Interactive Brokers Group (IBKR) has an EV-to-EBITDA (enterprise value to earnings before interest, tax, depreciation, and amortization) ratio on an NTM (next 12-month) basis of 6.82x. The peer average is 20.68x, implying its discounted valuations. Peers Morgan Stanley (MS), LPL Financial Holdings (LPLA), and TD Ameritrade (AMTD) have EV-to-EBITDA ratios of 39.72x, 8.85x, and 13.48x, respectively, on an NTM basis.
Interactive Brokers currently has discounted valuations mainly because of the negative momentum from the recent US tax reforms. It also saw a substantial decline in trading gains in 4Q17 compared to 4Q16, thus negatively impacting its valuations. The fall resulted from a decline in the Market-Making trading volumes.
Interactive Brokers Group generated total revenues of $593 million in 4Q17 compared to $215 million in 4Q16. The components of total revenues are trading gains, interest income, commissions, and other income (loss). The company generated commissions of $170 million in 4Q17 compared to $150 million in 4Q16.
Interactive Brokers has maintained a quarterly dividend payout of $0.10 per share for quite some time. In the four quarters of 2017, it declared $0.10 per share. In January 2018, it declared a quarterly dividend of $0.10 per share to be paid in March 2018.
Interactive Brokers Group’s EV-to-EBITDA ratio on an LTM (last 12-month) basis was 9.78x. Ratios for peers (XLF) LPL Financial Holdings (LPLA), Morgan Stanley (MS), and TD Ameritrade (AMTD) were 11.21x, 42.14x, and 19.65x, respectively.