QualityDipStocks / Finance · Brokers & investment banks
Interactive Brokers Group IBKR
On dip watch: 22% below its 52-week high.
A quality company trading well above our fair value estimate, 6% under its Market Value.
- Fair value est.
- $39.47−49%
- Market Value
- $81.68price −6%
- Off 52-wk high
- −22%
- Risk vs market
- Highbeta 2.11
5 bullish · 5 bearish See why
Key levels
Every level vs today’s $76.90
- Fair value est.base case$39.47−48.7%
- 52-wk lowlowest close, 1 year$61.05−20.6%
- PriceFri Oct 30 close$76.90you are here
- Market Valueavg paid since Oct 15$81.68+6.2%
- 52-wk highhighest close, 1 year$98.19+27.7%
Fair value estimate
How the range is computed
Financials model (residual income). Same residual-income model as the base: cost of equity 9.5% ±1 point and return on equity 19.3% ±2 points. Bear = 10.5% and 17.3%; bull = 8.5% and 21.3%. A model estimate from public filings, not a forecast of where the price will go.
Price is above even the bull case.
What the price implies To be worth today’s price, IBKR would need a return on equity of about 27% a year; our estimate uses 19%.
Risk vs market
How risk vs market is measured
One year of daily returns (Oct 30 to Oct 30, 252 sessions). Beta = how much IBKR moved for each 1% move in the S&P 500 (SPY); 1.0 moves with the market. Volatility is the yearly standard deviation of daily returns. Past behavior, not a forecast.
Swings much more than the market, and its own price swings are 3.1× the S&P 500’s.
- Beta vs S&P 500
- 2.11
- Volatility
- 40% vs 13% SPY
- Correlation SPY
- 0.68
- Correlation QQQ
- 0.63
Bull vs bear
Rule-based from the data on this page, strongest first. Not advice.
Top bullish points 5 of 5
GrowthSales compounded 26% a year from FY2022 to FY2025.
GrowthSales grew 21% to $6.9B over the last 12 months vs the 12 months before (SEC filings).
GrowthDiluted EPS grew 28% to $2.22 in FY2025.
ValuationTrades 5.9% below its Market Value of $81.68, the average price paid since the Oct 15 filing.
QualityPasses all four of our quality checks: cash generation, returns on capital, growth and balance sheet.
Top bearish points 5 of 5
ValuationOur residual-income fair value estimate is $39.47, 49% below the price.
ValuationP/E of 30.7× vs a 13.5× median for the 151 Finance companies we cover.
ValuationP/E of 30.7× is 33% above its own average of 23.0× at the last 3 fiscal year-ends.
ValuationPrice / book of 5.9×, above the 1.8× median for the 143 Finance companies we cover.
RiskSwings hard: beta 2.11 vs the S&P 500 and 40% yearly volatility (SPY 13%).
Who’s talking about it
Notable investors, executives, analysts and public figures on Interactive Brokers Group in the last 48 hours. Headlines as published, each linked. Their words, not ours.
No notable mentions in the last 48 hours. Checked Nov 1, 9:09 PM ET.
Compare with peers
Closest in size in Brokers & investment banks
All fundamentals
P/E 30.7 · ROE 21% · Sales +21%
Valuation
- P/E
- 30.7×3-yr-end avg 23.0× · Finance median 13.5×
- Price / FCF
- n/acash flow isn't a clean measure for a lender
- FCF yield
- n/acash flow isn't a clean measure for a lender
- EV / EBITDA
- n/anot meaningful for a lender
- Price / sales
- 5.04×
- Price / book
- 5.86×
- Market cap
- $34.6Bprice × diluted shares
- Enterprise value
- n/anot reported in its SEC filings
Growth
- Revenue, 12 months
- $6.9Bnet interest income + noninterest income
- Sales growth, 12 months
- +21.3%vs the 12 months before
- Sales growth, 3 yrs
- +26.5%/yrfrom FY2022
- Diluted EPS, 12 months
- $2.52
- EPS growth, last FY
- +28.3%
- Net income, 12 months
- $1.1B
- Net income growth
- +34%12 months vs before
Profitability
- Gross margin
- n/anot meaningful for a lender
- Operating margin
- n/anot reported in its SEC filings
- Net margin
- 16.4%
- FCF margin
- n/anot reported in its SEC filings
- Return on equity
- 21%
- Return on invested capital
- n/anot meaningful for a lender
Balance sheet
- Cash & short-term inv.
- $7.7B
- Total debt
- n/anot reported in its SEC filings
- Net cash
- n/anot meaningful for a lender
- Debt / equity
- n/adeposits/float make debt/equity not comparable for a lender
- Interest coverage
- n/anot meaningful for a lender
Cash flow & returns
- Free cash flow, 12 months
- n/anot reported in its SEC filings
- FCF growth, 12 months
- n/anot reported in its SEC filings
- Dividend yield
- 0.42%$147M paid
- Payout ratio
- 13%
- Buybacks, 12 months
- n/anot reported in its SEC filings
- Share count, 1 year
- +2.0%diluted shares vs a year ago
- Stock-based comp
- $124M
Trailing 12 months to Jun 30, 2026; balance sheet at Jun 30, 2026. From Interactive Brokers Group’s SEC filings. Sparklines show up to six fiscal years. n/a means we don’t hold that number, with the reason. How each is computed.
Valuation details
DCF $39.47 · MV $81.68
Financials model (residual income): book value $13.07 a share on Jun 30, 2026, plus the earnings above a 9.5% cost of equity. ROE 19.3%, the average of 21.2% for the trailing 12 months to Jun 30, 2026 and 17.4% over fiscal 2021–2025, on average common equity; payout 13% of earnings (dividends 13%), so book grows by the retained rest; the return above 9.5% fades halfway toward 9.5% over 10 years, then grows at 3% (terminal value). From the 10-Q filed Aug 6, 2026.
Setup & signals
No setup armed
No setup armed, so there’s no trigger or stop to track yet. We watch it daily for our three reversal signal rules while it sits in a dip.
Momentum & 52-week range
RSI 34 · 5 days −4.2%
The business
FCF $15.1B · Sales +21%
- Free cash flow, 12 months$15.1B
- Free-cash-flow yield40.8%
- Return on equity22%
- Sales growth (latest quarter vs year-ago quarter)+21%
Information only, not investment advice. Fair value estimates and talking points are rule-based model output from public data and can be wrong; stop levels are reference points, not orders. How every number is computed.
Get a text when IBKR fires a reversal signal
One text when a published rule fires on IBKR or any of the 333 quality companies we track: the ticker, the price, the stop and a link to the numbers. Nothing else.