Discounted Cash Flow

Interactive Brokers Group, Inc.

IBKR · Based on 10 years of SEC filings

Average annual growth rates

Metric 10-Year 5-Year 3-Year
Sales
Free Cash Flow
Average (FCF & NI)
Net Income

Average annual growth is the mean year-over-year change across each period.

Endpoint CAGR (better for long term trend)

Metric 10-Year 5-Year 3-Year
Sales
Free Cash Flow
Average (FCF & NI)
Net Income

Endpoint CAGR is the compound annual rate from the first to last year in each period.

Projections use average year-over-year growth. Change this in Settings.

Projected growth rate

Free cash flow growth
10-year: — 5-year: — 3-year: —
Averaged growth (FCF & NI)
10-year: — 5-year: — 3-year: —
Net income growth
10-year: — 5-year: — 3-year: —
Sales growth (not added to calculations)
10-year: — 5-year: — 3-year: —

Click a greyed-out slider to switch metrics. Slide between the 10-year, 5-year, and 3-year historic growth rates for FCF, net income, or their average.

%
%

Historical inputs (10 fiscal years)

YEAR Sales Net Income Free Cash Flow Net Margin EPS (diluted)
2016 $1.5b $84.0m $544.0m 5.7% $1.28
2017 $1.9b (30.6%) $76.0m (-9.5%) $142.0m (-73.9%) 3.9% (-30.7%) $1.09 (-14.8%)
2018 $925.0m (-52.0%) $169.0m (122.4%) $169.0m (19.0%) 18.3% (363.2%) $2.30 (111.0%)
2019 $847.0m (-8.4%) $161.0m (-4.7%) $161.0m (-4.7%) 19.0% (4.0%) $2.11 (-8.3%)
2020 $1.3b (51.9%) $195.0m (21.1%) $195.0m (21.1%) 15.2% (-20.3%) $2.44 (15.6%)
2021 $1.6b (21.8%) $308.0m (57.9%) $308.0m (57.9%) 19.6% (29.6%) $3.27 (34.0%)
2022 $1.5b (-4.0%) $380.0m (23.4%) $380.0m (23.4%) 25.2% (28.5%) $3.78 (15.6%)
2023 $1.6b (3.4%) $600.0m (57.9%) $4.5b (1082.9%) 38.5% (52.7%) $5.72 (51.3%)
2024 $2.0b (27.0%) $755.0m (25.8%) $755.0m (-83.2%) 38.2% (-0.9%) $6.99 (22.2%)
2025 $2.4b (23.4%) $984.0m (30.3%) $984.0m (30.3%) 40.3% (5.6%) $2.23 (-68.1%)

Base FCF: (latest fiscal year)

Discount rate: %

Terminal growth:

Projection period: years

Alt A decline yrs:

Alt B total yrs:

Values abbreviated: b = billions, m = millions, k = thousands.

Projected cash flows

Year Projected cash flow Discount Factor Present Value

PV of projected FCF:

Terminal FCF:

Terminal value:

PV of terminal value:

Enterprise value (DCF):

DCF price per share:

Current price:

Alternative DCF Models

Model Fair Value Upside PV(FCFs) PV(Terminal) Total Years
Standard (10yr→TV) 10 + TV
Alt A (Gradual Decline)
Alt B (30yr Hard Stop) N/A

This is a simplified DCF model for illustration. It uses reported free cash flow, a single growth assumption, fixed WACC, and a Gordon Growth terminal value. It is not investment advice.

+ 10YR Financials Balance Sheet (10YR) Cash Flow (10YR) DCF Model