Discounted Cash Flow (DCF) Analysis Levered

Interactive Brokers Group, Inc. (IBKR)

$80.61

-0.57 (-0.70%)

All numbers are in Millions, Currency in USD

Stock DCF: 6,936.37 | 80.61 | undervalue

Free Cash Flow

Year A/P	2018 Actual	2019 Actual	2020 Actual	2021 Actual	2022 Actual	2023 Projected	2024 Projected	2025 Projected	2026 Projected	2027 Projected
Revenue	2,208	2,459	2,420	2,940	4,085	4,802.07	5,645.01	6,635.92	7,800.77	9,170.10
Revenue (%)
Operating Cash Flow	2,356	2,666	8,068	5,896	3,968	8,126.92	9,553.50	11,230.50	13,201.87	15,519.29
Operating Cash Flow (%)
Capital Expenditure	-36	-74	-50	-77	-69	-105.78	-124.35	-146.18	-171.84	-202
Capital Expenditure (%)
Free Cash Flow	2,320	2,592	8,018	5,819	3,899	8,021.14	9,429.15	11,084.32	13,030.03	15,317.29

Weighted Average Cost Of Capital

Share price	$ 80.61
Beta	0.773
Diluted Shares Outstanding	98.98
Cost of Debt
Tax Rate	80.98
After-tax Cost of Debt	0.95%
Risk-Free Rate
Market Risk Premium
Cost of Equity	7.433
Total Debt	8,958
Total Equity	7,978.81
Total Capital	16,936.81
Debt Weighting	52.89
Equity Weighting	47.11
Wacc

Build Up Free Cash Flow

Year A/P	2018 Actual	2019 Actual	2020 Actual	2021 Actual	2022 Actual	2023 Projected	2024 Projected	2025 Projected	2026 Projected	2027 Projected
Revenue	2,208	2,459	2,420	2,940	4,085	4,802.07	5,645.01	6,635.92	7,800.77	9,170.10
Operating Cash Flow	2,356	2,666	8,068	5,896	3,968	8,126.92	9,553.50	11,230.50	13,201.87	15,519.29
Capital Expenditure	-36	-74	-50	-77	-69	-105.78	-124.35	-146.18	-171.84	-202
Free Cash Flow	2,320	2,592	8,018	5,819	3,899	8,021.14	9,429.15	11,084.32	13,030.03	15,317.29
WACC
PV LFCF						6,339.22	7,165.38	8,099.20	9,154.73	10,347.81
SUM PV LFCF										50,012.15

Terminal Value

Growth in perpetuity method:
Long-term growth rate
WACC (%)	4.00
Free cash flow (t + 1)	15,623.63
Terminal Value	781,181.62
Present Value of Terminal Value	642,074.35

Intrinsic Value

Enterprise Value	692,086.50
Net Debt	5,522
Equity Value	686,564.50
Shares Outstanding	98.98
Equity Value Per Share	6,936.37