. The following data is used in our analysis model to generate this report. Data is normalised which can introduce a delay from the source being available.

PackageDataTimeframeExample US Source *
Company Financials10 years
  • Income statement
  • Cash flow statement
  • Balance sheet
Analyst Consensus Estimates+3 years
  • Forecast financials
  • Analyst price targets
Market Prices30 years
  • Stock prices
  • Dividends, Splits and Actions
Ownership10 years
  • Top shareholders
  • Insider trading
Management10 years
  • Leadership team
  • Board of directors
Key Developments10 years
  • Company announcements

* example for US securities, for non-US equivalent regulatory forms and sources are used.

Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.

Analysis Model and Snowflake

Details of the analysis model used to generate this report is available on our Github page, we also have guides on how to use our reports and tutorials on Youtube.

Learn about the world class team who designed and built the Simply Wall St analysis model.

Industry and Sector Metrics

Our industry and section metrics are calculated every 6 hours by Simply Wall St, details of our process are available on .

Analyst Sources

InterContinental Hotels Group PLC is covered by 55 analysts. 14 of those analysts submitted the estimates of revenue or earnings used as inputs to our report. Analysts submissions are updated throughout the day.

AnalystInstitution
Pierre-Yves GauthierAlphaValue
Fred LowranceAvondale Partners
David LoebBaird