Stock Analysis

Interactive Brokers Group (IBKR): Assessing Valuation After Strong 1-Year Shareholder Return

Interactive Brokers Group (IBKR) has caught the attention of investors recently as the stock delivered strong 1-year and year-to-date returns, outpacing some peers. With shares up 84% over the past year, the company's performance deserves a closer look.

See our latest analysis for Interactive Brokers Group.

Momentum has been unmistakably strong for Interactive Brokers Group, with the stock’s 1-year total shareholder return soaring to nearly 84%. While the share price has taken a breather in the past week, the clear backdrop is a year of standout long- and short-term growth that has pushed performance well ahead of the pack. This suggests renewed confidence in future prospects.

If this kind of rapid progress has you curious about what else might be trending, now’s the perfect time to branch out and discover fast growing stocks with high insider ownership

The big question now is whether Interactive Brokers Group still offers room to run at today’s levels, or if the stock’s future gains have already been factored in by the market. Is this a fresh opportunity, or is everything priced in?

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Most Popular Narrative: 2.3% Overvalued

Compared to the latest close, the narrative’s fair value comes in just below where the shares last traded, hinting at only a slight premium. This minor gap raises questions about just how ambitious the assumptions behind the price actually are.

The introduction of new products and enhancements, such as the strengthened ATS with new liquidity providers and order types, enhancements to the IBKR Financial Advisor Portal, and the launch of securities lending for Swedish stocks, suggests potential for increased trading activity and higher commission revenue.

Read the complete narrative.

Curious how a company’s product launches and bold expansion plans stack up to future earnings hopes? The whole narrative hinges on aggressive forecasts and a surprisingly rich profit multiple. Think these upgrades alone justify the premium? Unlock the narrative to see which projections truly move the needle behind this headline valuation.

Result: Fair Value of $67.44 (OVERVALUED)

Have a read of the narrative in full and understand what's behind the forecasts.

However, ongoing global market volatility and intense competition could quickly challenge the optimistic outlook. This could put pressure on both trading activity and future growth.

Find out about the key risks to this Interactive Brokers Group narrative.

Build Your Own Interactive Brokers Group Narrative

If you see things differently or want to dive even deeper into the numbers, building your own perspective is quick and straightforward. Do it your way.

A great starting point for your Interactive Brokers Group research is our analysis highlighting 2 key rewards and 1 important warning sign that could impact your investment decision.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

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