Secretive billionaire Thomas Peterffy has quietly become one of the world’s wealthiest people, surpassing Bill Gates, who was once the world’s richest person.

Peterffy’s net worth has jumped by $36 billion this year and now stands at over $113 billion. This makes him the 18th richest person in the world. His wealth is $11 billion higher than that of Bill Gates, who has lost $15 billion this year.

Interactive Brokers Stock Has Been in a Major Bull Run

Peterffy, 81, has seen his wealth surge this year because of the ongoing Interactive Brokers (NASDAQ:IBKR) stock bull run. It has jumped by 41% this year, beating the Nasdaq 100 Index, which has soared by 20%. 

It has also soared by nearly 500% in the last five years, bringing its market capitalization to over $162 billion. 

Most notably, the stock has beaten other top competitors, especially Robinhood (NASDAQ:HOOD), which has become popular among young people. HOOD has jumped by 207% in the last five years and is down by 6% this year.

It has also outperformed Charles Schwab, Webull, and Morgan Stanley, which acquired E*TRADE in a $13 billion deal.

Peterffy, who founded the electronic brokerage in 1978, owns about three-quarters of the company through IBG Holdings. 

IBKR Business Has Been Growing, But Valuation Concerns Persist

Interactive Brokers’ business has been firing on all cylinders, helped by the ongoing demand for financial assets like stocks and options. The most recent results showed that its revenue jumped to $1.67 billion in the first quarter, up by 17% from the same period last year.

This growth was driven by commissions, which rose by 19% to $613 million, while its net interest income increased by 17% to $904 million. Its customer count jumped by 31% to 4.13 million, while their equity rose by 38% to $789 billion. 

Analysts expect that Interactive Brokers’ revenue growth will continue in the near term. The average estimate is that its annual figure will grow by 14.4% this year to $7.05 billion, followed by $7.93 billion next year.

Still, there are concerns that the company has become highly overvalued. It has a forward price-to-earnings ratio of 38, higher than its five-year average of 21. This multiple is much higher than the S&P 500 average of 22 and NVIDIA’s (NASDAQ:NVDA) 22. 

Technically, there are concerns that its stock has become overbought, with the Relative Strength Index rising to 71, its highest level since May. In some cases, highly overbought stocks tend to retreat as investors book profits. 

IBKR stock has also reached the price targets set by top Wall Street analysts. For example, Goldman Sachs, BMO Capital, and Barclays had set targets below $100.

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