The market has it about right now with Interactive Brokers. The past?year saw an enormous rise in price in the firm, but is now trading at what we see as a scenario-weighted fair value in the low $30 range. The option market’s implied volatility also overlaps our valuation scenarios fairly well, meaning that without a large movement in the stock price one way or another, it would be hard for us to invest in the firm.
Download our IOI Tear Sheet on IBKR to learn the specific assumptions we used to generate our fair value estimate. You may also want to download the IOI Tear Sheet User’s Guide, which explains the various sections of this one-page investment summary.