Interactive Brokers Group, Inc. (IBKR) Two-Stage Dividend Discount Model - Discounting Cash Flows
IBKR
Interactive Brokers Group, Inc.
IBKR (NASDAQ)

Estimated Value

USD

Market Price USD

* Values are not guaranteed, please do your own
research before making investment decisions.

Two-Stage Dividend Discount Model

Used to estimate the value of companies based on two stages of growth. An initial period of high growth, calculated using [Sum of Discounted Dividends], followed by a period of stable growth, calculated using [Discounted Terminal Value].

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Interactive Assumptions

Discount Rate

Discount Rate

Discount Rate = Cost of Equity = Risk Free Rate + Beta * Market Premium

The cost of equity is the theoretical rate of return that an equity investment should generate. It is calculated using the CAPM formula.

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↳ Beta

Beta

Beta is a value that measures the price fluctuations (volatility) of a stock with respect to fluctuations in the overall stock market.

↳ Risk Free Rate

Risk-Free Rate

The risk-free rate represents the interest an investor would expect from an absolutely risk-free investment over a specified period of time. By default, it is equal to the current yield of the U.S. 10 Year Treasury Bond.

↳ Market Premium

Market Premium

Market risk premium represents the excess returns over the risk-free rate that investors expect for taking on the incremental risks connected to the equities market.

High Growth Years

High Growth Years

The estimated number of years during which the company is expected to experience high growth. After this period, the company will transition to a stable growth phase.

Historical Years

Historical Years

The number of historical years used to calculate averages for historical data.

High Growth Rate

High Growth Rate

The estimated growth rate of Earnings Per Share (EPS) during the high-growth phase.

High Growth Payout

High Growth Payout

The estimated dividend payout rate expressed as a percentage of Earnings Per Share (EPS) during the high-growth phase.

Stable Growth In Perpetuity

Stable Growth in Perpetuity

The estimated stable rate at which the company's Earnings Per Share (EPS) will grow in perpetuity after the last projected period.

Stable Payout

Stable Payout

The estimated dividend payout rate expressed as a percentage of Earnings Per Share (EPS) after the last projected period.

Results

Sum of discounted dividends 5.99 USD
Discounted terminal value 19.78 USD
Terminal value 31.53 USD
Dividend in stable phase 1.71 USD
EPS in stable phase 2.46 USD
Average historical Dividend Growth Rate 10.01%
Average historical Payout Ratio 81.53%
Average historical Return on Equity 14.34%

Historical and Projected Dividends

Monetary values are in USD

Edit Chart Values 2025 2026 2027 2028 2029

amounts of USD except for #

2024 LTM 2025 2026 2027 2028 2029
Earnings Per Share 1.74 1.82 1.61 1.77 1.94 2.14 2.35
Dividend per Share 0.85 0.83 1.31 1.44 1.58 1.74 1.92
Dividend Growth Rate 112.5% -2.35% 54.08% 10.01% 10.01% 10.01% 10.01%
Discounted Dividend 0.85 0.83 1.19 1.2 1.2 1.2 1.2

amounts of USD except for #

Average LTM 2024 2023 2022 2021 2020 2019 2018 2017 2016 2015
Net Income 324.5 793 755 600 380 308 195 161 169 76 84 49
Equity 2,293 4,502 4,280 3,584 2,848 2,395 1,951 1,452 1,282 1,090 974 863
Return on Equity 14.34% 18.53% 21.07% 21.07% 15.87% 15.79% 13.43% 12.56% 15.5% 7.8% 9.73% 6.4%
Common Dividends 172.4 361.6 367.6 167.9 160.7 150.7 127.9 121.8 117.6 113.4 107.5 100
Payout Ratio 81.53% 45.48% 48.71% 27.97% 42.33% 48.93% 65.57% 75.47% 69.57% 146.8% 126% 200%
Shares Outstanding 344.3 435.7 432.4 419.9 401.8 376.7 319.8 304.5 293.9 283.6 268.8 250
Reference Market Price 21.47 57.98 44.17 20.73 18.09 19.86 15.23 11.66 13.66 14.8 9.13 10.9
EPS 0.842 1.82 1.74 1.43 0.945 0.818 0.61 0.53 0.575 0.272 0.318 0.2
Dividend per Share 0.48 0.83 0.85 0.4 0.4 0.4 0.4 0.4 0.4 0.4 0.4 0.4
Dividend Growth Rate 55.07% -2.35% 112.5% 0% 0% 0% 0% 0% 0% 0% 0% 0%
Dividend Yield 2.66% 1.43% 1.92% 1.93% 2.21% 2.01% 2.63% 3.43% 2.93% 2.7% 4.38% 3.67%
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Discounting Cash Flows

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