Choice Hotels International Inc (CHH) is undervalued and Intercontinental Hotels Group ADR (IHG) is overvalued.
Against our estimates of intrinsic value, CHH trades at the wider discount: a margin of safety of +31%, against -36% for IHG.
Values as of the 22 Sept 2026 close.
Discounting its cash flows at 7.8% (average of 3 methods) values the shares at $145.47; the price of $100.32 is 31% below that value, and 81% of that value comes from beyond year five.
Leak Score 100/100 on 3 of 12 signals
Discounting its cash flows at 9.7% (average of 3 methods) values the shares at $113.93; the price of $154.85 is 36% above that value, and 75% of that value comes from beyond year five.
Leak Score 44/100 on 2 of 12 signals
| Metric | CHH | IHG |
|---|---|---|
| Verdict | Undervalued | Overvalued |
| Price | $100.32 | $154.85 |
| Intrinsic value | $145.47 | $113.93 |
| Margin of safety | +31% | -36% |
| Leak Score | 100/100 (3/12) | 44/100 (2/12) |
| Market cap | $4.5B | $22.7B |
| Revenue growth, 5 years | 15.6% | 16.6% |
| Operating margin | 25.5% | 23.6% |
| Net margin | 20.2% | 13.4% |
| Return on equity | 563.8% | — |
| Debt to equity | 14.82 | — |
| P/E | 14.2x | 33.0x |
| Forward P/E | 13.4x | 23.6x |
| P/B | 31.9x | — |
| Dividend yield | 1.1% | 1.3% |