IBKR
Interactive Brokers Group Inc
Price:  
58.92 
USD
Volume:  
3,705,913
United States | Capital Markets

IBKR Fair Value

-20.4 %
Upside

What is the fair value of IBKR?

As of 2025-07-11, the Fair Value of Interactive Brokers Group Inc (IBKR) is 46.91 USD. This value is based on the Peter Lynch's Fair Value formula. With the current market price of 58.92 USD, the upside of Interactive Brokers Group Inc is -20.4%.

Is IBKR a good investment?

With the market price of 58.92 USD and our fair value calculation, Interactive Brokers Group Inc (IBKR) is not a good investment. Investing in IBKR stocks now will result in a potential loss of 20.4%.

58.92 USD
Stock Price
46.91 USD
Fair Price
FAIR VALUE CALCULATION

IBKR Fair Value

Peter Lynch's formula is:

IBKR Fair Value
= Earnings Growth Rate x TTM EPS
IBKR Fair Value
= 25 x 1.88
IBKR Fair Value
= 46.91

The earnings growth rate we use in the formula is the average growth rate of net income/earnings over the last 5 years. If the average growth rate is smaller than 5%, we set it to 5%. If it is larger than 25%, we set it to 25%. If the TTM EPS is negative, Peter Lynch Fair Value's result can be unreliable.

Historical Earnings
12-202012-202112-202212-202312-20245Y Avg
Net income195308380600755448
YoY growth21.1%57.9%23.4%57.9%25.8%37.2%

IBKR Fair Value - Peers Benchmarking

Market Cap (mil)EPS Fair Value Upside
a
Raymond James Financial Inc32,32010.9200.3825.1%
LPL Financial Holdings Inc30,40713.6247.6-34.9%
Houlihan Lokey Inc13,3125.7138.69-27.3%
Evercore Inc11,55811.3215.76-27.8%
Stifel Financial Corp11,292690.71-17.2%
Virtu Financial Inc6,7932.152.0418.1%
Moelis & Co5,5252.254.04-23.2%
Piper Sandler Companies5,37511.5286.51-5.3%
Lazard Ltd4,8973.280.8655.5%
RF Capital Group Inc112-0.2-1-110.8%

IBKR Fair Value - Key Data

Market Cap (mil)24,900
P/E31.4x
Forward P/E12.3x
EPS1.88
Avg earnings growth rate37.2%
TTM earnings793

IBKR Fair Value - Formula's Origin

Peter Lynch is one of the most legendary investors/fund managers of all time. His philosophy for stock investing is very simple and straightforward: he invests in stocks that are undervalued, meaning its P/E is less than or equal to its earnings growth rate. He believes that if a stock is trading at its fair value, the PEG ratio, which was also invented by him, should be 1.

Therefore, his formula to determine a company's fair value is:

Peter Lynch Fair Value = Earnings Growth Rate * EPS * PEG

PEG is set to 1 so we can ignore it in the calculation. Based on the formula, if the earnings growth rate of a company is 15%, Peter Lynch is willing to buy its share up to P/E = 15.