IBKR · sample dossier
Interactive Brokers Group, Inc. Class A Common Stock
53/100
OutdatedGenerated Oct 10, 2026 · 10:00 AM UTC · 3 hours ago
This copy is frozen (Oct 10). Sign in to run the same work — filings, valuation, bull and bear, sources — on any US stock or ETF, in about 90 seconds.
Run a fresh dossierIBKR
EquityInteractive Brokers Group, Inc. Class A Common StockXNAS
Decision context
HOLD
58% convictionScore 53 · Hold
A mixed picture — no strong reason to buy or sell right now.
The stock trades 21.3% above our estimate.
Current price
$87.87
Estimated value range
$60.36 – $84.37
Gap vs AlphaDog estimate
-21.3%
Narrow evidence — range rests on a single usable method.
The price is above our estimate, providing little valuation support.
Market context
Price
Price when available
Pick how far back the chart looks
1 month
-1.7%
3 months
-6.1%
6 months
+23.4%
1 year
+22.0%
Financial trajectory
Executive summary & thesis
Interactive Brokers Group, Inc. operates an automated global electronic brokerage platform with a market capitalization of $149.71B and a gross margin of 93.0%.
- EPS expanded 35.3% YoY in the latest quarter alongside 21.3% revenue growth.
- Free cash flow per share reached $35.02 with an exceptional gross margin of 93.0%.
- Momentum over longer horizons remains positive with a 23.4% 6-month return and a 22.0% 1-year return.
- Financial leverage is high with a Debt/Equity ratio of 2.06, increasing balance sheet risk.
- Valuation is elevated with a P/E ratio of 34.87 and Price/Book of 6.71.
- Near-term price momentum has softened, down 6.1% over 3 months and trading below the MA50.
Things to keep in mind
- 1Base target implies 21.3% downsideView source
- 2P/E 34.9xView source
- 3Debt/Equity 2.06View source
What to watch next
Factor profile
Growth-led profile
| Factor | Score |
|---|---|
| Quality | 67 out of 100 (Neutral). Business health — profits, returns, and consistency. Higher means a more durable company. |
| Growth | 77 out of 100 (Strong). How fast sales and earnings are rising. Higher means the business is expanding faster. |
| Value | 37 out of 100 (Weak). How cheap the stock looks for what you get. Higher means a more attractive price. |
| Safety | 20 out of 100 (Weak). Balance-sheet cushion and fewer red flags. Higher means less risk of a nasty surprise. |
| Momentum | 62 out of 100 (Neutral). Recent share-price trend. Higher means buyers have been in control lately. |
Another way to look at it
A calmer look at both sides of the IBKR story
The prevailing consensus awards IBKR an unsustainable growth premium, celebrating quarterly revenue of $3.00B and 35.3% YoY EPS growth while ignoring dangerous multiple stretching against structural balance sheet leverage.
At a P/E of 34.87 and Price/Book of 6.71, IBKR trades at a massive premium to peers like LPLA at 26.3, despite generating an ROA of merely 2.3%. Bulls tout the headline 93.0% gross margin but overlook that net margins fall to 16.5%, highlighting heavy fixed operating and funding overhead required to support a Debt/Equity ratio of 2.06. Price action is already diverging from consensus optimism, with the stock down 6.1% over three months and trading below its 50-day moving average. Extrapolating cyclical volume surges onto a 34.9x multiple leaves equity holders highly vulnerable to rapid multiple compression.
An ROA of 2.3% paired with a Debt/Equity of 2.06 demonstrates high balance-sheet intensity and funding sensitivity that could compress net interest income if rate spreads shift.
A massive 76.5 percentage point drop from 93.0% gross margin to 16.5% net margin is unexamined, exposing earnings vulnerability to fixed overhead if trading volumes slow.
The bear debate focused almost entirely on a stale April 15, 2025 stock split filing rather than evaluating IBKR's valuation premium of 34.87 P/E relative to peer LPLA at 26.3.
Extrapolating 35.3% quarterly EPS growth and 21.3% revenue expansion into perpetuity to justify a 34.87 P/E multiple treats cyclical brokerage transaction volumes as permanent secular growth.
Consensus overweights insider alignment based on a single $70.71M purchase by the Vice Chairman on 2026-07-31 while other recorded transactions represent symbolic 25-share blocks.
Demanding a Price/Book multiple of 6.71 for an institution delivering an ROA of just 2.3% requires uninterrupted balance-sheet expansion that cannot be sustained at a Debt/Equity of 2.06.
Revenue Growth (Latest Quarter YoY) drops below 21.3%.
Debt/Equity ratio expands above 2.06.
Cash after investing
Cash-flow details are thin for IBKR — check the Financials tab when you can.
- Revenue Growth (Latest Quarter YoY) drops below 21.3%.
- Debt/Equity ratio expands above 2.06.
- Debt/Equity improves from 2.06 or refinancing risk falls
For learning and research only — not investment advice. AlphaDog doesn’t hold stocks and isn’t your financial advisor.
Run the next one yourself.
You just read a full IBKR dossier — scored verdict, valuation, and both sides, with sources. Sign in to run that on a name you hold, on current filings. A free account includes 10 credits a week, 1 per fresh run.