IG Group Holdings plc

LSE:IGG Stock Report

Market Cap: UK£3.3b

IG Group Holdings Valuation

Is IGG undervalued compared to its fair value, analyst forecasts and its price relative to the market?

Valuation Score

5/6

Valuation Score 5/6

  • Below Fair Value

  • Significantly Below Fair Value

  • Price-To-Earnings vs Peers

  • Price-To-Earnings vs Industry

  • Price-To-Earnings vs Fair Ratio

  • Analyst Forecast

Share Price vs Fair Value

What is the Fair Price of IGG when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: IGG (£9.28) is trading below our estimate of fair value (£20.01)

Significantly Below Fair Value: IGG is trading below fair value by more than 20%.

Key Valuation Metric

Which metric is best to use when looking at relative valuation for IGG?

Key metric: As IGG is profitable we use its Price-To-Earnings Ratio for relative valuation analysis.

The above table shows the Price to Earnings ratio for IGG. This is calculated by dividing IGG's market cap by their current earnings.
What is IGG's PE Ratio?
PE Ratio10.7x
EarningsUK£307.70m
Market CapUK£3.29b

Price to Earnings Ratio vs Peers

How does IGG's PE Ratio compare to its peers?

The above table shows the PE ratio for IGG vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyForward PEEstimated GrowthMarket Cap
Peer Average17.6x
TCAP TP ICAP Group
19.5x21.5%UK£1.9b
PLUS Plus500
8.2x-0.09%UK£1.8b
AJB AJ Bell
23.4x7.4%UK£1.9b
CMCX CMC Markets
19.3x15.0%UK£904.8m
IGG IG Group Holdings
10.7x6.0%UK£3.3b

Price-To-Earnings vs Peers: IGG is good value based on its Price-To-Earnings Ratio (10.7x) compared to the peer average (17.6x).

Price to Earnings Ratio vs Industry

How does IGG's PE Ratio compare vs other companies in the GB Capital Markets Industry?

3 CompaniesPrice / EarningsEstimated GrowthMarket Cap
PNIX Phoenix Digital Assets
1.1xn/aUS$32.25m
IX. i(x) Net Zero
0.1xn/aUS$8.94m
APQ APQ Global
0.4xn/aUS$5.78m
No more companies available in this PE range
IGG 10.7xIndustry Avg. 12.1xNo. of Companies16PE01020304050+
3 CompaniesEstimated GrowthMarket Cap
No more companies

Price-To-Earnings vs Industry: IGG is good value based on its Price-To-Earnings Ratio (10.7x) compared to the UK Capital Markets industry average (12.1x).

Price to Earnings Ratio vs Fair Ratio

What is IGG's PE Ratio compared to its Fair PE Ratio? This is the expected PE Ratio taking into account the company's forecast earnings growth, profit margins and other risk factors.

IGG PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio10.7x
Fair PE Ratio16.4x

Price-To-Earnings vs Fair Ratio: IGG is good value based on its Price-To-Earnings Ratio (10.7x) compared to the estimated Fair Price-To-Earnings Ratio (16.4x).

Analyst Price Targets

What is the analyst 12-month forecast and do we have any statistical confidence in the consensus price target?

The above table shows the analyst IGG forecast and predictions for the stock price in 12 month’s time.
DateShare PriceAverage 1Y Price TargetDispersionHighLow1Y Actual priceAnalysts
CurrentUK£9.28
UK£10.85
+16.9%
11.5%UK£12.25UK£7.82n/a8
Nov ’25UK£8.99
UK£10.85
+20.6%
11.5%UK£12.25UK£7.82n/a8
Oct ’25UK£9.24
UK£10.85
+17.4%
11.5%UK£12.25UK£7.82n/a8
Sep ’25UK£9.72
UK£10.61
+9.1%
13.8%UK£12.25UK£7.82n/a8
Aug ’25UK£9.35
UK£9.85
+5.4%
13.0%UK£11.50UK£7.82n/a7
Jul ’25UK£8.22
UK£9.38
+14.2%
10.7%UK£11.00UK£7.82n/a7
Jun ’25UK£8.10
UK£9.42
+16.3%
11.1%UK£11.00UK£7.82n/a7
May ’25UK£7.55
UK£9.35
+23.9%
10.9%UK£11.00UK£7.82n/a7
Apr ’25UK£7.30
UK£9.35
+28.1%
10.9%UK£11.00UK£7.82n/a7
Mar ’25UK£7.09
UK£9.35
+31.9%
10.9%UK£11.00UK£7.82n/a7
Feb ’25UK£7.02
UK£9.46
+34.8%
9.3%UK£11.00UK£8.57n/a7
Jan ’25UK£7.66
UK£9.84
+28.6%
9.6%UK£11.50UK£8.59n/a7
Dec ’24UK£6.92
UK£9.84
+42.3%
9.6%UK£11.50UK£8.59n/a7
Nov ’24UK£6.39
UK£10.14
+58.8%
12.7%UK£12.50UK£8.01UK£8.997
Oct ’24UK£6.44
UK£9.99
+55.2%
16.4%UK£12.50UK£6.67UK£9.247
Sep ’24UK£6.74
UK£10.25
+52.1%
16.7%UK£12.50UK£6.67UK£9.727
Aug ’24UK£6.94
UK£10.53
+51.9%
17.2%UK£12.50UK£6.67UK£9.357
Jul ’24UK£6.77
UK£10.75
+58.7%
17.2%UK£12.50UK£6.67UK£8.227
Jun ’24UK£6.82
UK£10.75
+57.7%
17.2%UK£12.50UK£6.67UK£8.107
May ’24UK£7.34
UK£10.77
+46.9%
17.3%UK£12.50UK£6.67UK£7.557
Apr ’24UK£6.99
UK£10.77
+54.2%
17.3%UK£12.50UK£6.67UK£7.307
Mar ’24UK£8.02
UK£10.83
+35.1%
16.1%UK£12.50UK£6.67UK£7.098
Feb ’24UK£7.98
UK£10.77
+35.0%
16.1%UK£12.50UK£6.67UK£7.028
Jan ’24UK£7.82
UK£11.57
+48.0%
6.7%UK£12.50UK£10.00UK£7.667
Dec ’23UK£8.37
UK£11.57
+38.3%
6.7%UK£12.50UK£10.00UK£6.927
Nov ’23UK£7.99
UK£11.57
+44.9%
6.7%UK£12.50UK£10.00UK£6.397

Analyst Forecast: Target price is less than 20% higher than the current share price.

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