Definitive Analysis
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Definitive Analysis

Financial Statements

Ticker

Industry

Sector

IG Group Holdings plc (IGG.L)

Company Dividend Discount ModelIndustry: Financial - Capital MarketsSector: Financial Services

Valuation Snapshot

Stable Growth$61.24 - $171.17$95.13
Multi-Stage$42.43 - $46.36$44.36
Blended Fair Value$69.74
Current Price$11.22
Upside521.61%
DecisionBuy

Dividend History & Growth Metrics (10Y)

Metric5Y CAGR10Y CAGR2025202420232022202120202019201820172016
DPS0.96%4.00%0.440.470.500.490.420.420.450.320.310.27
YoY Growth---6.34%-5.21%1.02%16.59%0.31%-6.95%43.06%0.76%15.13%-8.60%
Dividend Yield--3.92%5.80%7.38%6.85%4.82%5.30%8.24%3.64%5.36%3.40%

Stable Growth Model (Adjusted)

(USD in Millions except Per Share Data)
Net Income To Common (M)953.01
(-) Cash Dividends Paid (M)296.20
(=) Cash Retained (M)656.81
MetricLOWBASEHIGH
Required Retention Ratio20.0%12.5%7.5%
(=) Cash Required (M)190.60119.1371.48
Cash Retained (M)656.81656.81656.81
(-) Cash Required (M)-190.60-119.13-71.48
(=) Excess Retained (M)466.21537.69585.34
(/) Shares Outstanding (M)379.45379.45379.45
(=) Excess Retained per Share1.231.421.54
LTM Dividend per Share0.780.780.78
(+) Excess Retained per Share1.231.421.54
(=) Adjusted Dividend2.012.202.32
WACC / Discount Rate8.83%8.83%8.83%
Growth Rate5.37%6.37%7.37%
Fair Value$61.24$95.13$171.17
Upside / Downside445.79%747.85%1,425.56%

Multi-Stage Model: Projections

(USD in Millions)
MetricTTMDec-27Dec-28Dec-29Dec-30Dec-31Terminal
Net Income (M)953.011,013.721,078.301,147.001,220.071,297.791,336.72
Payout Ratio31.08%42.86%54.65%66.43%78.22%90.00%92.50%
Projected Dividends (M)296.20434.53589.27761.97954.291,168.011,236.47

Multi-Stage Valuation

MetricLOWBASEHIGH
WACC / Discount Rate8.83%8.83%8.83%
Growth Rate5.37%6.37%7.37%
Year 1 PV (M)395.52399.28403.03
Year 2 PV (M)488.24497.55506.95
Year 3 PV (M)574.66591.18608.01
Year 4 PV (M)655.11680.33706.28
Year 5 PV (M)729.86765.15801.80
PV of Terminal Value (M)13,257.6913,898.8414,564.57
Equity Value (M)16,101.0816,832.3417,590.64
Shares Outstanding (M)379.45379.45379.45
Fair Value$42.43$44.36$46.36
Upside / Downside278.19%295.36%313.17%

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