Intercontinental Hotels Group PLC /NEW/ (IHG) intrinsic value & 10-year financials

Intercontinental Hotels Group PLC /NEW/ (IHG) has no Graham intrinsic value right now because the formula needs positive earnings. Over the last 10 fiscal years revenue grew 13.1% a year to $5.2B, with an average return on invested capital of -57.7%.

Graham intrinsic value
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Share price (Oct 17, 2026)
$167.77
Market cap
$25.9B
Revenue (FY2025)
$5.2B
Revenue growth (10-yr CAGR)
13.1%
ROIC (10-yr avg)
-57.7%
Free cash flow (FY2025)
$870.0M

IHG 10-year financial history

Fiscal year Revenue Net income EPS (diluted) Free cash flow Operating margin ROIC
FY2025 $5.2B $759.0M $4.87 $870.0M 23.1% 575.9%
FY2024 $4.9B $628.0M $3.85 $695.0M 21.1% -1012.2%
FY2023 $4.6B $750.0M $4.41 $865.0M 23.1% -545.9%
FY2022 $3.9B $376.0M $2.06 $592.0M 16.1% -327.5%
FY2021 $2.9B $265.0M $1.45 $619.0M 17.0% 442.2%
FY2020 $2.4B -$260.0M -$1.43 $111.0M -6.4% -38.0%
FY2019 $4.6B $386.0M $2.09 $578.0M 13.6% 121.6%
FY2018 $4.3B $352.0M $1.83 $620.0M 13.1% 66.6%
FY2017 $1.8B $593.0M $305.20 $590.0M 42.8% 76.4%
FY2016 $1.7B $417.0M $193.50 $720.0M 39.5% 64.0%

Source: annual 10-K filings on SEC EDGAR. Figures in USD.

Executive summary

IHG Hotels & Resorts is a consistent compounder, expanding top-line revenue at 13.1% annually over the past decade.

IHG Hotels & Resorts has earned high returns on invested capital, averaging 28.2% ROIC over the available history. High ROIC is consistent with a durable franchise, but it is not by itself proof of an economic moat.

Over the decade, IHG Hotels & Resorts shows that management has aggressively returned capital to shareholders by retiring 27.2% of outstanding shares, and that the company has leveraged its balance sheet to sustain operations.

Benjamin Graham lens

Under Benjamin Graham's formula using SEC EDGAR fundamentals, IHG Hotels & Resorts is modeled at -33.6% normalized earnings growth with a 5.1% bond-yield adjustment. The resulting Graham intrinsic value estimate is $-246.21 per share.

IHG stock: frequently asked questions

What is the intrinsic value of Intercontinental Hotels Group PLC /NEW/ (IHG) stock?

Graham's formula only works with positive earnings. Intercontinental Hotels Group PLC /NEW/ reported diluted EPS of $4.87 in fiscal 2025, so no Graham value is shown. The 10-year table shows revenue and cash-flow trends instead.

How fast has Intercontinental Hotels Group PLC /NEW/ grown?

Revenue went from $1.7B in fiscal 2016 to $5.2B in fiscal 2025, a compound annual growth rate of 13.1%. Net income was $759.0M in fiscal 2025.

Does Intercontinental Hotels Group PLC /NEW/ generate free cash flow?

Intercontinental Hotels Group PLC /NEW/ generated $870.0M of free cash flow (operating cash flow minus capital expenditures) in fiscal 2025. Free cash flow was positive in 10 of the last 10 reported years.

What is IHG's return on invested capital?

Average ROIC over the last 10 fiscal years was -57.7%, and average return on equity was -32.2%. Sustained ROIC above about 15% usually points to a durable competitive advantage.

Where does this IHG data come from?

From Intercontinental Hotels Group PLC /NEW/'s annual 10-K filings on SEC EDGAR, most recently filed Feb 26, 2026. Prices are end-of-day snapshots; valuations are formula outputs, not investment advice.

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