Intrinsic value of Interactive Brokers Group - IBKR

Previous Close

$37.27

  Intrinsic Value

premium content

  Rating & Target

premium content

  Value-price divergence*

premium content

Previous close

$37.27

 
Intrinsic value premium content
 
Up/down potential premium content
 
Rating premium content
 
Value-price divergence* premium content

Premium access subscription - $499/yr

please register and log in before paying
Our model is not good at valuating stocks of financial companies, such as IBKR.

*Intrinsic value change (in %) minus stock price change (in %) in the past 12 months.

We calculate the intrinsic value of IBKR stock by summing up the current values of future distributable cash flows generated by the company and dividing the sum by the number of outstanding shares. As such, the intrinsic value calculation depends entirely on projections. The more accurate your projections of the company's performance are - the more reliable is the intrinsic value calculation result. Please make sure to check the stock valuation input data below and adjust it if necessary. The quality of the output (intrinsic valuation result) is only as good as the quality of the input. See also DISCLAIMERS.

STOCK VALUATION INPUT DATA

Revenue (in 2016), $M
Initial revenue growth rate, %
Terminal revenue growth rate, %
Revenue decline factor
Initial discount rate, %
Discount rate multiplier
Variable cost ratio, %
Fixed operating expenses, $M
Interest rate on debt, %
Effective corporate tax rate, %
Production assets / Revenue, %
Life of production assets, yrs
Working capital / Revenue, %
Revenue / Adjusted assets
Adjusted equity ratio
Cash flow adjustment, % of Revenue
Book value of equity, $M
Shares outstanding, mln
Market capitalization, $bln 14.9

 

FINANCIAL STATEMENTS FORECAST and PRESENT VALUE CALCULATION

Fiscal year
2016(a)
   2017
   2018
   2019
   2020
   2021
   2022
   2023
   2024
   2025
   2026
   2027
   2028
   2029
   2030
   2031
   2032
   2033
   2034
   2035
   2036
   2037
   2038
   2039
   2040
   2041
   2042
   2043
   2044
   2045
   2046

INCOME STATEMENT

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Revenue growth rate, %
  17.44
  2.00
  2.30
  2.57
  2.81
  3.03
  3.23
  3.41
  3.57
  3.71
  3.84
  3.95
  4.06
  4.15
  4.24
  4.31
  4.38
  4.44
  4.50
  4.55
  4.59
  4.64
  4.67
  4.70
  4.73
  4.76
  4.78
  4.81
  4.83
  4.84
  4.86
Revenue, $m
  1,475
  1,505
  1,539
  1,579
  1,623
  1,672
  1,726
  1,785
  1,849
  1,917
  1,991
  2,070
  2,154
  2,243
  2,338
  2,439
  2,546
  2,659
  2,779
  2,905
  3,038
  3,179
  3,328
  3,484
  3,649
  3,823
  4,006
  4,198
  4,401
  4,614
  4,838
Variable operating expenses, $m
 
  955
  977
  1,002
  1,031
  1,062
  1,096
  1,134
  1,174
  1,217
  1,264
  1,314
  1,367
  1,424
  1,485
  1,549
  1,617
  1,688
  1,764
  1,845
  1,929
  2,019
  2,113
  2,213
  2,317
  2,428
  2,544
  2,666
  2,795
  2,930
  3,072
Fixed operating expenses, $m
 
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
Total operating expenses, $m
  714
  955
  977
  1,002
  1,031
  1,062
  1,096
  1,134
  1,174
  1,217
  1,264
  1,314
  1,367
  1,424
  1,485
  1,549
  1,617
  1,688
  1,764
  1,845
  1,929
  2,019
  2,113
  2,213
  2,317
  2,428
  2,544
  2,666
  2,795
  2,930
  3,072
Operating income, $m
  761
  549
  562
  576
  592
  610
  630
  652
  675
  700
  727
  755
  786
  819
  853
  890
  929
  970
  1,014
  1,060
  1,109
  1,160
  1,215
  1,272
  1,332
  1,395
  1,462
  1,532
  1,606
  1,684
  1,766
EBITDA, $m
  786
  553
  565
  580
  596
  614
  634
  656
  679
  704
  731
  760
  791
  824
  859
  896
  935
  977
  1,021
  1,067
  1,116
  1,168
  1,223
  1,280
  1,341
  1,405
  1,472
  1,543
  1,617
  1,695
  1,778
Interest expense (income), $m
  77
  0
  -49,764
  -48,641
  -47,358
  -45,918
  -44,322
  -42,571
  -40,664
  -38,600
  -36,376
  -33,990
  -31,436
  -28,712
  -25,811
  -22,728
  -19,457
  -15,991
  -12,321
  -8,440
  -4,340
  -11
  4,557
  9,375
  14,453
  19,803
  25,438
  31,371
  37,616
  44,188
  51,101
Earnings before tax, $m
  761
  549
  50,326
  49,218
  47,951
  46,529
  44,952
  43,222
  41,339
  39,300
  37,103
  34,745
  32,222
  29,531
  26,665
  23,619
  20,386
  16,961
  13,335
  9,501
  5,449
  1,171
  -3,343
  -8,103
  -13,121
  -18,408
  -23,976
  -29,839
  -36,010
  -42,503
  -49,335
Tax expense, $m
  62
  148
  13,588
  13,289
  12,947
  12,563
  12,137
  11,670
  11,161
  10,611
  10,018
  9,381
  8,700
  7,973
  7,199
  6,377
  5,504
  4,579
  3,600
  2,565
  1,471
  316
  0
  0
  0
  0
  0
  0
  0
  0
  0
Net income, $m
  84
  401
  36,738
  35,929
  35,004
  33,966
  32,815
  31,552
  30,177
  28,689
  27,085
  25,364
  23,522
  21,557
  19,465
  17,242
  14,882
  12,382
  9,735
  6,935
  3,978
  855
  -3,343
  -8,103
  -13,121
  -18,408
  -23,976
  -29,839
  -36,010
  -42,503
  -49,335

BALANCE SHEET

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Cash and short-term investments, $m
  25,942
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
Total assets, $m
  54,673
  29,500
  30,179
  30,954
  31,825
  32,790
  33,848
  35,001
  36,249
  37,593
  39,036
  40,579
  42,226
  43,980
  45,843
  47,821
  49,917
  52,135
  54,481
  56,960
  59,577
  62,338
  65,251
  68,320
  71,555
  74,961
  78,548
  82,323
  86,296
  90,475
  94,871
Adjusted assets (=assets-cash), $m
  28,731
  29,500
  30,179
  30,954
  31,825
  32,790
  33,848
  35,001
  36,249
  37,593
  39,036
  40,579
  42,226
  43,980
  45,843
  47,821
  49,917
  52,135
  54,481
  56,960
  59,577
  62,338
  65,251
  68,320
  71,555
  74,961
  78,548
  82,323
  86,296
  90,475
  94,871
Revenue / Adjusted assets
  0.051
  0.051
  0.051
  0.051
  0.051
  0.051
  0.051
  0.051
  0.051
  0.051
  0.051
  0.051
  0.051
  0.051
  0.051
  0.051
  0.051
  0.051
  0.051
  0.051
  0.051
  0.051
  0.051
  0.051
  0.051
  0.051
  0.051
  0.051
  0.051
  0.051
  0.051
Average production assets, $m
  38
  18
  18
  19
  19
  20
  21
  21
  22
  23
  24
  25
  26
  27
  28
  29
  31
  32
  33
  35
  36
  38
  40
  42
  44
  46
  48
  50
  53
  55
  58
Working capital, $m
  0
  -26,386
  -26,993
  -27,687
  -28,465
  -29,328
  -30,275
  -31,306
  -32,422
  -33,625
  -34,915
  -36,296
  -37,769
  -39,337
  -41,004
  -42,773
  -44,647
  -46,632
  -48,730
  -50,947
  -53,288
  -55,758
  -58,363
  -61,108
  -64,001
  -67,048
  -70,256
  -73,633
  -77,186
  -80,924
  -84,856
Total debt, $m
  74
  -27,075
  -26,464
  -25,766
  -24,983
  -24,114
  -23,162
  -22,124
  -21,001
  -19,791
  -18,493
  -17,104
  -15,621
  -14,043
  -12,366
  -10,586
  -8,700
  -6,703
  -4,592
  -2,361
  -6
  2,480
  5,101
  7,863
  10,774
  13,840
  17,068
  20,466
  24,041
  27,802
  31,759
Total liabilities, $m
  53,699
  26,550
  27,161
  27,859
  28,642
  29,511
  30,463
  31,501
  32,624
  33,834
  35,132
  36,521
  38,004
  39,582
  41,259
  43,039
  44,925
  46,922
  49,033
  51,264
  53,619
  56,105
  58,726
  61,488
  64,399
  67,465
  70,693
  74,091
  77,666
  81,427
  85,384
Total equity, $m
  974
  2,950
  3,018
  3,095
  3,182
  3,279
  3,385
  3,500
  3,625
  3,759
  3,904
  4,058
  4,223
  4,398
  4,584
  4,782
  4,992
  5,214
  5,448
  5,696
  5,958
  6,234
  6,525
  6,832
  7,155
  7,496
  7,855
  8,232
  8,630
  9,047
  9,487
Total liabilities and equity, $m
  54,673
  29,500
  30,179
  30,954
  31,824
  32,790
  33,848
  35,001
  36,249
  37,593
  39,036
  40,579
  42,227
  43,980
  45,843
  47,821
  49,917
  52,136
  54,481
  56,960
  59,577
  62,339
  65,251
  68,320
  71,554
  74,961
  78,548
  82,323
  86,296
  90,474
  94,871
Debt-to-equity ratio
  0.076
  -9.180
  -8.770
  -8.320
  -7.850
  -7.350
  -6.840
  -6.320
  -5.790
  -5.260
  -4.740
  -4.210
  -3.700
  -3.190
  -2.700
  -2.210
  -1.740
  -1.290
  -0.840
  -0.410
  0.000
  0.400
  0.780
  1.150
  1.510
  1.850
  2.170
  2.490
  2.790
  3.070
  3.350
Adjusted equity ratio
  -0.866
  0.100
  0.100
  0.100
  0.100
  0.100
  0.100
  0.100
  0.100
  0.100
  0.100
  0.100
  0.100
  0.100
  0.100
  0.100
  0.100
  0.100
  0.100
  0.100
  0.100
  0.100
  0.100
  0.100
  0.100
  0.100
  0.100
  0.100
  0.100
  0.100
  0.100

CASH FLOW

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Net income, $m
  84
  401
  36,738
  35,929
  35,004
  33,966
  32,815
  31,552
  30,177
  28,689
  27,085
  25,364
  23,522
  21,557
  19,465
  17,242
  14,882
  12,382
  9,735
  6,935
  3,978
  855
  -3,343
  -8,103
  -13,121
  -18,408
  -23,976
  -29,839
  -36,010
  -42,503
  -49,335
Depreciation, amort., depletion, $m
  25
  4
  4
  4
  4
  4
  4
  4
  4
  5
  5
  5
  5
  5
  6
  6
  6
  6
  7
  7
  7
  8
  8
  8
  9
  9
  10
  10
  11
  11
  12
Funds from operations, $m
  279
  404
  36,741
  35,933
  35,008
  33,970
  32,819
  31,557
  30,182
  28,693
  27,090
  25,369
  23,527
  21,563
  19,471
  17,247
  14,888
  12,388
  9,741
  6,942
  3,985
  863
  -3,335
  -8,095
  -13,112
  -18,399
  -23,967
  -29,829
  -35,999
  -42,492
  -49,323
Change in working capital, $m
  -265
  -517
  -607
  -694
  -779
  -863
  -947
  -1,031
  -1,116
  -1,202
  -1,290
  -1,381
  -1,473
  -1,568
  -1,667
  -1,769
  -1,874
  -1,984
  -2,098
  -2,217
  -2,341
  -2,470
  -2,605
  -2,746
  -2,893
  -3,047
  -3,208
  -3,377
  -3,553
  -3,738
  -3,932
Cash from operations, $m
  544
  905
  37,348
  36,626
  35,787
  34,833
  33,766
  32,588
  31,298
  29,896
  28,380
  26,749
  25,001
  23,131
  21,138
  19,016
  16,763
  14,372
  11,840
  9,159
  6,326
  3,333
  -730
  -5,349
  -10,219
  -15,352
  -20,758
  -26,452
  -32,446
  -38,754
  -45,391
Maintenance CAPEX, $m
  0
  -3
  -4
  -4
  -4
  -4
  -4
  -4
  -4
  -4
  -5
  -5
  -5
  -5
  -5
  -6
  -6
  -6
  -6
  -7
  -7
  -7
  -8
  -8
  -8
  -9
  -9
  -10
  -10
  -11
  -11
New CAPEX, $m
  -27
  -1
  0
  0
  -1
  -1
  -1
  -1
  -1
  -1
  -1
  -1
  -1
  -1
  -1
  -1
  -1
  -1
  -1
  -2
  -2
  -2
  -2
  -2
  -2
  -2
  -2
  -2
  -2
  -3
  -3
Cash from investing activities, $m
  -6
  -4
  -4
  -4
  -5
  -5
  -5
  -5
  -5
  -5
  -6
  -6
  -6
  -6
  -6
  -7
  -7
  -7
  -7
  -9
  -9
  -9
  -10
  -10
  -10
  -11
  -11
  -12
  -12
  -14
  -14
Free cash flow, $m
  538
  900
  37,344
  36,622
  35,783
  34,828
  33,761
  32,583
  31,293
  29,891
  28,375
  26,744
  24,995
  23,125
  21,131
  19,009
  16,755
  14,365
  11,832
  9,151
  6,317
  3,324
  -739
  -5,359
  -10,230
  -15,363
  -20,770
  -26,464
  -32,458
  -38,767
  -45,405
Issuance/(repayment) of debt, $m
  74
  -27,075
  611
  698
  784
  868
  953
  1,037
  1,123
  1,210
  1,298
  1,389
  1,482
  1,578
  1,677
  1,780
  1,886
  1,997
  2,111
  2,231
  2,355
  2,485
  2,621
  2,763
  2,911
  3,066
  3,228
  3,398
  3,575
  3,761
  3,956
Issuance/(repurchase) of shares, $m
  -1
  28,151
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  2,903
  7,642
  12,637
  17,901
  23,444
  29,280
  35,424
  41,888
Cash from financing (excl. dividends), $m  
  -163
  1,076
  611
  698
  784
  868
  953
  1,037
  1,123
  1,210
  1,298
  1,389
  1,482
  1,578
  1,677
  1,780
  1,886
  1,997
  2,111
  2,231
  2,355
  2,485
  2,621
  5,666
  10,553
  15,703
  21,129
  26,842
  32,855
  39,185
  45,844
Total cash flow (excl. dividends), $m
  350
  -26,175
  37,955
  37,320
  36,566
  35,697
  34,714
  33,620
  32,416
  31,100
  29,673
  28,133
  26,477
  24,703
  22,808
  20,789
  18,642
  16,361
  13,943
  11,382
  8,673
  5,809
  1,882
  -2,596
  -7,319
  -12,297
  -17,542
  -23,066
  -28,883
  -35,006
  -41,449
Retained Cash Flow (-), $m
  -111
  -27,844
  -68
  -78
  -87
  -96
  -106
  -115
  -125
  -134
  -144
  -154
  -165
  -175
  -186
  -198
  -210
  -222
  -235
  -248
  -262
  -276
  -291
  -307
  -323
  -341
  -359
  -378
  -397
  -418
  -440
Prev. year cash balance distribution, $m
 
  25,868
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
Cash flow adjustment, $m
 
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
Cash available for distribution, $m
 
  0
  37,887
  37,243
  36,479
  35,600
  34,608
  33,505
  32,291
  30,966
  29,529
  27,978
  26,312
  24,528
  22,622
  20,591
  18,432
  16,139
  13,708
  11,134
  8,411
  5,533
  1,590
  0
  0
  0
  0
  0
  0
  0
  0
Discount rate, %
 
  4.30
  4.52
  4.74
  4.98
  5.23
  5.49
  5.76
  6.05
  6.35
  6.67
  7.00
  7.35
  7.72
  8.11
  8.51
  8.94
  9.39
  9.86
  10.35
  10.87
  11.41
  11.98
  12.58
  13.21
  13.87
  14.56
  15.29
  16.05
  16.86
  17.70
PV of cash for distribution, $m
 
  0
  34,684
  32,411
  30,037
  27,595
  25,117
  22,636
  20,183
  17,788
  15,481
  13,287
  11,228
  9,326
  7,595
  6,045
  4,684
  3,512
  2,525
  1,714
  1,069
  572
  132
  0
  0
  0
  0
  0
  0
  0
  0
Current shareholders' claim on cash, %
  100
  50.0
  50.0
  50.0
  50.0
  50.0
  50.0
  50.0
  50.0
  50.0
  50.0
  50.0
  50.0
  50.0
  50.0
  50.0
  50.0
  50.0
  50.0
  50.0
  50.0
  50.0
  50.0
  47.9
  43.1
  36.6
  29.5
  22.7
  16.8
  11.9
  8.1

Interactive Brokers Group, Inc. operates as an automated electronic broker and market maker in approximately 100 electronic exchanges and market centers worldwide. It specializes in executing and clearing trades in securities, futures, foreign exchange instruments, bonds, and mutual funds. The company custodies and services accounts for hedge and mutual funds, registered investment advisors, proprietary trading groups, introducing brokers, and individual investors. It offers custody, prime brokerage, securities, and margin lending services. The company provides electronic execution and clearing services; and market making services on exchanges and market centers, primarily in exchange-traded equities, equity options, and equity-index options and futures. Interactive Brokers Group, Inc. was founded in 1977 and is headquartered in Greenwich, Connecticut.

FINANCIAL RATIOS  of  Interactive Brokers Group (IBKR)

Valuation Ratios
P/E Ratio 30.2
Price to Sales 1.7
Price to Book 2.6
Price to Tangible Book
Price to Cash Flow 4.7
Price to Free Cash Flow 4.9
Growth Rates
Sales Growth Rate 17.4%
Sales - 3 Yr. Growth Rate %
EPS Growth Rate %
EPS - 3 Yr. Growth Rate %
Capital Spending Gr. Rate -10%
Cap. Spend. - 3 Yr. Gr. Rate 9.7%
Financial Strength
Quick Ratio 351
Current Ratio NaN
LT Debt to Equity 0%
Total Debt to Equity 7.6%
Interest Coverage 11
Management Effectiveness
Return On Assets 0.3%
Ret/ On Assets - 3 Yr. Avg. 0.3%
Return On Total Capital 8.8%
Ret/ On T. Cap. - 3 Yr. Avg. 6.9%
Return On Equity 9.1%
Return On Equity - 3 Yr. Avg. 7.1%
Asset Turnover 0
Profitability Ratios
Gross Margin 94.6%
Gross Margin - 3 Yr. Avg. 94.3%
EBITDA Margin 58.5%
EBITDA Margin - 3 Yr. Avg. 51.9%
Operating Margin 51.6%
Oper. Margin - 3 Yr. Avg. 44.5%
Pre-Tax Margin 51.6%
Pre-Tax Margin - 3 Yr. Avg. 44.5%
Net Profit Margin 5.7%
Net Profit Margin - 3 Yr. Avg. 4.5%
Effective Tax Rate 8.1%
Eff/ Tax Rate - 3 Yr. Avg. 8.9%
Payout Ratio 31%

IBKR stock valuation input parameters

Revenue. Company's revenue (or sales) is always the starting point of any cash flow forecast. In the IBKR stock intrinsic value calculation we used $1475 million for the last fiscal year's total revenue generated by Interactive Brokers Group. The default revenue input number comes from 2016 income statement of Interactive Brokers Group. You may change it if you feel that it should be adjusted for some unusual circumstances that are not expected to be repeated in the future or if you already know (from interim financial statements, for example) that this year's revenue is going to be quite different.

Revenue growth rate. Forecasted future revenue growth rate is the most important input parameter for the intrinsic value calculation. Unlike other input parameters that are reasonably expected to be in line with their historic averages or their historic trends, the revenue growth rate by and large is a wild card: nobody really knows what the company's revenue will be in the future. Of course, the level of unpredictability is different for different industries (utility companies being the most predictable and, thus, less risky).
    We use three input parameters to forecast the revenue growth rate in our IBKR stock valuation model: a) initial revenue growth rate of 2% whose default value is the revenue growth rate in the most recent quarter compared to the quarterly revenue a year ago; b) terminal revenue growth rate of 5% whose default value is chosen to be close to the average nominal (i.e. not adjusted for inflation) GDP growth rate; and c) revenue decline factor of 0.9, which stipulates that revenue growth rate in each forecasted year will be equal to the difference of the revenue growth rate in the preceding year and the terminal revenue growth rate multiplied by this revenue decline factor (with the passage of time the revenue growth rate will be approaching the terminal revenue growth rate, but not quite reaching it - though the difference could be infinitesimally small).
    At the revenue decline factor of 1, the future revenue growth rate is forecasted to be constant and equal to the initial revenue growth rate. The smaller the revenue decline factor, the faster the revenue growth rate will approach the terminal revenue growth.

Discount rate. The discount rate is used for determining the present value of future cash flows: future cash flows are "discounted" as at normal conditions (that translate into positive expected return on investment) one dollar today is worth more than the same dollar in the future. Unlike all other valuation models, we use variable discount rate, i.e. it increases for each consecutive year. This is done to account for higher risk of cash flows coming in further in the future.
    The initial discount rate of 4.3%, whose default value for IBKR is calculated based on our internal credit rating of Interactive Brokers Group, is applied to the cash flow expected to be received a year from now (well, actually, to be precise, in the financial year following the base year - the last year for which we have financial statements). For each consecutive year the discount rate is multiplied by the discount rate multiplier of 1.05, e.i. each year it increases by 5%. Feel free to change this number to correspond to your level of risk assessment of Interactive Brokers Group.
    By the way, it is easy to set the discount rate to be constant (this would make comparison with other valuation models easier): just set the discount rate multiplier equal to 1 and chose the magnitude of the initial discount rate to your liking.

Variable cost ratio is the ratio of variable costs (i.e. costs that fluctuate with fluctuation of the volume of production) to the revenue expressed as a percentage. In the calculation of intrinsic value of IBKR stock the variable cost ratio is equal to 63.5%.

Fixed operating expenses is just that - expenses that are not dependant on the volume of production. They are set to $0 million in the base year in the intrinsic value calculation for IBKR stock. These expenses increase with the level of inflation in subsequent years.

Interest rate on debt is the average all-in rate of interest paid by the company on its debt. It is set at 183.8% for Interactive Brokers Group.

Corporate tax rate of 27% is the nominal tax rate for Interactive Brokers Group. In reality, companies find ways to pay much less taxes than that or not to pay them at all.

Cash flow adjustment could be used for any adjustment the investor deems necessary. Most commonly we use this field to account for stock options-related effects in excess of what is reported on the company's income statement. The cash flow adjustment is expressed as a percentage of the revenue, and in the current valuation of the IBKR stock is equal to 0%.

Production assets are the company's assets used for manufacturing products or provision of services. In the valuation model input table they are expressed as a percentage of revenue and for IBKR are equal to 1.2%.

Life of production assets of 0.8 years is the average useful life of capital assets used in Interactive Brokers Group operations. It is used to calculate yearly capital expenditures needed to keep these assets in good order - we call it the maintenance CAPEX.

Working capital is the difference between the company's current assets and liabilities. In the model we use the ratio of working capital to revenue, which for IBKR is equal to -1753.8%. A negative number means that the company is apt at using financial resources of its suppliers and customers; a large positive number, on the other hand, means that it either provides in-kind financing to others or is not good at managing its inventories.

Book value of equity - $974 million for Interactive Brokers Group - is used in calculation of the "floor" for intrinsic valuation based on the discounted cash flow (DCF) method. Even if the prospects are very bad for a company, its assets could always be sold now for their current fair market value.

Shares outstanding of 399.74 million for Interactive Brokers Group is needed to calculate the intrinsic value of one share.

Market capitalization is used here only for reference purposes and as a quick check that the share price and the number of shares outstanding numbers are correct - something especially to be cognizant about at stock splits. So, the market capitalization of Interactive Brokers Group at the current share price and the inputted number of shares is $14.9 billion.


Premium access subscription - $499/yr

please register and log in before paying
RELATED COMPANIES Price Int.Val. Rating
CBOE CBOE Holdings 90.01 prem.  prem.
ICE Intercontinent 65.38 prem.  prem.
NDAQ Nasdaq 70.68 prem.  prem.
MKTX MarketAxess Ho 197.64 prem.  prem.
CME CME Group Cl A 124.62 prem.  prem.
GS Goldman Sachs 220.28 prem.  prem.
YIN Yintech Invest 10.09 prem.  prem.

COMPANY NEWS

▶ [$$] Market Makers in Equity Options Are Vanishing   [Jun-02-17 11:09PM  Barrons.com]
▶ Interactive Brokers: A Review for Options Trading   [Apr-24-17 05:03PM  Motley Fool]
▶ Interactive Brokers posts 1Q profit   [Apr-18-17 04:08PM  Associated Press]
▶ Why We're Excited About These 3 Top Stocks   [Apr-17-17 08:56AM  Motley Fool]
▶ Retail investor readthrough   [Apr-06-17 05:47PM  CNBC Videos]
▶ Why Interactive Brokers Was Downgraded   [11:54AM  Barrons.com]
▶ [$$] Options Trading Pioneer Blames Retreat on Fast-Trading Sharpshooters   [Mar-10-17 12:07AM  at The Wall Street Journal]
▶ [$$] A Speculative Trade on Twitter's Rise or Fall   [Feb-11-17 01:24AM  at Barrons.com]
▶ 2 Stocks That Could Move Big Next Week   [Jan-12-17 03:40PM  at Motley Fool]
Stock chart of IBKR Financial statements of IBKR Annual reports of IBKR
Valuation of Stocks

The paper VALUATION OF STOCKS: The Quest for Intrinsic Value provides a detailed description of our valuation model and discloses the calculation algorithm.

FREE DOWNLOAD
Follow us on:   twitter   twitter   twitter   twitter

VALUATION THEORY       ASSET ALLOCATION

About X-FIN       Site news       Privacy policy       Terms of use       FAQ

Copyright © X-FIN.com 2005-2017. All rigths reserved.