ROIC % measures how well a company generates cash flow relative to the capital it has invested in its business. It is also called ROC %. IG Group Holdings's annualized return on invested capital (ROIC %) for the quarter that ended in May. 2025 was 21.09%.
As of today (2026-06-27), IG Group Holdings's WACC % is 7.08%. IG Group Holdings's ROIC % is 19.20% (calculated using TTM income statement data).
IG Group Holdings 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.
IG Group Holdings (OTCPK:IGGRF) 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, IG Group Holdings's WACC % is 7.08%. IG Group Holdings's ROIC % is 19.20% (calculated using TTM income statement data).
IG Group Holdings 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.
IG Group Holdings ROIC % Related Terms
IG Group Holdings ROIC % Historical Data
* Premium members only.
The historical data trend for IG Group Holdings's ROIC % 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.
For the Capital Markets subindustry, IG Group Holdings'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.
IG Group Holdings ROIC % vs Capital Markets Industry
For the Capital Markets industry and Financial Services sector, IG Group Holdings's ROIC % distribution charts can be found below:
* The bar in red indicates where IG Group Holdings's ROIC % falls into.
Note:
The Operating Income data used here is two times the semi-annual (May. 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.
IG Group Holdings (IGGRF) has a ROIC % of 21.09% as of May. 2025. Return on invested capital is the ratio of current-period net income to average two-period invested capital. View historical data on IG Group Holdings and its competitors.
Is IG Group Holdings' ROIC % too high?
IG Group Holdings' current ROIC % is 21.09%. The Capital Markets industry median ROIC % is 1.23. IG Group Holdings' value of 21.09% is 1621.6% above this industry median. Overall, IG Group Holdings has a GF Score™ of 70/100 and is considered Significantly Overvalued, reflecting its overall financial health beyond just this single metric.
How does IG Group Holdings' ROIC % compare to MS and GS?
IG Group Holdings' ROIC % of 21.09% can be compared against companies in the Capital Markets industry. The industry median ROIC % is 1.23. IG Group Holdings' value of 21.09% is 1621.6% 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 Capital Markets company?
The median ROIC % among Capital Markets companies is 1.23, based on 694 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. IG Group Holdings's current ROIC % of 21.09% is 1621.6% 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 IG Group Holdings and its competitors. For the Capital Markets industry, the median ROIC % is 1.23 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. IG Group Holdings's current ROIC % is 21.09%. 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 $13.77, compared to a current price of $24.80 — trading 80.1% above its estimated fair value. The current ROIC % is 21.09% and 1621.6% above the Capital Markets industry median of 1.23. IG Group Holdings' overall GF Score™ is 70/100 with 9 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 IG Group Holdings (IGGRF), the current ROIC % is 21.09% 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 80.1% above its estimated GF Value™ of $13.77.
GuruFocus considers IG Group Holdings to be Significantly Overvalued.
Key valuation signals for IGGRF:
ROIC %: 21.09%
GF Value™: $13.77 vs. price of $24.80 (80.1% above fair value)
Industry Position: 1621.6% above the Capital Markets median
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.
70GF Score
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