Using the industry peer median P/E multiple (trailing + forward), Interactive Brokers Group, Inc. (IBKR) has a fair value of $50.28 based on 6 comparable companies in the Investment - Banking & Investment Services industry.
USD in millions except Fair Price. Subject company highlighted.
| Mkt Cap ($M) | Trailing P/E | Forward P/E | |
|---|---|---|---|
| Interactive Brokers Group, Inc.IBKR | 29,653 | 29.8x | 31.1x |
| Bank of America CorporationBAC | 353,404 | 12.7x | 12.7x |
| Chubb LimitedCB | 126,579 | 12.6x | 14.7x |
| CME Group Inc.CME | 107,954 | 26.9x | 24.9x |
| Intercontinental Exchange, Inc.ICE | 89,170 | 27.1x | 20.3x |
| KKR & Co. Inc.KKR | 80,877 | 38.8x | 18.4x |
| Robinhood Markets, Inc.HOOD | 63,179 | 34.2x | 30.1x |
| Industry Median | 27.0x | 19.3x | |
| (*) Profit after tax | 984 | 955 | |
| Equity Value | 26,573 | 18,466 | |
| (/) Outstanding shares | 448 | 448 | |
| Fair Price | $59 | $41 | |
This P/E relative valuation uses the industry peer median Price-to-Earnings ratio to estimate fair value. Both trailing (last 12 months) and forward (next fiscal year analyst estimates) P/E multiples are computed independently.
The industry median trailing P/E is applied to the company's TTM net income, and the forward P/E to analyst-estimated net income. Each produces an equity value divided by shares outstanding to yield a fair price per share. The selected fair value is the average of the trailing and forward legs.