Interactive Brokers Operating Margin vs. Current Valuation
| IBKR Stock | USD 191.31 1.64 0.85% |
Interactive Brokers Operating Profit Margin |
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| Current Value | Last Year | Change From Last Year | 10 Year Trend | ||||||
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| Gross Profit Margin | 0.63 | 0.71 |
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| Net Profit Margin | 0.13 | 0.1357 |
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| Operating Profit Margin | 0.77 | 0.809 |
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| Pretax Profit Margin | 0.44 | 0.6943 |
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| Return On Assets | 0.0044 | 0.0047 |
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| Return On Equity | 0.14 | 0.1674 |
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For Interactive Brokers profitability analysis, we use financial ratios and fundamental drivers that measure the ability of Interactive Brokers to generate income relative to revenue, assets, operating costs, and current equity. These fundamental indicators attest to how well Interactive Brokers Group utilizes its assets to generate profit and value for its shareholders. The profitability module also shows relationships between Interactive Brokers's most relevant fundamental drivers. It provides multiple suggestions of what could affect the performance of Interactive Brokers Group over time as well as its relative position and ranking within its peers.
Interactive |
Interactive Brokers' Revenue Breakdown by Earning Segment
Check out Risk vs Return Analysis.
Is Investment Banking & Brokerage space expected to grow? Or is there an opportunity to expand the business' product line in the future? Factors like these will boost the valuation of Interactive Brokers. If investors know Interactive will grow in the future, the company's valuation will be higher. The financial industry is built on trying to define current growth potential and future valuation accurately. All the valuation information about Interactive Brokers listed above have to be considered, but the key to understanding future value is determining which factors weigh more heavily than others.
Quarterly Earnings Growth 0.071 | Dividend Share 0.7 | Earnings Share 6.43 | Revenue Per Share 45.917 | Quarterly Revenue Growth 0.153 |
The market value of Interactive Brokers is measured differently than its book value, which is the value of Interactive that is recorded on the company's balance sheet. Investors also form their own opinion of Interactive Brokers' value that differs from its market value or its book value, called intrinsic value, which is Interactive Brokers' true underlying value. Investors use various methods to calculate intrinsic value and buy a stock when its market value falls below its intrinsic value. Because Interactive Brokers' market value can be influenced by many factors that don't directly affect Interactive Brokers' underlying business (such as a pandemic or basic market pessimism), market value can vary widely from intrinsic value.
Please note, there is a significant difference between Interactive Brokers' value and its price as these two are different measures arrived at by different means. Investors typically determine if Interactive Brokers is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, Interactive Brokers' price is the amount at which it trades on the open market and represents the number that a seller and buyer find agreeable to each party.
Interactive Brokers Current Valuation vs. Operating Margin Fundamental Analysis
Comparative valuation techniques use various fundamental indicators to help in determining Interactive Brokers's current stock value. Our valuation model uses many indicators to compare Interactive Brokers value to that of its competitors to determine the firm's financial worth. Interactive Brokers Group is currently regarded as number one stock in operating margin category among its peers. It also is considered the number one company in current valuation category among its peers reporting about 26,175,013,799 of Current Valuation per Operating Margin. At this time, Interactive Brokers' Operating Profit Margin is relatively stable compared to the past year. Comparative valuation analysis is a catch-all technique that is used if you cannot value Interactive Brokers by discounting back its dividends or cash flows. It compares the stock's price multiples to nearest competition to determine if the stock is relatively undervalued or overvalued.Interactive Current Valuation vs. Operating Margin
Operating Margin shows how much operating income a company makes on each dollar of sales. It is one of the profitability indicators which helps analysts to understand whether the firm is successful or not making money from everyday operations.
Interactive Brokers |
| = | 0.66 % |
A good Operating Margin is required for a company to be able to pay for its fixed costs or payout its debt, which implies that the higher the margin, the better. This ratio is most effective in evaluating the earning potential of a company over time when comparing it against a firm's competitors.
Enterprise Value is a firm valuation proxy that approximates the current market value of a company. It is typically used to determine the takeover or merger price of a firm. Unlike Market Cap, this measure takes into account the entire liquid asset, outstanding debt, and exotic equity instruments that the company has on its balance sheet. When a takeover occurs, the parent company will have to assume the target company's liabilities but will take possession of all cash and cash equivalents.
Interactive Brokers |
| = | 17.27 B |
Enterprise Value can be a useful tool to compare companies with different capital structures. Long term liability and current cash or cash equivalents can have a huge impact on market valuation of a given company.
Interactive Current Valuation vs Competition
Interactive Brokers Group is considered the number one company in current valuation category among its peers. After adjusting for long-term liabilities, total market size of Financials industry is currently estimated at about 69.75 Billion. Interactive Brokers totals roughly 17.27 Billion in current valuation claiming about 25% of equities under Financials industry.
Interactive Brokers Profitability Projections
The most important aspect of a successful company is its ability to generate a profit. For investors in Interactive Brokers, profitability is also one of the essential criteria for including it into their portfolios because, without profit, Interactive Brokers will eventually generate negative long term returns. The profitability progress is the general direction of Interactive Brokers' change in net profit over the period of time. It can combine multiple indicators of Interactive Brokers, where stable trends show no significant progress. An accelerating trend is seen as positive, while a decreasing one is unfavorable. A rising trend means that profits are rising, and operational efficiency may be rising as well. A decreasing trend is a sign of poor performance and may indicate upcoming losses.
| Last Reported | Projected for Next Year | ||
| Accumulated Other Comprehensive Income | 8 M | 7.6 M | |
| Operating Income | 3.6 B | 3.4 B | |
| Income Before Tax | 3.1 B | 3.2 B | |
| Total Other Income Expense Net | -507 M | -532.4 M | |
| Net Income | 600 M | 630 M | |
| Income Tax Expense | 257 M | 269.9 M | |
| Net Income Applicable To Common Shares | 342 M | 359.1 M | |
| Net Income From Continuing Ops | 2.8 B | 1.6 B | |
| Net Interest Income | -3.4 B | -3.3 B | |
| Interest Income | 1.6 B | 1.3 B | |
| Change To Netincome | -14.9 B | -14.1 B | |
| Net Income Per Share | 5.72 | 8.17 | |
| Income Quality | 7.57 | 7.39 | |
| Net Income Per E B T | 0.20 | 0.19 |
Interactive Profitability Driver Comparison
Profitability drivers are factors that can directly affect your investment outlook on Interactive Brokers. Investors often realize that things won't turn out the way they predict. There are maybe way too many unforeseen events and contingencies during the holding period of Interactive Brokers position where the market behavior may be hard to predict, tax policy changes, gold or oil price hikes, calamities change, and many others. The question is, are you prepared for these unexpected events? Although some of these situations are obviously beyond your control, you can still follow the important profit indicators to know where you should focus on when things like this occur. Below are some of the Interactive Brokers' important profitability drivers and their relationship over time.
Use Interactive Brokers in pair-trading
One of the main advantages of trading using pair correlations is that every trade hedges away some risk. Because there are two separate transactions required, even if Interactive Brokers position performs unexpectedly, the other equity can make up some of the losses. Pair trading also minimizes risk from directional movements in the market. For example, if an entire industry or sector drops because of unexpected headlines, the short position in Interactive Brokers will appreciate offsetting losses from the drop in the long position's value.Interactive Brokers Pair Trading
Interactive Brokers Group Pair Trading Analysis
The ability to find closely correlated positions to Interactive Brokers could be a great tool in your tax-loss harvesting strategies, allowing investors a quick way to find a similar-enough asset to replace Interactive Brokers when you sell it. If you don't do this, your portfolio allocation will be skewed against your target asset allocation. So, investors can't just sell and buy back Interactive Brokers - that would be a violation of the tax code under the "wash sale" rule, and this is why you need to find a similar enough asset and use the proceeds from selling Interactive Brokers Group to buy it.
The correlation of Interactive Brokers is a statistical measure of how it moves in relation to other instruments. This measure is expressed in what is known as the correlation coefficient, which ranges between -1 and +1. A perfect positive correlation (i.e., a correlation coefficient of +1) implies that as Interactive Brokers moves, either up or down, the other security will move in the same direction. Alternatively, perfect negative correlation means that if Interactive Brokers moves in either direction, the perfectly negatively correlated security will move in the opposite direction. If the correlation is 0, the equities are not correlated; they are entirely random. A correlation greater than 0.8 is generally described as strong, whereas a correlation less than 0.5 is generally considered weak.
Correlation analysis and pair trading evaluation for Interactive Brokers can also be used as hedging techniques within a particular sector or industry or even over random equities to generate a better risk-adjusted return on your portfolios.Use Investing Themes to Complement your Interactive Brokers position
In addition to having Interactive Brokers in your portfolios, you can quickly add positions using our predefined set of ideas and optimize them against your very unique investing style. A single investing idea is a collection of funds, stocks, ETFs, or cryptocurrencies that are programmatically selected from a pull of investment themes. After you determine your investment opportunity, you can then find an optimal portfolio that will maximize potential returns on the chosen idea or minimize its exposure to market volatility.Did You Try This Idea?
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Additional Tools for Interactive Stock Analysis
When running Interactive Brokers' price analysis, check to measure Interactive Brokers' market volatility, profitability, liquidity, solvency, efficiency, growth potential, financial leverage, and other vital indicators. We have many different tools that can be utilized to determine how healthy Interactive Brokers is operating at the current time. Most of Interactive Brokers' value examination focuses on studying past and present price action to predict the probability of Interactive Brokers' future price movements. You can analyze the entity against its peers and the financial market as a whole to determine factors that move Interactive Brokers' price. Additionally, you may evaluate how the addition of Interactive Brokers to your portfolios can decrease your overall portfolio volatility.