Interactive Brokers Group Inc.
Interactive Brokers Group Inc. (NASDAQ: IBKR) is a global broker-dealer and proprietary trading company. IB provides institutional and professional traders direct access to trade execution and clearing services through its broker-dealer agency business. IB has operations in the United States, Canada, the United Kingdom, Ireland, Luxembourg, Switzerland, Hungary, India, China (Hong Kong and Shanghai), Japan, Singapore, and Australia.
Latest News:
Q1 FY22 Results:
Key Risks:
Valuation Methodology: Price/Earnings Per Share Multiple Based Relative Valuation
(Source: Analysis by Kalkine Group)
*% Premium/(Discount) is based on our assessment of the company’s FY1 trading multiple after considering its key growth drivers, economic moat, stock's historical trading multiples versus peer average/median, and investment risks.
Stock Recommendation:
Over the past six months, IBKR's share price has corrected by 26.90%. The stock is currently leaning towards the lower end of its 52-week range of USD 52.18 to USD 82.83.
We believe that the company is trading at a discount from its peer's average, considering its fall in revenue and profitability for the Q1 FY22, but strong fundamentals, competitive advantages in profitability margins, and a good cash position give bullish estimates for the upcoming near future. We have taken peers like Goldman Sachs Group Inc, Morgan Stanley, and Charles Schwab Corp for the evaluation of the intrinsic value.
Considering the strong fundamentals, robust margins, dividend yield, positive outlook, associated risks, and current valuation, we give a "Hold" recommendation on the stock at the closing price of USD 54.46 as of June 10, 2022.
1-Year Technical Price Chart (as of June 10, 202). Source: REFINITIV, Analysis by Kalkine Group
Note 1: The reference data in this report has been partly sourced from REFINITIV.
Note 2: Investment decision should be made depending on the investors' appetite on upside potential, risks, holding duration, and any previous holdings. Investors can consider exiting from the stock if the Target Price mentioned as per the valuation has been achieved and subject to the factors discussed above.
Note 3: The report publishing date is as per the Pacific Time Zone.
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