Is Interactive Brokers Group Inc (IBKR) overvalued?
On Equity Rank's model estimate, IBKR trades 79% above its fair value. Interactive Brokers Group Inc (IBKR) last closed at $75.82; the multi-method model fair value is $42.32.
| Price | Model fair value | Price vs model |
|---|---|---|
| $75.82 | $42.32 | 79% above |
What the answer rests on
- 1 of 10 valuation methods put IBKR's value above its price and 9 put it below, so the methods mostly agree.
- To justify today's price, IBKR's free cash flow would need to grow about -2.7% a year for ten years (a reverse discounted cash flow). Over the last three years it actually grew 59.2% a year.
- IBKR trades at 29.7 times its last year's earnings, against a median of 17.4 for 95 profitable Financials companies.
- Over the past year the price sat below the model fair value on 0% of trading days. The gap ranged from 35% above to 164% above the model fair value.
Read this before relying on it
The model fair value is an estimate from published financial statements. It is not a forecast of where the price goes, and it can be wrong. Within 10% either side we call it close to fair value: valuation models are not precise enough to read more into a smaller gap. Our own lists have no proven edge over the market yet; the live record shows every result, misses included.
Every valuation method behind IBKR's fair value · What prices assume · Other companies