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Is the Intercontinental Hotels share price (LON:IHG) expensive at 4,537p?

Jack Brumby

Intercontinental Hotels (LON:IHGis a large cap hotel company that franchises its brands to, and manages hotels on behalf of, third-party hotel owners . Its extensive portfolio of brands includes InterContinental, HUALUXE, Kimpton, Crowne Plaza, Hotel Indigo, EVEN Hotels, Holiday Inn, Holiday Inn Express, Holiday Inn Resort and Regent Hotels & Resorts.

Right now the Intercontinental Hotels share price is on the expensive side from a factor perspective, based on its Value Rank of 29. Let's see why this is.

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A closer look at Intercontinental Hotels' Value Rank

We can see by using Intercontinental Hotels’s StockReport that the group has a:

  • Negative rolling price to book value,
  • Trailing twelve month price to earnings ratio of 20.4
  • Trailing twelve month price to free cashflow of 27.2
  • Rolling dividend yield of 2.14%
  • Trailing twelve-month price to sales ratio of 2.36

This combination of financial traits suggests that Intercontinental Hotels stock is toward the more expensive end of the market. Being expensive is not the end of the world, of course - but it does help to have favourable exposures to other factors to justify the share price premium.

Studies indicate that combining factors such as Value, Quality and Momentum is a more effective way of outperforming the market over longer time frames. That's why we have constructed our StockReports to give an instant impression of how well exposed Intercontinental Hotels (LON:IHG) is to these three factors. We go into greater detail on factor investing in this video

Stockopedia helps you to identify return-enhancing factors such as Quality, Value and Momentum by analysing thousands of data points every day. To find out more about you find investment opportunities and analyse your portfolios then take one of our two-week free trials and have a look around.