Interactive Brokers - Comparative Multiple Analysis

Interactive Brokers (Comparative Multiple Analysis)


Notes on the Comparative Multiple Analysis of Interactive Brokers

WikiWealth compares Interactive Brokers's revenue, EBITDA, and EBIT multiples to their peers in order to determine the appropriate fair valuation. Click in the top right corner to experiment with Interactive Brokers's comparative analysis.

Notes from the analysis:

1. WikiWealth uses quantitative measures to determine the multiple range for Interactive Brokers.
2. Free cash flow to the firm (FCF) multiple is free cash flow to equity holders plus interest owed to Interactive Brokers's debt holders.
3. Multiples incorporate benefits due to economies of scale; WikiWealth compares absolute enterprise value multiples to competitor's multiples.
4. WikiWealth excludes outliers when calculating individual company multiples.

Helpful Information for Interactive Brokers's Analysis

How does this work? The Comparative Investment Analysis determines the value of Interactive Brokers by comparing Interactive Brokers financial ratios, prices, growth rates, margins, etc. to those of relevant peer groups.

Value Investing Importance? This method is widely used by investment professionals to determine the correct price of investments, especially initial public offerings (IPOs). It is one element of WikiWealth's three Wall Street approaches used to determine the correct fair value of Interactive Brokers.

See the Interactive Brokers cash flow (DCF) analysis for a completely different approach that's popular on Wall Street for determining the value of an investment in Interactive Brokers.

Also, see the Interactive Brokers's buffett intrinsic valuation analysis for WikiWealth's attempt to replicate the investing formula's used by Warren Buffett and Interactive Brokers's valuation conclusion for a quick summary.