Is the IG Group share price good value at 596p?

IG Group (LON:IGG) is a provider of contracts for difference (CFDs) in over 17 countries globally. It enjoys high operating margins and equally strong return on capital figures. Companies with this level of profitability often come at a premium.

Right now, however, the IG Group share price appears to represent solid value, as shown in the group's Value Rank of 73. Let's explore this in more detail.

Digging into Ig Group's Value Rank

Looking at IG Group's, we can see that the group has a:

• Rolling price to book value of 2.69,
• Trailing twelve month price to earnings ratio of 10.6
• Trailing twelve month price to free cashflow of 7.46
• Rolling dividend yield of 7.25%
• Trailing twelve-month price to sales ratio of 3.83

This combination of financial traits suggests that, while IG Group stock is not the cheapest, it is far from expensive at these levels and is worth considering - especially if it is exposed to other positive stock market factors as well.

What does this mean for potential investors?

Some of the best quality stocks in the market have defensible models that can deliver high levels of shareholder returns over the long term. But there are no guarantees and it's important to do your own research. Indeed, we've identified some areas of concern with IG group that you can find out about here.