We publish no single base value for Interactive Brokers. Our valuation methods put it between $48.97 and $666.92 a share. The valuation code's reason: no point fair value: the two anchors behind it compound the same growth rate and differ only in how they end — a perpetuity at the terminal rate against a multiple on the final year — so the midpoint between them measures terminal treatment rather than what the business is worth. The published range is the same reading with the false precision removed: read it as the span the method supports, and treat neither edge as a point estimate.
| Method | Value | vs price | Basis |
|---|---|---|---|
| Discounted cash flow | $666.92 | +720.0% | free cash flow $12.18bn, growth 13.5% for 5 years, then fading to 3% over 5 more, discounted at 10.57%; stress floor $354.71 |
| Exit multiple (P/E) | $48.97 | -39.8% | earnings per share $2.70 valued at 20.15× (the stock's own median P/E) in 5 years, discounted back |
| Sum of the parts | — | — | no sum of the parts: this run holds no segment disclosure for the name |
| Price to sales | — | — | not reached: the cash-flow or earnings methods produced an anchor, so this fallback was not run |
| Tangible book | — | — | used only for lenders, where book value is the business |
| Price to FFO (REITs) | — | — | used only for REITs |
Each working is rebuilt by code from the valuation's own figures and checked against the published value.
The discount rate:
| Risk-free rate | 5.13% (10-year US Treasury yield) |
| Company's own beta | 1.37 (5 years of monthly returns against the S&P 500; standard error 0.24) |
| Peer beta | 1.23 (median of 5 S&P 500 Investment Banking & Brokerage companies) |
| Blend of own and peers | 1.31 (56% own, 44% peers, weighted by how precisely the company's own beta is measured) |
| Adjusted beta | 1.21 (0.67 × 1.31 + 0.33, pulled toward the market's 1.0) |
| Equity risk premium | 4.5% |
| Discount rate = risk-free + adjusted beta × premium | 10.57% |
Free cash flow grows 13.50% a year for 5 years, then fades in equal steps toward 3% over 5 more; each year is discounted by 1 ÷ (1 + rate)^year:
| Year | Growth | Free cash flow | Discount factor | Present value |
|---|---|---|---|---|
| Now | — | $12.18bn | — | — |
| Year 1 | 13.50% | $13.83bn | 0.9044 | $12.51bn |
| Year 2 | 13.50% | $15.70bn | 0.8179 | $12.84bn |
| Year 3 | 13.50% | $17.81bn | 0.7397 | $13.18bn |
| Year 4 | 13.50% | $20.22bn | 0.6689 | $13.53bn |
| Year 5 | 13.50% | $22.95bn | 0.6049 | $13.88bn |
| Year 6 | 11.75% | $25.65bn | 0.5471 | $14.03bn |
| Year 7 | 10.00% | $28.21bn | 0.4948 | $13.96bn |
| Year 8 | 8.25% | $30.54bn | 0.4474 | $13.66bn |
| Year 9 | 6.50% | $32.52bn | 0.4047 | $13.16bn |
| Year 10 | 4.75% | $34.07bn | 0.3660 | $12.47bn |
| Terminal value = year-10 cash flow × (1 + 3%) ÷ (10.57% − 3%) | $463.23bn |
| Terminal value in today's money | $169.52bn |
| Present value of years 1–10 | $133.21bn |
| Total present value | $302.73bn |
| Shares outstanding | 453.92m |
| Value per share = total ÷ shares | $666.92 |
How the DCF value moves with the discount rate and the starting growth (the middle cell is the published value):
| Discount rate | Growth 8.5% | Growth 13.5% | Growth 18.5% |
|---|---|---|---|
| 9.57% | — | $779.84 | $1,039.53 |
| 10.57% | $501.24 | $666.92 | $884.01 |
| 11.57% | $439.28 | — | $765.67 |
The same DCF at each beta, starting growth unchanged:
| Beta | Value | Discount rate | DCF value |
|---|---|---|---|
| Company's own beta | 1.37 | 11.30% | $602.79 |
| Peer beta | 1.23 | 10.66% | $658.23 |
| Adjusted beta (used) | 1.21 | 10.57% | $666.92 |
Earnings per share grow on the same fading path as the DCF:
| Year | Growth | Earnings per share |
|---|---|---|
| Now | — | $2.70 |
| Year 1 | 13.50% | $3.07 |
| Year 2 | 9.82% | $3.37 |
| Year 3 | 7.44% | $3.62 |
| Year 4 | 5.88% | $3.83 |
| Year 5 | 4.87% | $4.02 |
| Earnings per share in year 5 | $4.02 |
| Exit P/E (the stock's own median P/E) | 20.15× |
| Value in 5 years = earnings × P/E | $80.95 |
| Discounted at 10.57% over 5 years: ÷ 1.6530 | $48.97 |
We publish no single base value for Interactive Brokers. Our valuation methods put it between $48.97 and $666.92 a share. The valuation code's reason: no point fair value: the two anchors behind it compound the same growth rate and differ only in how they end — a perpetuity at the terminal rate against a multiple on the final year — so the midpoint between them measures terminal treatment rather than what the business is worth. The published range is the same reading with the false precision removed: read it as the span the method supports, and treat neither edge as a point estimate.
One-year price simulation: a 10% chance the price is below $46.80 and a 10% chance it is above $143.49 in a year; a 51% chance it is higher than today's $81.33, from 43.49% volatility. The simulation assumes the price drifts up at our discount rate of 10.57% a year.
At $81.33 the price implies free cash flow growing -23.5% a year for five years and then fading toward 3% over five more; its revenue has grown 13.5%.
| Week | Price | Base value |
|---|---|---|
| 2 Oct 2026 | $88.30 | $44.61 |
| 9 Oct 2026 | $87.87 | $44.49 |
| 16 Oct 2026 | $82.69 | $51.70 |
| 23 Oct 2026 | $80.28 | $49.39 |
| 30 Oct 2026 | $76.90 | $49.46 |
| 6 Nov 2026 | $75.82 | — |
| 12 Nov 2026 | $81.33 | — |
Data as of 12 Nov 2026; financials to 30 Sep 2026. Sources: company filings via EODHD, SEC EDGAR, US Treasury. How these values are computed. Not investment advice.
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