Interactive Brokers Group, Inc. (IBKR)
Valuation Overview•Is Interactive Brokers Group, Inc. Overvalued or Undervalued?
Priced at a premium to peer multiples and intrinsic cash flows, demanding strong execution to justify current levels.
High-quality fundamentals with a strong composite quality score of 78/100, backed by robust profitability and solvency.
Analysts remain cautious, with consensus price targets indicating limited room for upside expansion.
Verdict: Solid fundamental quality, though solvency presents a headwind.
Wall Street is cautious, forecasting potential downside alongside robust expected earnings growth. However, capital return yields remain modest, anchored by a strong, well-covered dividend yield.
IBKR exhibits elite business quality, driven by exceptional capital efficiency and highly lucrative margins (highlighted by a massive 24.7% ROIC). This is backed by a fortress balance sheet, holding significant net cash ($4.9B) and minimal debt risk.
The company maintains stable top-line performance paired with highly explosive earnings growth (33.3% EPS 3Y CAGR). This growth is supported by elite operational efficiency, sustaining an impressive 86.0% operating margin.
| Financial Metric | Trend (12Q) | Latest Qtr | 1Y Growth | 3Y CAGR | 5Y CAGR | 10Y CAGR |
|---|---|---|---|---|---|---|
| Revenue | $2.7B | +9.8% | — | — | +22.2% | |
| EBITDA | $2.4B | — | +40.4% | — | — | |
| Net Income | $284.0M | +30.3% | +37.3% | — | +35.0% | |
| EPS (Diluted) | $0.63 | +28.3% | +33.3% | +29.7% | +27.5% | |
| Free Cash Flow | $1.6B | +81.5% | +59.2% | +14.4% | — |
| Metric | TTM | 3Y Avg | 5Y Avg | 10Y Avg |
|---|---|---|---|---|
| Gross Margin | 89.8% | 89.0% | 85.4% | 79.2% |
| Operating Margin | 86.0% | 84.6% | 79.4% | 73.9% |
| Net Margin | 9.6% | 8.5% | 9.0% | 7.7% |
| FCF Margin | 153.9% | 101.6% | 119.1% | 123.7% |
| Quarter | EPS Est. | EPS Act. | Surprise | EPS | Rev |
|---|---|---|---|---|---|
| Q2'26Latest | $0.57 | $0.60 | +5.3% | ||
| Q1'26 | — | $0.63 | — | ||
| Q1'26 | $0.59 | $0.65 | +9.2% | ||
| Q4'25 | $0.54 | $0.57 | +5.2% | ||
| Q3'25 | $0.47 | $0.51 | +8.2% | ||
| Q2'25 | $0.48 | $0.47 | -2.3% | ||
| Q1'25 | $0.46 | $0.51 | +10.3% | ||
| Q4'24 | $0.46 | $0.44 | -3.8% |
Total return is +83.1% (1Y), outperforming the benchmark by +58.1%
| Period | Total Return | vs S&P 500 (Alpha) | Dividend Contribution |
|---|---|---|---|
| YTD | +43.0% | +33.7% | — |
| 1Y | +83.1% | +58.1% | +0.6% |
| 3YCAGR | +68.9% | +48.8% | +3.6% |
| 5YCAGR | +43.7% | +30.2% | +5.9% |
| 10YCAGR | +26.7% | +13.0% | — |
The S&P 500 is at 31.3x trailing P/E — Expensive relative to historical averages.
Quick answers to common questions about Interactive Brokers Group, Inc. (IBKR) valuation, health, and returns.
Interactive Brokers Group, Inc. is estimated to be overvalued under our discounted cash flow framework. relative multiples indicate the stock is Expensive versus peers compared to industry peers. overvalued (implying -54.9% downside from DCF intrinsic value of $43.28)
Interactive Brokers Group, Inc. has multiple valuation anchors: DCF Intrinsic Value: $43.28 | Peer Relative Fair Value: $70.24 | Wall Street Analyst Target: $87.67 (implying -8.7% upside). A convergence of these signals offers higher conviction.
Interactive Brokers Group, Inc. displays good financial health with a composite quality score of 78/100, supported by a Piotroski F-Score of 6/9, Return on Invested Capital (ROIC) of 24.7%.
Interactive Brokers Group, Inc. pays a 0.3% dividend yield, covered by a 14% payout ratio with 2 years of growth, supplemented by a 0.2% buyback yield.
Interactive Brokers Group, Inc.'s current growth trajectory is Decelerating. The company achieved +9.8% 1Y revenue growth and +28.3% 1Y EPS growth, compared to its 3Y revenue CAGR of N/A.
Wall Street consensus is Buy based on 19 analysts, beating EPS expectations in 67% of recent quarters with a 4-quarter streak. The consensus price target represents a -8.7% change from current levels.
Investment risks for Interactive Brokers Group, Inc. include: -18.8% 1-year max drawdown, high beta (1.89x market volatility). Volatility risk is characterized by a beta of 1.89x.
No. These computations are purely quantitative model outputs for informational purposes. They do not account for qualitative management shifts or macro events. Always consult a licensed RIA before buying or selling shares.
Disclaimer: This page is for informational purposes only and does not constitute financial advice. All valuation models, scores, and target estimates are automated computations under stated assumptions and should not be relied upon as the sole basis for any investment decision.