IG Group HoldingsIGGRF 74 Return-on-Tangible-Equity is 40.58% as of May. 2025, which is 25% above its 10-year median of 32.42. GuruFocus rates IGGRF with a GF Score™ of 74/100 and a GF Value™ of $13.66 (Significantly Overvalued). The stock has 9 warning signs investors should review. Among 781 Capital Markets companies, IG Group Holdings ranks better than 88.86% on this metric.
Return-on-Tangible-Equity is calculated as Net Income divided by its average total shareholder tangible equity. Total shareholder tangible equity equals to Total Stockholders Equity minus Intangible Assets. IG Group Holdings's annualized net income for the quarter that ended in May. 2025 was $514 Mil. IG Group Holdings's average shareholder tangible equity for the quarter that ended in May. 2025 was $1,266 Mil. Therefore, IG Group Holdings's annualized Return-on-Tangible-Equity for the quarter that ended in May. 2025 was 40.58%.
The historical rank and industry rank for IG Group Holdings's Return-on-Tangible-Equity or its related term are showing as below:
IGGRF'
s Return-on-Tangible-Equity Range Over the Past 10 Years
Min: 22.93 Med: 32.42 Max: 47.44
Current: 37.84
During the past 13 years, IG Group Holdings's highest Return-on-Tangible-Equity was 47.44%. The lowest was 22.93%. And the median was 32.42%.
IGGRF's Return-on-Tangible-Equity is ranked better than 88.86% of 781
companies
in the Capital Markets industry
Industry Median: 6.52
vs IGGRF: 37.84
IG Group Holdings (OTCPK:IGGRF) Return-on-Tangible-Equity Explanation
Return-on-Tangible-Equity measures the rate of return on the ownership interest (shareholder's tangible equity) of the common stock owners. It measures a firm's efficiency at generating profits from every unit of shareholders' tangible equity (shareholders equity minus intangibles). Return-on-Tangible-Equity shows how well a company uses investment funds to generate earnings growth. Return-on-Tangible-Equitys between 15% and 20% are considered desirable.
Be Aware
Net Income is used.
Because a company can increase its Return-on-Tangible-Equity by having more financial leverage, it is important to watch the leverage ratio when investing in high Return-on-Tangible-Equity companies. Like Return-on-Tangible-Asset, Return-on-Tangible-Equity is calculated with only 12 months data. Fluctuations in company's earnings or business cycles can affect the ratio drastically. It is important to look at the ratio from a long term perspective.
Asset light businesses require very few assets to generate very high earnings. Their Return-on-Tangible-Equitys can be extremely high.
IG Group Holdings Return-on-Tangible-Equity Related Terms
IG Group Holdings Return-on-Tangible-Equity Historical Data
* Premium members only.
The historical data trend for IG Group Holdings's Return-on-Tangible-Equity can be seen below:
* 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.
IGGRF vs MS, GS, SCHW: Return-on-Tangible-Equity Comparison
For the Capital Markets subindustry, IG Group Holdings's Return-on-Tangible-Equity, along with its competitors' market caps and Return-on-Tangible-Equity 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.
IG Group Holdings Return-on-Tangible-Equity vs Capital Markets Industry
For the Capital Markets industry and Financial Services sector, IG Group Holdings's Return-on-Tangible-Equity distribution charts can be found below:
* The bar in red indicates where IG Group Holdings's Return-on-Tangible-Equity falls into.
* 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.
In the calculation of annual Return-on-Tangible-Equity, the net income of the last fiscal year and the average total shareholder tangible equity over the fiscal year are used. In calculating the quarterly data,
the net income data used here is two times the semi-annual (May. 2025) net income data.
Return-on-Tangible-Equity is displayed in the 10-year financial page.
What does a Return-on-Tangible-Equity of 40.58% mean?
IG Group Holdings (IGGRF) has a Return-on-Tangible-Equity of 40.58% as of May. 2025. Return on tangible equity is the ratio of current-period net income to average two-period tangible equity. View historical data on IG Group Holdings and its competitors. This is 25% above median its historical median of 32.42. Over the past decade, IG Group Holdings' Return-on-Tangible-Equity has ranged from 22.93 to 47.44. According to the industry distribution chart, IG Group Holdings ranks #87 out of 781 companies in the Capital Markets industry, placing it in the top 11.1%.
Is IG Group Holdings' Return-on-Tangible-Equity too high?
IG Group Holdings' current Return-on-Tangible-Equity of 40.58% is 25% above median its 10-year median of 32.42. Over the past 10 years, this metric has ranged from a low of 22.93 to a high of 47.44. The Capital Markets industry median Return-on-Tangible-Equity is 6.52. IG Group Holdings' value of 40.58% is 522.4% above this industry median. Based on the distribution chart, IG Group Holdings ranks #87 out of 781 companies in the Capital Markets industry, which is in the top quartile — a strong position relative to peers. Overall, IG Group Holdings has a GF Score™ of 74/100 and is considered Significantly Overvalued, reflecting its overall financial health beyond just this single metric.
How does IG Group Holdings' Return-on-Tangible-Equity compare to MS and GS?
According to the Capital Markets industry distribution chart, IG Group Holdings ranks #87 out of 781 companies for Return-on-Tangible-Equity. This places IG Group Holdings in the top 11% of its industry — outperforming the majority of peers. The industry median Return-on-Tangible-Equity is 6.52. IG Group Holdings' value of 40.58% is 522.4% above this benchmark. Historically, IG Group Holdings' own Return-on-Tangible-Equity has ranged from 22.93 to 47.44 over the past decade. While the company's 10-year median is 32.42 vs. the industry median of 6.52, IG Group Holdings has consistently been above the industry average. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Return-on-Tangible-Equity for a Capital Markets company?
The median Return-on-Tangible-Equity among Capital Markets companies is 6.52, based on 781 companies in the industry. Companies in the top quartile (top 25%) have a Return-on-Tangible-Equity significantly above this median, while those in the bottom quartile fall well below. However, Return-on-Tangible-Equity should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. IG Group Holdings's current Return-on-Tangible-Equity of 40.58% is 522.4% 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 Return-on-Tangible-Equity mean?
A high Return-on-Tangible-Equity can signal that a stock is expensive relative to its fundamentals. Return on tangible equity is the ratio of current-period net income to average two-period tangible equity. View historical data on IG Group Holdings and its competitors. For the Capital Markets industry, the median Return-on-Tangible-Equity is 6.52 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. IG Group Holdings's current Return-on-Tangible-Equity is 40.58%, which is 25% above median its own 10-year median of 32.42. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is IG Group Holdings stock overvalued right now?
Based on GuruFocus' analysis, IG Group Holdings (IGGRF) is currently considered Significantly Overvalued. The stock's GF Value™ is $13.66, compared to a current price of $24.80 — trading 81.6% above its estimated fair value. The current Return-on-Tangible-Equity is 40.58%, which is 25% above median its 10-year median of 32.42 and 522.4% above the Capital Markets industry median of 6.52. IG Group Holdings' overall GF Score™ is 74/100 with 9 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Return-on-Tangible-Equity calculated?
Return-on-Tangible-Equity is calculated from a company's financial statements. For IG Group Holdings (IGGRF), the current Return-on-Tangible-Equity is 40.58% as of May. 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 IG Group Holdings (IGGRF) Overvalued in 2026?
Based on GuruFocus' analysis, IG Group Holdings stock appears to be overvalued.
The current stock price of $24.80 is trading 81.6% above its estimated GF Value™ of $13.66.
GuruFocus considers IG Group Holdings to be Significantly Overvalued.
Key valuation signals for IGGRF:
Return-on-Tangible-Equity: 40.58% (25% above median its 10-year median of 32.42)
GF Value™: $13.66 vs. price of $24.80 (81.6% above fair value)
Industry Position: 522.4% above the Capital Markets median (#87 of 781)
No single metric tells the full story. See the IGGRF stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
IG Group Holdings PLC provides online trading services to its clients. The majority of the company's revenue stems from its derivative products and contracts for difference (CFDs). The company operates through various segments which are The U.K. segment which derives its revenue from financial spread bets, CFDs, binary options, and execution-only stockbroking. The Australian segment derives its revenue from CFDs and binary options. The European segment derives its revenue from CFDs, binary options, and execution-only stockbroking. The Rest of the World segment derives its revenue from the operation of a regulated futures and options exchange as well as CFDs and binary options. The company generates more than half of its revenue from the U.K., followed by Europe and Australia.
74GF Score
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