Latest Ratios: P/E Ratio 34.2x · EV/EBITDA 21.3x · ROE N/A. (2000–2025 historical series)
Price-based multiples — how expensive the stock is relative to earnings, sales, book value, and cash flow
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Market Cap | $25.1B | $21.9B | $20.4B | $15.5B | $10.7B | $12.0B | $11.9B | $12.6B | $10.5B | $12.3B | $9.5B |
| Enterprise Value | $28.6B | $25.4B | $23.1B | $17.8B | $12.6B | $13.8B | $14.4B | $15.3B | $12.0B | $14.2B | $11.0B |
| P/E Ratio → | 34.22 | 28.92 | 32.45 | 20.68 | 28.60 | 44.97 | — | 32.86 | 29.93 | 22.82 | 22.88 |
| P/S Ratio | 4.83 | 4.23 | 4.14 | 4.16 | 2.76 | 4.13 | 4.95 | 2.73 | 2.42 | 3.02 | 5.53 |
| P/B Ratio | — | — | — | — | — | — | — | — | — | — | — |
| P/FCF | 28.82 | 25.22 | 31.54 | 19.11 | 19.62 | 20.55 | 194.29 | 26.66 | 20.63 | 34.13 | 17.57 |
| P/OCF | 27.92 | 24.43 | 28.14 | 17.36 | 16.62 | 18.87 | 86.51 | 19.35 | 15.74 | 19.43 | 12.62 |
P/E links to full P/E history page with 30-year chart
Enterprise-value multiples — capital-structure-neutral measures of total business value
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| EV / Revenue | — | 4.90 | 4.68 | 4.78 | 3.23 | 4.75 | 6.03 | 3.30 | 2.77 | 3.48 | 6.41 |
| EV / EBITDA | 21.25 | 18.92 | 19.44 | 14.66 | 16.09 | 20.14 | 42.86 | 19.08 | 17.40 | 17.58 | 13.66 |
| EV / EBIT | 23.84 | 21.14 | 20.96 | 15.85 | 19.03 | 27.63 | — | 23.23 | 20.81 | 19.05 | 15.31 |
| EV / FCF | — | 29.23 | 35.69 | 21.98 | 23.00 | 23.65 | 236.77 | 32.21 | 23.67 | 39.26 | 20.36 |
Margins and return-on-capital ratios measuring operating efficiency
Full margin charts and quarterly trend are on the Earnings History page
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Gross Margin | 32.0% | 32.0% | 29.6% | 52.0% | 28.0% | 30.7% | 22.4% | 26.9% | 24.9% | 27.6% | 66.2% |
| Operating Margin | 23.1% | 23.1% | 21.1% | 28.6% | 16.1% | 17.0% | 6.9% | 13.6% | 13.1% | 17.9% | 39.5% |
| Net Profit Margin | 14.6% | 14.6% | 12.8% | 20.1% | 9.6% | 9.2% | -10.9% | 8.3% | 8.1% | 13.3% | 24.1% |
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| ROE | — | — | — | — | — | — | — | — | — | — | — |
| ROA | 15.0% | 15.0% | 13.1% | 16.6% | 8.4% | 5.5% | -5.8% | 10.0% | 10.4% | 18.2% | 12.4% |
| ROIC | 159.6% | 159.6% | 207.6% | 258.3% | 162.7% | 68.5% | 13.0% | 57.9% | 83.4% | 84.2% | 63.8% |
| ROCE | 39.5% | 39.5% | 38.3% | 40.3% | 21.8% | 15.8% | 5.7% | 25.3% | 27.5% | 41.3% | 32.3% |
Solvency and debt-coverage ratios — lower is generally safer
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Debt / Equity | — | — | — | — | — | — | — | — | — | — | — |
| Debt / EBITDA | 3.44 | 3.44 | 3.11 | 2.95 | 3.61 | 4.76 | 12.51 | 3.53 | 3.25 | 2.50 | 2.13 |
| Net Debt / Equity | — | — | — | — | — | — | — | — | — | — | — |
| Net Debt / EBITDA | 2.60 | 2.60 | 2.26 | 1.91 | 2.36 | 2.64 | 7.69 | 3.29 | 2.24 | 2.30 | 1.87 |
| Debt / FCF | — | 4.01 | 4.15 | 2.87 | 3.38 | 3.11 | 42.48 | 5.55 | 3.04 | 5.13 | 2.79 |
| Interest Coverage | — | — | 5.13 | 11.71 | 4.91 | 3.36 | 1.15 | 5.21 | 5.66 | 9.58 | 7.88 |
Short-term solvency ratios and asset-utilisation metrics
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Current Ratio | 0.98 | 0.98 | 0.97 | 0.97 | 1.09 | 1.27 | 1.20 | 0.67 | 1.00 | 0.67 | 0.69 |
| Quick Ratio | 0.97 | 0.97 | 0.97 | 0.97 | 1.08 | 1.27 | 1.20 | 0.67 | 1.00 | 0.67 | 0.68 |
| Cash Ratio | 0.54 | 0.54 | 0.53 | 0.58 | 0.63 | 0.89 | 0.87 | 0.14 | 0.51 | 0.14 | 0.20 |
| Asset Turnover | — | 0.97 | 1.04 | 0.77 | 0.92 | 0.62 | 0.48 | 1.16 | 1.16 | 1.35 | 0.59 |
| Inventory Turnover | 706.20 | 706.20 | 867.00 | 357.80 | 700.50 | 503.50 | 371.60 | 563.83 | 651.20 | 983.33 | 193.33 |
| Days Sales Outstanding | — | 61.90 | 55.75 | 60.21 | 49.14 | 53.86 | 50.92 | 45.36 | — | — | — |
Earnings, FCF, buyback, and dividend yields — total returns to shareholders
Full dividend history and growth charts are on the Dividend History page
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Dividend Yield | 1.0% | 1.2% | 1.3% | 1.6% | 2.2% | — | — | 5.7% | 1.9% | 4.8% | 17.8% |
| Payout Ratio | 35.6% | 35.6% | 41.2% | 32.7% | 62.1% | — | — | 187.3% | 56.7% | 109.8% | 408.9% |
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Earnings Yield | 2.9% | 3.5% | 3.1% | 4.8% | 3.5% | 2.2% | — | 3.0% | 3.3% | 4.4% | 4.4% |
| FCF Yield | 3.5% | 4.0% | 3.2% | 5.2% | 5.1% | 4.9% | 0.5% | 3.8% | 4.8% | 2.9% | 5.7% |
| Buyback Yield | 3.6% | 4.1% | 3.9% | 5.1% | 4.5% | 0.0% | 0.0% | 0.0% | 0.0% | 0.0% | 0.1% |
| Total Shareholder Yield | 4.7% | 5.4% | 5.2% | 6.7% | 6.7% | 0.0% | 0.0% | 5.7% | 1.9% | 4.8% | 18.0% |
| Shares Outstanding | — | $156M | $163M | $170M | $184M | $184M | $182M | $184M | $182M | $184M | $195M |
Negative equity and leverage
Based on reported financial data, IHG trades at a forward P/E of 30.28, which suggests investors are pricing in significant long-term fee growth despite the inherent cyclicality of the lodging sector and the company's recent history of volatile revenue expansion across its global geographic segments.
The current valuation multiple appears to reflect a premium relative to its historical averages, likely driven by the market's appreciation for the asset-light franchise model. However, this valuation warrants caution as it implies a high degree of confidence in future Net Room Growth, which may be challenged by the current high-interest-rate environment affecting new construction.
As reported in financial statements, IHG has maintained a remarkably high ROIC, peaking at 129.3% in 2023Q2 and settling at 53.7% in 2025Q4, which highlights the extreme capital efficiency of its franchise-heavy business model compared to more asset-intensive competitors in the global lodging industry.
While these returns on invested capital are impressive, they are mathematically inflated by the company's persistent negative equity position. Investors should monitor whether this high efficiency is sustainable or if it is merely a byproduct of aggressive share buybacks that have hollowed out the balance sheet.
According to recent SEC filings, IHG's cash conversion cycle has exhibited extreme volatility, swinging from a negative 1,273 days in 2024Q4 to a negative 25 days in 2025Q4, indicating that the timing of franchise fee collections and system fund disbursements remains highly unpredictable for the firm.
The erratic nature of these efficiency metrics suggests that the company's working capital management is heavily influenced by the accounting treatment of pass-through funds. This complexity makes it difficult to discern the underlying operational efficiency of the core franchise business without adjusting for these non-operating cash flows.
Based on the provided data, the most commonly misapplied metric for IHG is the Price-to-Book ratio, which is rendered effectively meaningless by the company's sustained negative equity position resulting from years of aggressive share repurchases and the accounting treatment of intangible assets in an asset-light model.
Analysts should instead focus on EV/EBITDA or free cash flow yields to assess valuation, as these metrics better capture the cash-generating power of the franchise fee stream. Relying on book value in this context obscures the reality that the company's true value lies in its brand portfolio and management contracts rather than tangible balance sheet assets.
Includes 30+ ratios · 26 years · Updated daily
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Quick answers to the most common questions about buying IHG stock.
InterContinental Hotels Group PLC's current P/E ratio is 34.2x. The historical average is 26.6x. This places it at the 91th percentile of its historical range.
InterContinental Hotels Group PLC's current EV/EBITDA is 21.3x. This enterprise value multiple compares the company's total value (equity + debt - cash) to its EBITDA. The historical average is 15.9x.
Based on historical data, InterContinental Hotels Group PLC is trading at a P/E of 34.2x. This is at the 91th percentile of its historical P/E range. Compare with industry peers and growth rates for a complete picture.
InterContinental Hotels Group PLC's current dividend yield is 1.04% with a payout ratio of 35.6%.
InterContinental Hotels Group PLC has 32.0% gross margin and 23.1% operating margin. Operating margin above 20% indicates strong pricing power and cost efficiency.
InterContinental Hotels Group PLC's Debt/EBITDA ratio is 3.4x, indicating high leverage. A ratio between 2-4x is manageable but warrants monitoring.