* Note: Prices are in Million (M) USD.
Description:
Interactive Brokers Group, Inc. is a global automated electronic broker. The company is headquartered in Greenwich, Connecticut.
These criteria used Company's Cash, EBITDA and Debt balance to determines its fair value:
Cash : $3,633 M
Debt : $14 M
EBITDA : $0 M
This criteria used industry in which company operates:
Sector: Finance and insurance
Industry: Investment banking and securities dealing
Based on industry, 3 points assigned.
This criteria used Company's Price To Earning (P/E) Ratio to determines its fair value:
Forward PE Ratio: 29.35
Since Forward PE Ratio is between 25 - 35, 1 point assigned.
This criteria used Company's ability to convert Sales into free cash flow to determine fair value:
Using last 20 overlapping fiscal years (max 20).Average Free Cash Flow: $2,193 M
Average Revenue: $1,935 M
Revenue Converted To Free Cash Flow (%): 113.3%
Since Free Cash Flow (FCF) to Revenue percentage is greater than 25, 5 points assigned.
This criteria used company's growth potential to calculate its fair value:
Latest Revenue (2024-12-31): $5,185 M
Revenue 4 Years Ago (2020-12-31): $2,237 M
Last 5 Years Average Revenue Growth: 26%
Since Revenue Growth is greater than 20, 5 points assigned.
This criteria used Company's ability to buy back its own share:
Latest Share Count (2024-12-31): $436 M
Share Count 5 Years Ago (2020-12-31): $323 M
Company is not buying back its own shares, 0 points assigned.
This criteria used Company's dividend payout ratio to determine its fair value:
Next Year Earnings Per Share (EPS): $2.23
Trailing 12-Month Earnings Per Share (EPS): $2.05
Average Earnings Per Share (EPS): $2.14
Dividend Per Share (DPS): $0
Payout Ratio: 13%
Dividend Yield: 0%
Since company Payout Ratio is less than 50, 2 points assigned.
Since Dividend Yield is less than 1, 0 point assigned.
This criteria used Company's Return On Equity (ROE%) to determine its fair value:
Using last 18 valid ROE years (max 20).Average ROE: 13.6%
Since Average ROE is between 10 - 20, 3 points assigned.
This criteria used Company's current price to its 52 week low price to determines its fair value:
Current Price: $63
52-Week Low: $26
Threshold Price (15% Above 52-Week Low): $30
Since Current price is not within 15% threshold, 0 point assigned.
This criteria used Company's Market Cap to determines its fair value:
Market Capitalization: $107,879 M
Since Market Cap is between 100B - 500B, 3 points assigned.
% Exposure to Total Portfolio
Based on the market cap, we recommend do not exceed 4% exposure of Total Portfolio.
Value-Trade has assigned 22 points to above Interactive Brokers Group Inc (IBKR) stock.
Heads up: One or more P/E inputs look exaggerated and may skew the blend.
• RCFC Based PE
50.00 (>2× median)
Further research is recommended; please use your own due diligence.In such cases, multiplying earnings by the long-run average P/E typically gives a closer, more reliable fair value.
Rule of thumb: Last 3 Years Avg P/E (32.60)
× EPS ($2.14) = $69.73.
Last 3 Years Avg PE 32.6, Fair Value PE 15, Industry Based PE 15, Growth Based PE 26, RCFC Based PE 50, ROE Based PE 20.88, Risk-Free Anchored PE (25% MoS) 17.08. Based on these 7 values, average assigned is 25.22. Value-Trades has assined P/E value 25.22. Since an average (Current Year EPS + Next Year EPS) earning per share is $2.139.
The fair value of Interactive Brokers Group Inc (IBKR) stock should be (25.22 x $2.139) = $53.95.
