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A Look At Interactive Brokers Group (IBKR) Valuation After Earnings Beat And Coinbase Crypto Partnership
Interactive Brokers Group, Inc. Class A IBKR | 73.62 | -1.71% |
Interactive Brokers Group (IBKR) has been in focus after reporting revenues and earnings per share that topped consensus estimates, alongside a partnership with Coinbase that broadens its cryptocurrency trading access for clients.
Beyond the earnings beat and crypto partnership, Interactive Brokers’ share price has gained 13.21% over the past 90 days and 11.19% year to date. Its 1 year total shareholder return of 28.39% and 5 year total shareholder return above 300% indicate momentum that longer term holders have already experienced.
If this mix of trading technology and digital assets interests you, it could be a good moment to scan the broader market with our 17 cryptocurrency and blockchain stocks and see what else stands out.
With IBKR trading at $74.75 against an average analyst price target of $80.67, the current setup leaves a modest gap. For potential new buyers, this may represent a cushion, although it could also reflect expectations that the market has already incorporated available information about future prospects.
Most Popular Narrative: 395.7% Overvalued
According to the most followed narrative, Interactive Brokers Group’s fair value of $15.08 sits far below the recent $74.75 share price, creating a wide valuation gap that hinges on how its profitability story is framed.
Earnings Show Exceptional Profitability
Interactive Brokers (NASDAQ: IBKR) reported another standout quarter, reinforcing its position as one of the most operationally efficient brokerages in global finance. For Q3 2025, the company posted GAAP net revenues of $1.655 billion, up from $1.365 billion in the same quarter last year. Adjusted net revenues totaled $1.61 billion. GAAP diluted earnings per share rose to $0.59, compared to $0.42 a year earlier. Most strikingly, the firm delivered a pre-tax profit margin of approximately 79 percent, a level rarely matched in the industry, and more than double that of many legacy brokers.
If you want to see what kind of revenue growth, margin strength, and future earnings multiple underpin that low fair value, the narrative lays out a full set of assumptions, from cash flow resilience to what happens if today’s exceptional profitability does not hold up the same way over time.
Result: Fair Value of $15.08 (OVERVALUED)
However, if margins compress as interest rates change or trading volumes soften, the assumptions behind that low fair value could start to look too harsh.
Build Your Own Interactive Brokers Group Narrative
If you would rather weigh the numbers yourself and walk through your own assumptions step by step, you can build a personalised Interactive Brokers view in minutes: Do it your way.
A great starting point for your Interactive Brokers Group research is our analysis highlighting 2 key rewards and 1 important warning sign that could impact your investment decision.
Looking for more investment ideas?
If you are weighing what to do next after reviewing Interactive Brokers, do not stop here, you could be skipping opportunities that better fit your goals.
- Spot potential bargains early by scanning our list of screener containing 23 high quality undiscovered gems that pair strong fundamentals with lower market attention.
- Focus on quality at a sensible price by checking out the 53 high quality undervalued stocks that match solid cash flows with disciplined balance sheets.
- Target reliable income streams by reviewing our hand picked 13 dividend fortresses that may appeal if regular payouts matter to you.
This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.


