ROIC % measures how well a company generates cash flow relative to the capital it has invested in its business. It is also called ROC %. InterContinental Hotels Group's annualized return on invested capital (ROIC %) for the quarter that ended in Dec. 2025 was 15.64%.
As of today (2026-07-03), InterContinental Hotels Group's WACC % is 8.17%. InterContinental Hotels Group's ROIC % is 18.18% (calculated using TTM income statement data).
InterContinental Hotels Group generates higher returns on investment than it costs the company to raise the capital needed for that investment. It is earning excess returns. A firm that expects to continue generating positive excess returns on new investments in the future will see its value increase as growth increases.
InterContinental Hotels Group (FRA:IC1B) ROIC % Explanation
ROIC % measures how well a company generates cash flow relative to the capital it has invested in its business. It is also called ROC %. The reason book values of debt and equity are used is because the book values are the capital the company received when issuing the debt or receiving the equity investments.
There are four key components to this definition. The first is the use of operating income or EBIT rather than net income in the numerator. The second is the tax adjustment to this operating income or EBIT, computed as a hypothetical tax based on an effective or marginal tax rate. The third is the use of book values for invested capital, rather than market values. The final is the timing difference; the capital invested is from the end of the prior year whereas the operating income or EBIT is the current year's number.
Why is ROIC % important?
Because it costs money to raise capital. A firm that generates higher returns on investment than it costs the company to raise the capital needed for that investment is earning excess returns. A firm that expects to continue generating positive excess returns on new investments in the future will see its value increase as growth increases, whereas a firm that earns returns that do not match up to its cost of capital will destroy value as it grows.
As of today, InterContinental Hotels Group's WACC % is 8.17%. InterContinental Hotels Group's ROIC % is 18.18% (calculated using TTM income statement data).
InterContinental Hotels Group generates higher returns on investment than it costs the company to raise the capital needed for that investment. It is earning excess returns. A firm that expects to continue generating positive excess returns on new investments in the future will see its value increase as growth increases.
Be Aware
Like ROE % and ROA %, ROIC % is calculated with only 12 months of data. Fluctuations in the company's earnings or business cycles can affect the ratio drastically. It is important to look at the ratio from a long term perspective.
InterContinental Hotels Group ROIC % Related Terms
InterContinental Hotels Group ROIC % Historical Data
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
For the Lodging subindustry, InterContinental Hotels Group's ROIC %, along with its competitors' market caps and ROIC % data, can be viewed below:
* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.
InterContinental Hotels Group ROIC % vs Travel & Leisure Industry
For the Travel & Leisure industry and Consumer Cyclical sector, InterContinental Hotels Group's ROIC % distribution charts can be found below:
* The bar in red indicates where InterContinental Hotels Group's ROIC % falls into.
Note:
The Operating Income data used here is two times the semi-annual (Dec. 2025) data.
The tax rate is limited to between 0% and 100%.
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
InterContinental Hotels Group (FRA:IC1B) has a ROIC % of 15.64% as of Dec. 2025. Return on invested capital is the ratio of current-period net income to average two-period invested capital. View historical data on InterContinental Hotels Group and its competitors.
Is InterContinental Hotels Group's ROIC % too high?
InterContinental Hotels Group's current ROIC % is 15.64%. The Travel & Leisure industry median ROIC % is 3.76. InterContinental Hotels Group's value of 15.64% is 316% above this industry median. Overall, InterContinental Hotels Group has a GF Score™ of 91/100 and is considered Modestly Overvalued, reflecting its overall financial health beyond just this single metric.
How does InterContinental Hotels Group's ROIC % compare to MAR and HLT?
InterContinental Hotels Group's ROIC % of 15.64% can be compared against companies in the Travel & Leisure industry. The industry median ROIC % is 3.76. InterContinental Hotels Group's value of 15.64% is 316% above this benchmark. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good ROIC % for a Travel & Leisure company?
The median ROIC % among Travel & Leisure companies is 3.76, based on 832 companies in the industry. Companies in the top quartile (top 25%) have a ROIC % significantly above this median, while those in the bottom quartile fall well below. However, ROIC % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. InterContinental Hotels Group's current ROIC % of 15.64% is 316% above the industry median. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high ROIC % mean?
A high ROIC % can signal that a stock is expensive relative to its fundamentals. Return on invested capital is the ratio of current-period net income to average two-period invested capital. View historical data on InterContinental Hotels Group and its competitors. For the Travel & Leisure industry, the median ROIC % is 3.76 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. InterContinental Hotels Group's current ROIC % is 15.64%. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is InterContinental Hotels Group stock overvalued right now?
Based on GuruFocus' analysis, InterContinental Hotels Group (FRA:IC1B) is currently considered Modestly Overvalued. The stock's GF Value™ is €117.18, compared to a current price of €149.00 — trading 27.2% above its estimated fair value. The current ROIC % is 15.64% and 316% above the Travel & Leisure industry median of 3.76. InterContinental Hotels Group's overall GF Score™ is 91/100 with 6 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is ROIC % calculated?
ROIC % is calculated from a company's financial statements. For InterContinental Hotels Group (FRA:IC1B), the current ROIC % is 15.64% as of Dec. 2025. GuruFocus calculates this using data sourced from SEC filings and annual reports. See the calculation section and 30-year financial data on this page for the full breakdown.
Is InterContinental Hotels Group (FRA:IC1B) Overvalued in 2026?
Based on GuruFocus' analysis, InterContinental Hotels Group stock appears to be overvalued.
The current stock price of €149.00 is trading 27.2% above its estimated GF Value™ of €117.18.
GuruFocus considers InterContinental Hotels Group to be Modestly Overvalued.
Key valuation signals for FRA:IC1B:
ROIC %: 15.64%
GF Value™: €117.18 vs. price of €149.00 (27.2% above fair value)
Industry Position: 316% above the Travel & Leisure median
No single metric tells the full story. See the FRA:IC1B stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
InterContinental Hotels Group Business Description
InterContinental Hotels Group operates 1 million rooms across 20 brands addressing the midscale through luxury segments, as of Dec. 31, 2025. Holiday Inn and Holiday Inn Express constitute the largest brand, while Hotel Indigo, Even, Hualuxe, Kimpton, and Voco are newer lifestyle brands experiencing strong demand. The company launched a midscale brand, Avid, in 2017 and closed on a 51% stake in Regent Hotels in 2018. It acquired Six Senses in 2019 and launched another midscale brand, Garner, in 2023, followed by a premium conversion brand, Noted Collections, in 2026. Managed and franchised represent 99% of total rooms. As of Dec. 31, 2025, the Americas represented 52% of total rooms, with Greater China accounting for 20% and Europe, Asia, the Middle East, and Africa making up 28%.
91GF Score
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