Definitive Analysis
Definitive Analysis

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Interactive Brokers Group, Inc. (IBKR)

Company Dividend Discount ModelIndustry: Investment - Banking & Investment ServicesSector: Financial Services

Valuation Snapshot

Stable Growth$48.81 - $129.49$74.64
Multi-Stage$33.00 - $36.07$34.51
Blended Fair Value$54.57
Current Price$68.81
Upside-20.69%
DecisionDon't Buy

Dividend History & Growth Metrics (10Y)

Metric5Y CAGR10Y CAGR2024202320222021202020192018201720162015
DPS24.30%14.87%0.210.100.090.090.070.070.070.060.060.06
YoY Growth--119.05%5.00%5.26%18.75%3.23%6.90%3.57%7.69%4.00%8.70%
Dividend Yield--0.50%0.34%0.44%0.52%0.40%0.65%0.49%0.38%0.68%0.58%

Stable Growth Model (Adjusted)

(USD in Millions except Per Share Data)
Net Income To Common (M)917.00
(-) Cash Dividends Paid (M)125.00
(=) Cash Retained (M)792.00
MetricLOWBASEHIGH
Required Retention Ratio20.0%12.5%7.5%
(=) Cash Required (M)183.40114.6368.78
Cash Retained (M)792.00792.00792.00
(-) Cash Required (M)-183.40-114.63-68.78
(=) Excess Retained (M)608.60677.38723.23
(/) Shares Outstanding (M)440.68440.68440.68
(=) Excess Retained per Share1.381.541.64
LTM Dividend per Share0.280.280.28
(+) Excess Retained per Share1.381.541.64
(=) Adjusted Dividend1.661.821.92
WACC / Discount Rate9.10%9.10%9.10%
Growth Rate5.50%6.50%7.50%
Fair Value$48.81$74.64$129.49
Upside / Downside-29.06%8.47%88.18%

Multi-Stage Model: Projections

(USD in Millions)
MetricTTMDec-27Dec-28Dec-29Dec-30Dec-31Terminal
Net Income (M)917.00976.611,040.081,107.691,179.691,256.371,294.06
Payout Ratio13.63%28.91%44.18%59.45%74.73%90.00%92.50%
Projected Dividends (M)125.00282.29459.50658.55881.541,130.731,197.01

Multi-Stage Valuation

MetricLOWBASEHIGH
WACC / Discount Rate9.10%9.10%9.10%
Growth Rate5.50%6.50%7.50%
Year 1 PV (M)256.32258.75261.18
Year 2 PV (M)378.84386.06393.34
Year 3 PV (M)493.00507.15521.57
Year 4 PV (M)599.22622.26645.97
Year 5 PV (M)697.90731.60766.60
PV of Terminal Value (M)12,115.4412,700.6213,308.20
Equity Value (M)14,540.7115,206.4415,896.86
Shares Outstanding (M)440.68440.68440.68
Fair Value$33.00$34.51$36.07
Upside / Downside-52.05%-49.85%-47.58%

High-Yield Dividend Screener

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