Interactive Brokers Group, Inc. (IBKR) Discounted Free Cash Flow - Perpetuity - 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.

Discounted Free Cash Flow Model

Discounted Free Cash Flow calculates the value of a share based on the company's estimated future Free Cash Flow figures.

See our GitHub Model Documentation

Interactive Assumptions

Discount Rate

Discount Rate

Discount Rate = Equity Weight * Cost of Equity + Debt Weight * Cost of Debt * (1 - Tax Rate)

Calculated using Weighted Average Cost of Capital (WACC) formula. It represents a firm’s average after-tax cost of capital from all sources, including common stock, preferred stock, bonds, and other forms of debt.

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Cost of Equity

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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Cost of Debt

Cost of Debt = Interest Expense / Total Debt

The cost of debt is the effective rate that a company pays on its debt, such as bonds and loans.

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Equity & Debt Weights

Debt Weight = Total Debt / (Market Capitalization + Total Debt) = 1 - Equity Weight

The Equity Weight represents the proportion of equity-based financing (Market Capitalization), while the Debt Weight represents the proportion of debt-based financing (Total Debt).


Tax Rate

Tax Rate = Income Tax Expense / Income Before Tax

The overall tax rate paid by the company on its earned income.

↳ Beta

Beta

Beta measures the volatility of a stock's price in relation to the overall stock market. A higher beta indicates greater price fluctuations relative to the market.

↳ Risk Free Rate

Risk-Free Rate

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

↳ Market Premium

Market Premium

The market risk premium represents the additional return over the risk-free rate that investors expect for taking on the risks associated with equities.

Growth In Perpetuity

Growth in Perpetuity

The rate at which the company's free cash flow is assumed to grow indefinitely. By default, this rate equals the yield of the U.S. 10-Year Treasury Bond.

Historical Years

Historical Years

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

Projection Years

Projection Years

The number of years into the future for which the analysis projects financial performance and metrics.

Revenue Growth Rate

Revenue Growth Rate

The annual growth rate applied to projected revenue, starting from the second projection year onward.

Operating Cash Flow Margin

Operating Cash Flow Margin

Projected Operating Cash Flow = Projected Revenue * Operating Cash Flow Margin

This margin represents the percentage of revenue used to estimate future Operating Cash Flow.

Capital Expenditure Margin

Capital Expenditure Margin

Projected Free Cash Flow = Projected Operating Cash Flow - Projected Revenue * Capital Expenditure Margin

This margin is used to estimate future capital expenditures as a percentage of revenue, which in turn is subtracted from Operating Cash Flow to calculate Free Cash Flow.

Results

Terminal Value 66.82 Bil. USD
Discounted Terminal Value 29.35 Bil. USD
Sum of Discounted Free Cash Flow 21.21 Bil. USD
Enterprise Value 50.56 Bil. USD
Cash and Equivalents 3.5 Bil. USD
Total Debt 12 Mil. USD
Equity Value 54.05 Bil. USD
Shares Outstanding 435.7 Mil. USD
Estimated Value per Share 124 USD
Yield of the U.S. 10 Year Treasury Note 4.35%
Average Cash from Operating Activities Margin 140.2%
Average Capital Expenditure Margin 1.95%
Cost of Equity 9.78%
Equity Weight 99.95%
Cost of Debt 18,580%
Debt Weight 0.047%
Tax Rate 7.93%

Monetary values are in USD

Edit Chart Values 2025 2026 2027 2028 2029

amounts of USD except for #

2024 2025 2026 2027 2028 2029
Revenue 5,185 4,798 5,590 6,514 7,590 8,844
Revenue Growth Rate 17.31% -7.47% 16.52% 16.52% 16.52% 16.52%
Operating Cash Flow 8,724 4,798 5,590 6,514 7,590 8,844
Operating Cash Flow Margin 168.3% 100% 100% 100% 100% 100%
Capital Expenditure -49 -93.7 -109.2 -127.2 -148.2 -172.7
Capital Expenditure Margin -0.945% -1.95% -1.95% -1.95% -1.95% -1.95%
Free Cash Flow 8,675 4,704 5,481 6,386 7,441 8,671
Free Cash Flow Margin 167.3% 98.05% 98.05% 98.05% 98.05% 98.05%
Compounded Discount Rate
8.31% 27.68% 50.53% 77.54% 109.3%
Discounted Free Cash Flow 8,675 4,343 4,293 4,243 4,192 4,143

amounts of USD except for #

Average LTM 2024 2023 2022 2021 2020 2019 2018 2017 2016 2015
Revenue 2,950 6,360 5,185 4,420 3,167 2,751 2,237 1,997 1,922 1,581 1,436 1,395
Revenue Growth Rate 16.52% 22.66% 17.31% 39.56% 15.12% 22.98% 12.02% 3.9% 21.57% 10.1% 2.94% 13.6%
Cost of Revenue
0 0 0 0 0 0 0 0 0 0 0
Gross Profit 2,950 6,360 5,185 4,420 3,167 2,751 2,237 1,997 1,922 1,581 1,436 1,395
Gross Margin 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100%
Operating Income 2,239 4,272 4,181 3,576 2,455 2,093 1,698 1,493 1,509 1,222 1,075 1,057
Operating Margin 76.31% 67.17% 80.64% 80.9% 77.52% 76.08% 75.91% 74.76% 78.51% 77.29% 74.86% 75.77%
Net Income 324.5 793 755 600 380 308 195 161 169 76 84 49
Net Margin 9.41% 12.47% 14.56% 13.57% 12% 11.2% 8.72% 8.06% 8.79% 4.81% 5.85% 3.51%
Cash from Operating Activities 4,388 9,625 8,724 4,544 3,968 5,896 8,068 2,666 2,356 1,065 635 725
Cash from Operating Activities Margin 140.2% 151.3% 168.3% 102.8% 125.3% 214.3% 360.7% 133.5% 122.6% 67.36% 44.22% 51.97%
Capital Expenditure -49.27 -53 -49 -49 -69 -77 -50 -74 -36 -28 -27 -30
Free Cash Flow 4,339 9,572 8,675 4,495 3,899 5,819 8,018 2,592 2,320 1,037 608 695
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Discounting Cash Flows

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