INTERCONTINENTAL HOTELS GROUP PLC /NEW/
IHGAbout the company
InterContinental Hotels Group PLC owns, manages, franchises, and leases hotels in the United Kingdom, the United States, and internationally. It operates hotels under the Six Senses, Regent, InterContinental Hotels & Resorts, Vignette Collection, Kimpton Hotel, Hotel Indigo, voco, Ruby, HUALUXE, Crowne Plaza, Iberostar Beachfront Resorts, EVEN Hotels, Holiday Inn Express, Holiday Inn, Garner, avid hotels, Atwell Suites, Staybridge Suites, IHG, Holiday Inn Club Vacations, and Candlewood Suites brand names. The company also provides IHG Rewards loyalty program.
Investment snapshot
Positive
5
BUY / PASS
Neutral / negative
3 / 8
NEUTRAL / FAIL
Median fair value
$59.25
-67.1% vs price
Models with upside
0 / 17
Positive margin of safety
Strongest signal
5 of 8 pass — Graham, Piotroski and Dreman object
Key risk
No clean pass — all 13 investors flag at least one valuation criterion
Framework analysis
| Verdict | Meaning |
|---|---|
| BUY | Positive purchase signal: the framework's buy requirements are met. |
| PASS | The company clears the framework's checklist or screen, but the framework does not produce a buy signal. For valuation frameworks this often means margin of safety is missing, insufficient, or unavailable; some screen-only frameworks have no intrinsic-value BUY state. |
| NEUTRAL | Neither a positive nor negative conclusion. It does not mean to hold an existing position. |
| FAIL | The company does not clear the framework's requirements. |
| Ranked | Ranked strategies do not use PASS: selected cohort is BUY, outside the cohort is FAIL, and unranked is NEUTRAL. |
Current investor scores use trailing 12-month flows and the latest balance sheet where supported. Multi-year and EPS tests retain annual history; each framework shows its financial basis below. Intrinsic values use annual financials.
| Metric | Graham Defensive Value | Buffett Quality Compounder | Lynch GARP | Greenblatt Magic Formula | Piotroski F-Score | Dreman Contrarian Value | Munger Quality Focus | Pabrai Dhandho Framework | Akre Three-Legged Stool | Marks Risk-Aware Value | Ackman Activist Value | Templeton Global Bargain Hunter | Sleep Scale Economies Shared | Asness Systematic Factors | Neff Low-P/E Total Return | Schloss Asset-Value Discipline | O'Shaughnessy Systematic Factor Composite |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Verdict | FAIL | FAIL | FAIL | BUY · Rank #543 (Top 17.5%) | NEUTRAL | FAIL | PASS | FAIL | PASS | FAIL | PASS | PASS | BUY | NEUTRAL | NEUTRAL | FAIL | FAIL |
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| Intrinsic Value (annual) | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | ||||||||
| Margin of Safety | N/A | -349.7% | -47.9% | -240.5% | N/A | -174.1% | -99.1% | -416.7% | N/A | N/A | -79.2% | -260.5% | N/A | N/A | N/A | N/A | N/A |
| Financial Basis | Annual history · FY 2025 Latest source filing: 2026-02-26 Score computed: 2026-11-14 | Annual history · FY 2025 Latest source filing: 2026-02-26 Score computed: 2026-11-14 | Annual history · FY 2025 Latest source filing: 2026-02-26 Score computed: 2026-11-14 | Annual history · FY 2025 Latest source filing: 2026-02-26 Score computed: 2026-11-14 | Annual history · FY 2025 Latest source filing: 2026-02-26 Score computed: 2026-11-14 | Annual history · FY 2025 · Market data at 2026-11-01 Latest source filing: 2026-02-26 Score computed: 2026-11-14 | Qualitative assessment · Annual history · FY 2025 Latest source filing: 2026-02-26 Score computed: 2026-11-14 | Qualitative assessment · Annual history · FY 2025 Latest source filing: 2026-02-26 Score computed: 2026-11-14 | Annual history · FY 2025 · Qualitative assessment Latest source filing: 2026-02-26 Score computed: 2026-11-14 | Annual history · FY 2025 · Qualitative assessment Latest source filing: 2026-02-26 Score computed: 2026-11-14 | Annual history · FY 2025 · Market data at 2026-11-01 Latest source filing: 2026-02-26 Score computed: 2026-11-14 | Annual history · FY 2025 · Price history 2025-01-01–2026-11-01 Latest source filing: 2026-02-26 Score computed: 2026-11-14 | Annual history · FY 2025 · Qualitative assessment Latest source filing: 2026-02-26 Score computed: 2026-11-14 | Annual history · FY 2025 · Price history 2025-01-01–2026-11-01 Latest source filing: 2026-02-26 Score computed: 2026-11-14 | Annual history · FY 2025 Latest source filing: 2026-02-26 Score computed: 2026-11-14 | Annual history · FY 2025 Latest source filing: 2026-02-26 Score computed: 2026-11-14 | Annual history · FY 2025 · Price history 2025-01-01–2026-11-01 Latest source filing: 2026-02-26 Score computed: 2026-11-14 |
Where It Passes
- Efficiency63% pass✓ 8✗ 3▾
5 of 8 pass — Graham, Piotroski and Dreman object
Current Ratio0.98✗Graham>= 2.0ROIC (3-5 yr avg)73.5%✓Buffett> 10%ROIC - WACC+63.5%✓BuffettPositive (WACC = 10%)EBIT / (NWC + Net Fixed Assets)303.3%✓Greenblatt> 25%Current Ratio Change YoY0.97 -> 0.98✓PiotroskiIncreased YoYRevenue / Total Assets Change YoY1.04x -> 0.97x✗PiotroskiImproved YoYCurrent Assets / Current Liabilities0.98✗Dreman> 1.5Return on Invested Capital64.8%✓Munger> 15%ROIC (high and growing)FY2023: ROIC=69.3%; FY2024: ROIC=85.5%; FY2025: ROIC=64.8%✓AkreLatest 3 consecutive FYs: ROIC > 15% in eachReinvestment Rate x ROIC41.7% (RR=64% x ROIC=64.8%)✓AkreReinvestment Rate * ROIC > 10%ROIC (5-year)5/5 years above 12% (latest 64.8%)✓SleepROIC > 12% in a majority of years
Where It Falls Short
- Valuation0% pass✓ 1✗ 27▾
No clean pass — all 13 investors flag at least one valuation criterion
Price / 3-yr avg EPS41.1x✗Graham<= 15xPrice-to-Book Ratio✗Graham<= 1.5xP/E x P/B✗Graham<= 22.5Basic earnings-growth PEG (dividends excluded)1.04✗Lynch< 1.0 (ideally < 0.5)EBIT / Enterprise Value4.0%✗Greenblatt> 10%Earnings Yield + ROC AssessmentEY=4.0%, ROC=303.3%✗GreenblattBoth EY > 10% and ROC > 25%Price / EPS37.0x✗Dreman< 12x✗Templeton< 12x (fixed ceiling; proxy for the market's cheapest 40%)Price / (CFO / Shares)33.0x✗Dreman< 8xPrice / Book Value per ShareN/A (negative BVPS)✗Dreman< 1.2x✗Templeton< 1.5x✗SchlossP/B <= 0.80x (app cutoff)Valuation ReasonablenessP/E=37.0x, OE Yield=2.7%✗MungerP/E < 25 or Owner Earnings Yield > 5%P/E or FCF YieldP/E=37.0x, FCF Yield=3.3%✗PabraiP/E < 15 or FCF Yield > 10%P/B or P/E vs. Historical AverageP/E=37.0x✗MarksP/E < 15 or P/B < 2.0Discount to Intrinsic Value-174.1% (IV=$65.65 vs Price=$179.93)✗Marks>= 20% below intrinsic valuePrice / FCF per Share34.1x✗Ackman<= 25Price vs. Trailing Low167% of trailing low ($107.89)✗Templeton<= 120% of trailing low (certified split-adjusted live window)Net income / market capitalization+2.90%; #2409/6340 (top 38.0%)✗AsnessTop 30% of eligible cross-section✗OshaughnessyTop 10% of eligible cross-sectionPositive book equity / market capitalization-0.1048; #5721/6449 (top 88.7%)✗AsnessTop 30% of eligible cross-sectionPrice / Diluted EPS37.0x✗NeffP/E <= 15x (app proxy for a P/E 40%-60% below the market)(EPS CAGR % + Dividend Yield %) / P/E0.98✓Neff> 0.7 (Neff's published traditional edge)Price / Tangible Book Value per ShareN/A (non-positive TBVPS)✗SchlossP/TBV <= 1.00x (app cutoff)Book Value per Share Change✗SchlossLatest BVPS >= earliest BVPS over >= 3 years (app rule)Revenue / market capitalization+0.1983; #3797/5247 (top 72.4%)✗OshaughnessyTop 10% of eligible cross-section(Operating cash flow - capex) / market capitalization+3.33%; #1977/4519 (top 43.7%)✗OshaughnessyTop 10% of eligible cross-sectionTrailing six-month price return through the evaluation date+16.17%; #1546/6202 (top 24.9%)✗OshaughnessyTop 10% of eligible cross-section - Valuation models0% pass✗ 8▾
IHG overvalued: all 8 models price fair value below $179.93 (median $59.25)
Buffett fair value$40.01✗Buffett-349.7% margin vs $179.93Lynch fair value$121.62✗Lynch-47.9% margin vs $179.93Greenblatt fair value$52.84✗Greenblatt-240.5% margin vs $179.93Dreman fair value$65.65✗Dreman-174.1% margin vs $179.93Munger fair value$90.36✗Munger-99.1% margin vs $179.93Pabrai fair value$34.82✗Pabrai-416.7% margin vs $179.93Ackman fair value$100.40✗Ackman-79.2% margin vs $179.93Templeton fair value$49.91✗Templeton-260.5% margin vs $179.93 - Debt & Leverage8% pass✓ 1✗ 14▾
11 of 12 flag IHG's debt & leverage — Graham, Buffett, Lynch +8 more
LT Debt vs Net Current AssetsLT Debt $3.7B vs NCA $-51.0M✗GrahamLT Debt <= Net Current AssetsDebt/Equity & Interest CoverageD/E: N/A (negative equity), IC: 5.9x✗BuffettD/E < 0.5 AND Interest Coverage > 5xTotal Debt / EquityN/A (negative equity)✗Lynch< 0.33Cash - Long-term Debt$-3.5B✗LynchPositive preferredLT Debt / Total Assets Change60.57% -> 69.65%✗PiotroskiDecreased YoYCurrent Assets / Current Liabilities0.98✗Dreman> 1.5✗SchlossCurrent ratio >= 1.50x (app cutoff)Total Debt / Shareholders' Equity✗Dreman< 0.8✗Templeton< 1.0 (fixed cap; proxy for below-sector-median leverage)✗SchlossD/E < 1.00xDebt LevelsN/A (non-positive equity)✗MungerDebt/Equity < 0.5✗AkreDebt/Equity < 0.3Interest Coverage & Debt/EBITDAIC=5.9x, D/EBITDA=3.3x✓MarksInterest Coverage > 3x; Debt/EBITDA < 4xTotal Debt / Shareholders Equity✗Ackman<= 1.0Negative debt-to-equity (higher means less debt)✗AsnessTop 30% of eligible cross-section - Profitability19% pass✓ 12✗ 23▾
13 of 16 flag IHG's profitability — Graham, Buffett, Lynch +10 more
Positive EPS (10 years)10/12 years positive✗GrahamPositive EPS every year for 10 yearsEPS Growth (3-yr avg, 10-yr window)✗Graham>= 33% growthNet Income Positive (10+ years)10/12 years positive✗BuffettPositive every year for 10+ yearsROE (up to 5-year arithmetic mean)✗Buffett> 15% arithmetic mean (app rule)Operating Margin (10-yr trend)23.1% (latest)✗BuffettStable or rising over 10 yearsFree Cash Flow Proxy$797.0M✗BuffettPositive and growingEarnings Variance (10-yr CoV)✗BuffettCoV < 0.3Retained Earnings Effectiveness✗Buffett$1 retained -> > $1 market value createdBasic earnings-growth PEG (dividends excluded)1.04✗Lynch< 1.0 (ideally < 0.5)3-5 Year EPS CAGR35.4%✓Lynch15-30% (Fast Grower); > 0% to passROEN/A (negative equity)✗Lynch> 15%EBIT / Enterprise Value4.0%✗Greenblatt> 10%Earnings Yield + ROC AssessmentEY=4.0%, ROC=303.3%✗GreenblattBoth EY > 10% and ROC > 25%Net Income / Total Assets14.18%✓PiotroskiROA > 0ROA Change YoY13.23% -> 14.18% (delta: +0.95%)✓PiotroskiCurrent ROA > Prior ROA(CFO / Total Assets) vs ROACFO/Assets=16.80%, ROA=14.18%✓PiotroskiCFO/Assets > ROAGross Margin Change YoY84.9% -> 85.3%✓PiotroskiImproved YoYPre-Tax Income / Revenue20.7%✓Dreman>= 8%Net Income / Shareholders' Equity✗Dreman> 12%Margin of SafetyP/E=37.0x✗PabraiP/B < 1.5 or P/E < 15Return on Equity✗AkreROE > 20% (3-year avg)Discount to Intrinsic Value-174.1% (IV=$65.65 vs Price=$179.93)✗Marks>= 20% below intrinsic valuePositive Net Income Frequency10/11 years positive✓MarksPositive net income in >= 7 of last 10 yearsOperating Income / Revenue23.1%✓Ackman>= 15%Net Income / Shareholders Equity✗Ackman>= 15%5-Year EPS CAGR35.4% CAGR over 4 years✓Templeton> 0% (5-year EPS CAGR)Operating Margin Trend23.1% (2023) -> 23.1% (2025)✓TempletonNon-negative operating-margin trend over 3 yearsRevenue growth vs. gross and operating margin trendgross margin 84.0% -> 85.3%, operating margin 23.1% -> 23.1%✗SleepRevenue rising; gross margin flat or falling; operating margin holdingNet income / market capitalization+2.90%; #2409/6340 (top 38.0%)✗AsnessTop 30% of eligible cross-section✗OshaughnessyTop 10% of eligible cross-sectionGross profit / total assets+82.79%; #231/3702 (top 6.2%)✓AsnessTop 30% of eligible cross-sectionNet income / positive book equity✗AsnessTop 30% of eligible cross-sectionNegative 5-year standard deviation of ROA-0.0369; #2172/5884 (top 36.9%)✗AsnessTop 30% of eligible cross-section3-5 Year Diluted EPS CAGR35.4% over 4 years✗Neff7%-20% annualizedPositive Diluted-EPS Years9/10 years positive✓Schloss>= 70% positive over 5-10 observed years (app rule) - Growth38% pass✓ 6✗ 7▾
5 of 8 flag IHG's growth — Graham, Lynch, Dreman +2 more
EPS Growth (3-yr avg, 10-yr window)✗Graham>= 33% growthBasic earnings-growth PEG (dividends excluded)1.04✗Lynch< 1.0 (ideally < 0.5)3-5 Year EPS CAGR35.4%✓Lynch15-30% (Fast Grower); > 0% to passInventory Growth vs Revenue GrowthInv: 25.0% vs Rev: 5.4%✗LynchInventory growth < Revenue growthEPS Growth Direction✗DremanPositive over recent yearsEPS CAGR✗Dreman> 5% annualizedPositive Net Income Frequency10/11 years positive✓MarksPositive net income in >= 7 of last 10 years3yr Median Revenue Growth6.5%✓Ackman>= 5%Positive EPS Growth Frequency4/5 years with positive EPS growth✓AckmanPositive EPS growth in >= 3 of last 5 years5-Year EPS CAGR35.4% CAGR over 4 years✓Templeton> 0% (5-year EPS CAGR)Revenue growth vs. gross and operating margin trendgross margin 84.0% -> 85.3%, operating margin 23.1% -> 23.1%✗SleepRevenue rising; gross margin flat or falling; operating margin holding5-year Revenue CAGR16.7%✓SleepCAGR > 7%3-5 Year Diluted EPS CAGR35.4% over 4 years✗Neff7%-20% annualized - Verdicts43% pass✓ 6✗ 8▾
Split decision: 8 FAIL · 4 PASS · 3 NEUTRAL · 1 BUY
Overall verdict✗GrahamFAIL (1/9)✗BuffettFAIL (2/9)✗LynchFAIL (2/7)✓GreenblattRank #543•PiotroskiNEUTRAL (F-Score 7)✗DremanFAIL (2/11)✓MungerPASS (2/4)✗PabraiFAIL (1/3)✓AkrePASS (3/6)✗MarksFAIL (3/5)✓AckmanPASS (5/9)✓TempletonPASS (4/8)✓SleepBUY (5/6)•AsnessNEUTRAL (Not ranked)•NeffNEUTRAL (4/6)✗SchlossFAIL (2/7)✗OshaughnessyFAIL (Rank #734/963 (Top 76.2%)) - Cash Flow50% pass✓ 6✗ 6▾
5 of 10 pass — Buffett, Dreman, Pabrai +2 more object
Free Cash Flow Proxy$797.0M✗BuffettPositive and growingFCF Positive and Growing$870.0M✓LynchPositive and growingOperating Cash Flow$898.0M✓PiotroskiCFO > 0(CFO / Total Assets) vs ROACFO/Assets=16.80%, ROA=14.18%✓PiotroskiCFO/Assets > ROAPrice / (CFO / Shares)33.0x✗Dreman< 8xP/E or FCF YieldP/E=37.0x, FCF Yield=3.3%✗PabraiP/E < 15 or FCF Yield > 10%FCF Positive11/11 years FCF positive✓MarksPositive FCF in majority of recent years(OCF - CapEx) / Market Cap2.9%✗Ackman>= 4%Price / FCF per Share34.1x✗Ackman<= 25Positive Operating Cash Flow frequency11/11 years positive✓SleepPositive OCF in >= 70% of available yearsOperating Cash Flow - Capital Expenditures$870.0M✓Neff> $0 (app proxy for a strong fundamental case)(Operating cash flow - capex) / market capitalization+3.33%; #1977/4519 (top 43.7%)✗OshaughnessyTop 10% of eligible cross-section
Business & financials
Financial snapshot: annual FY 2025. Current investor scores may use newer quarterly data.
Company Profile
Financial Snapshot
Shareholder Return
Fiscal 2025
Retired 0.0% of shares last year, 4.4% over two.
- Buybacks
- $897.0M
- Dividends
- $270.0M
What drove EPS
A buyback raises earnings per share without the company earning more. This splits each year's change into the two.
The two parts do not sum exactly to the total — the difference is the cross-term, plus preferred capital where the company has any. It is left visible rather than distributed into the other two.
Share count is the denominator the filer used for diluted EPS, recovered as net income ÷ EPS — not the balance-sheet count, which is a point-in-time figure and would put the timing difference into this split. Years with a loss are omitted: a smaller share count makes a loss per share larger, so the decomposition inverts.
Company Financials
Latest TTM and quarters alongside annual years
TTM sums four consecutive quarters and uses the latest quarter-end balances. Quarter columns show three-month results; annual columns show full-year totals. Growth compares the same period a year earlier. EPS is not added for TTM; full-year ratios are blank for quarters.
| Metric | FY 2025Sources
| FY 2024Sources
| FY 2023Sources
| FY 2022Sources
| FY 2021Sources
|
|---|---|---|---|---|---|
| Market Cap | $26.2Bcurrent | $22.2Best. | $15.6Best. | $12.1Best. | $11.4Best. |
| Revenue | $5.2B↑5% | $4.9B↑6% | $4.6B↑19% | $3.9B↑34% | $2.9B |
| Operating Income | $1.2B↑15% | $1.0B↓2% | $1.1B↑70% | $628.0M↑27% | $494.0M |
| Net Income | $758.0M↑21% | $628.0M↓16% | $750.0M↑100% | $375.0M↑41% | $266.0M |
| EPS (Diluted) | $4.87↑26% | $3.85↓13% | $4.41↑114% | $2.06↑42% | $1.45 |
| Gross Margin | 85.3% | 84.9%↑1% | 84.0%↑1% | 83.4% | 83.3% |
| Operating Margin | 23.1%↑9% | 21.1%↓8% | 23.1%↑43% | 16.1%↓5% | 17.0% |
| ROE | -27.7%↓2% | -27.2%↑29% | -38.5%↓66% | -23.2%↓29% | -18.0% |
| Total Debt | $4.2B↑28% | $3.3B↑3% | $3.2B↑32% | $2.4B↓16% | $2.8B |
| Shareholders' Equity | -$2.7B↓19% | -$2.3B↓19% | -$1.9B↓21% | -$1.6B↓9% | -$1.5B |
| Current Ratio | 0.98↑1% | 0.97 | 0.97↓11% | 1.09↓15% | 1.27 |
| Debt / Equity | -1.53↓8% | -1.42↑13% | -1.62↓9% | -1.48↑23% | -1.92 |
| Operating Cash Flow | $898.0M↑24% | $724.0M↓19% | $893.0M↑38% | $646.0M↑2% | $636.0M |
| Free Cash Flow | $870.0M↑25% | $695.0M↓20% | $865.0M↑46% | $592.0M↓4% | $619.0M |
Score history
Historical Score Timeline
Industry peers
Industry Peers
Similar companies in Restaurants, Hotels, Motels
IHG vs Peers — Financial Grading
| Company | Market Cap | Price | Revenue | Net Income | ROE | D/E | Op. Margin | Curr. Ratio | Graham | Buffett | Lynch | Greenblatt | Piotroski | Dreman |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| MCDONALDS CORPMCD | $192.0B | $271.97 | $26.9B | $8.6B | -478.1% | -22.72 | 46.1% | 0.95 | 2/9 | 6/9 | 2/7 | 1/3 | F-Score 5 | 4/11 |
| STARBUCKS CORPSBUX | $121.4B | $106.44 | $37.2B | $1.9B | -22.9% | -1.99 | 7.9% | 0.72 | 2/9 | 6/9 | 2/7 | 1/3 | F-Score 5 | 2/11 |
| MARRIOTT INTERNATIONAL INC /MD/MAR | $109.0B | $423.16 | $26.2B | $2.6B | -69.0% | -4.30 | 15.8% | 0.43 | 2/9 | 4/9 | 4/7 | 1/3 | F-Score 7 | 2/11 |
| YUM BRANDS INCYUM | $43.3B | $161.33 | $8.2B | $1.6B | -21.3% | -1.63 | 31.3% | 1.35 | 2/9 | 5/9 | 3/7 | 1/3 | F-Score 5 | 2/11 |
| DARDEN RESTAURANTS INCDRI | $25.9B | $228.74 | $13.2B | $1.2B | 54.7% | 1.09 | 12.0% | 0.31 | 3/9 | 5/9 | 3/7 | 1/3 | F-Score 7 | 5/11 |
| Hyatt Hotels CorpH | $17.5B | $187.70 | $7.1B | $52.0M | -1.6% | 1.28 | — | 0.75 | 2/9 | 1/9 | 2/7 | 1/3 | F-Score 4 | 2/11 |
| Yum China Holdings, Inc.YUMC | $17.1B | $50.86 | $11.8B | $929.0M | 17.3% | 0.02 | 10.9% | 1.05 | 2/9 | 4/9 | 4/7 | 1/3 | F-Score 7 | 6/11 |
| Texas Roadhouse, Inc.TXRH | $12.2B | $185.98 | $5.9B | $414.3M | 28.4% | — | 8.1% | 0.50 | 2/9 | 4/9 | 7/7 | 1/3 | F-Score 5 | 3/11 |