Discounted Cash Flow

Intercontinental Hotels Group Plc. /New/ ADR

IHG · Based on 10 years of SEC filings

Average annual growth rates

Metric 10-Year 5-Year 3-Year
Sales
Free Cash Flow
Average (FCF & NI)
Net Income

Average annual growth is the mean year-over-year change across each period.

Endpoint CAGR (better for long term trend)

Metric 10-Year 5-Year 3-Year
Sales
Free Cash Flow
Average (FCF & NI)
Net Income

Endpoint CAGR is the compound annual rate from the first to last year in each period.

Projections use average year-over-year growth. Change this in Settings.

Projected growth rate

Free cash flow growth
10-year: — 5-year: — 3-year: —
Averaged growth (FCF & NI)
10-year: — 5-year: — 3-year: —
Net income growth
10-year: — 5-year: — 3-year: —
Sales growth (not added to calculations)
10-year: — 5-year: — 3-year: —

Click a greyed-out slider to switch metrics. Slide between the 10-year, 5-year, and 3-year historic growth rates for FCF, net income, or their average.

%
%

Historical inputs (10 fiscal years)

YEAR Sales Net Income Free Cash Flow Net Margin EPS (diluted)
2016 $1.7b $414.0m $700.0m 24.1% $195.30
2017 $1.8b (4.0%) $592.0m (43.0%) $574.0m (-18.0%) 33.2% (37.5%) $306.70 (57.0%)
2018 $4.3b (143.1%) $351.0m (-40.7%) $663.0m (15.5%) 8.1% (-75.6%) $1.85 (-99.4%)
2019 $4.6b (6.7%) $385.0m (9.7%) $648.0m (-2.3%) 8.3% (2.8%) $2.10 (13.9%)
2020 $2.4b (-48.3%) $-260.0m (-167.5%) $111.0m (-82.9%) -10.9% (-230.5%) $-1.43 (-167.9%)
2021 $2.9b (21.4%) $266.0m (202.3%) $619.0m (457.7%) 9.2% (184.3%) $1.45 (201.7%)
2022 $3.9b (33.9%) $375.0m (41.0%) $164.0m (-73.5%) 9.6% (5.3%) $2.07 (42.5%)
2023 $4.6b (18.8%) $750.0m (100.0%) $103.0m (-37.2%) 16.2% (68.3%) $4.44 (114.2%)
2024 $4.9b (6.5%) $628.0m (-16.3%) $-80.0m (-177.7%) 12.8% (-21.4%) $3.90 (-12.2%)
2025 $5.2b (5.4%) $758.0m (20.7%) $1.0m (101.2%) 14.6% (14.5%) $4.91 (26.0%)

Base FCF: (latest fiscal year)

Discount rate: %

Terminal growth:

Projection period: years

Alt A decline yrs:

Alt B total yrs:

Projected cash flows

Year Projected cash flow Discount Factor Present Value

PV of projected FCF:

Terminal FCF:

Terminal value:

PV of terminal value:

Enterprise value (DCF):

DCF price per share:

Current price:

Alternative DCF Models

Model Fair Value Upside PV(FCFs) PV(Terminal) Total Years
Standard (10yr→TV) 10 + TV
Alt A (Gradual Decline)
Alt B (30yr Hard Stop) N/A

This is a simplified DCF model for illustration. It uses reported free cash flow, a single growth assumption, fixed WACC, and a Gordon Growth terminal value. It is not investment advice.

+ 10YR Financials Balance Sheet (10YR) Cash Flow (10YR) DCF Model