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IG Group Holdings (LSE:IGG) Shiller PE Ratio : 10.20 (As of May. 02, 2024)


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What is IG Group Holdings Shiller PE Ratio?

As of today (2024-05-02), IG Group Holdings's current share price is £7.545. IG Group Holdings's E10 for the fiscal year that ended in May23 was £0.74. IG Group Holdings's Shiller PE Ratio for today is 10.20.

The historical rank and industry rank for IG Group Holdings's Shiller PE Ratio or its related term are showing as below:

LSE:IGG' s Shiller PE Ratio Range Over the Past 10 Years
Min: 8.35   Med: 18.66   Max: 38.67
Current: 10.04

During the past 13 years, IG Group Holdings's highest Shiller PE Ratio was 38.67. The lowest was 8.35. And the median was 18.66.

LSE:IGG's Shiller PE Ratio is ranked better than
75.48% of 469 companies
in the Capital Markets industry
Industry Median: 19.98 vs LSE:IGG: 10.04

E10 is a concept invented by Prof. Robert Shiller, who uses E10 for his Shiller PE Ratio calculation. E10 is the average of the inflation adjusted earnings of a company over the past 10 years.

IG Group Holdings's adjusted earnings per share data of for the fiscal year that ended in May23 was £0.864. Add all the adjusted EPS for the past 10 years together and divide 10 will get our E10, which is £0.74 for the trailing ten years ended in May23.

Shiller PE for Stocks: The True Measure of Stock Valuation


IG Group Holdings Shiller PE Ratio Historical Data

The historical data trend for IG Group Holdings's Shiller PE Ratio 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.

* Premium members only.

IG Group Holdings Shiller PE Ratio Chart

IG Group Holdings Annual Data
Trend May14 May15 May16 May17 May18 May19 May20 May21 May22 May23
Shiller PE Ratio
Get a 7-Day Free Trial Premium Member Only Premium Member Only 13.92 17.92 15.74 10.88 9.02

IG Group Holdings Semi-Annual Data
May14 Nov14 May15 Nov15 May16 Nov16 May17 Nov17 May18 Nov18 May19 Nov19 May20 Nov20 May21 Nov21 May22 Nov22 May23 Nov23
Shiller PE Ratio Get a 7-Day Free Trial Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only - 10.88 - 9.02 -

Competitive Comparison of IG Group Holdings's Shiller PE Ratio

For the Capital Markets subindustry, IG Group Holdings's Shiller PE Ratio, along with its competitors' market caps and Shiller PE Ratio 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's Shiller PE Ratio Distribution in the Capital Markets Industry

For the Capital Markets industry and Financial Services sector, IG Group Holdings's Shiller PE Ratio distribution charts can be found below:

* The bar in red indicates where IG Group Holdings's Shiller PE Ratio falls into.



IG Group Holdings Shiller PE Ratio Calculation

For Shiller PE Ratio, the earnings of the past 10 years are inflation-adjusted and averaged. The result is used for P/E calculation. Since it looks at the average over the last 10 years, the Shiller PE Ratio is also called PE10.

The Shiller PE Ratio was first used by professor Robert Shiller to measure the valuation of the overall market. The same calculation is applied here to individual companies.

IG Group Holdings's Shiller PE Ratio for today is calculated as

Shiller PE Ratio=Share Price/ E10
=7.545/0.74
=10.20

* 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's E10 for the fiscal year that ended in May23 is calculated as:

For example, IG Group Holdings's adjusted earnings per share data for the fiscal year that ended in May23 was:

Adj_EPS=Earnings per Share (Diluted)/CPI of May23 (Change)*Current CPI (May23)
=0.864/129.1000*129.1000
=0.864

Current CPI (May23) = 129.1000.

IG Group Holdings Annual Data

Earnings per Share (Diluted) CPI Adj_EPS
201405 0.402 99.600 0.521
201505 0.360 100.100 0.464
201605 0.446 100.800 0.571
201705 0.459 103.500 0.573
201805 0.612 105.900 0.746
201905 0.428 107.900 0.512
202005 0.649 108.600 0.772
202105 0.999 111.000 1.162
202205 1.172 119.700 1.264
202305 0.864 129.100 0.864

Add all the adjusted EPS together and divide 10 will get our E10.

Please note that we use the CPI data of the country/region where the company is headquartered. If the CPI data for that country/region is not available, then we will use the CPI data of the United States as default.


IG Group Holdings  (LSE:IGG) Shiller PE Ratio Explanation

Compared with the regular PE Ratio, which works poorly for cyclical businesses, the Shiller PE Ratio smoothed out the fluctuations of profit margins during business cycles. Therefore it is more accurate in reflecting the valuation of the company.

If a company has consistent business performance, the Shiller PE Ratio should give similar results to regular PE Ratio.

Compared with the PS Ratio, the Shiller PE Ratio makes the comparison between different industries more meaningful.


Be Aware

Shiller PE Ratio assumes that over the long term, businesses and profitability revert to their means. If a company's business model does not work in the future compared with the past, Shiller PE Ratio and PS Ratio will give false valuations.


IG Group Holdings Shiller PE Ratio Related Terms

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IG Group Holdings (LSE:IGG) Business Description

Traded in Other Exchanges
Address
Cannon Bridge House, 25 Dowgate Hill, London, GBR, EC4R 2YA
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.

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