Let's talk about the popular InterContinental Hotels Group PLC (LON:IHG). The company's shares saw a decent share price growth of 17% on the LSE over the last few months. The recent jump in the share price has meant that the company is trading around its 52-week high. With many analysts covering the large-cap stock, we may expect any price-sensitive announcements have already been factored into the stock’s share price. But what if there is still an opportunity to buy? Let’s take a look at InterContinental Hotels Group’s outlook and value based on the most recent financial data to see if the opportunity still exists.

See our latest analysis for InterContinental Hotels Group

Is InterContinental Hotels Group Still Cheap?

According to our valuation model, InterContinental Hotels Group seems to be fairly priced at around 4.2% below our intrinsic value, which means if you buy InterContinental Hotels Group today, you’d be paying a reasonable price for it. And if you believe the company’s true value is ￡87.98, then there’s not much of an upside to gain from mispricing. In addition to this, InterContinental Hotels Group has a low beta, which suggests its share price is less volatile than the wider market.

What does the future of InterContinental Hotels Group look like?

Future outlook is an important aspect when you’re looking at buying a stock, especially if you are an investor looking for growth in your portfolio. Although value investors would argue that it’s the intrinsic value relative to the price that matter the most, a more compelling investment thesis would be high growth potential at a cheap price. With profit expected to grow by 44% over the next couple of years, the future seems bright for InterContinental Hotels Group. It looks like higher cash flow is on the cards for the stock, which should feed into a higher share valuation.

What This Means For You

Are you a shareholder? IHG’s optimistic future growth appears to have been factored into the current share price, with shares trading around its fair value. However, there are also other important factors which we haven’t considered today, such as the track record of its management team. Have these factors changed since the last time you looked at the stock? Will you have enough conviction to buy should the price fluctuates below the true value?

Are you a potential investor? If you’ve been keeping an eye on IHG, now may not be the most advantageous time to buy, given it is trading around its fair value. However, the positive outlook is encouraging for the company, which means it’s worth diving deeper into other factors such as the strength of its balance sheet, in order to take advantage of the next price drop.