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 2,2082,4592,4202,9404,0854,802.075,645.016,635.927,800.779,170.10
Revenue (%)
Operating Cash Flow 2,3562,6668,0685,8963,9688,126.929,553.5011,230.5013,201.8715,519.29
Operating Cash Flow (%)
Capital Expenditure -36-74-50-77-69-105.78-124.35-146.18-171.84-202
Capital Expenditure (%)
Free Cash Flow 2,3202,5928,0185,8193,8998,021.149,429.1511,084.3213,030.0315,317.29

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 2,2082,4592,4202,9404,0854,802.075,645.016,635.927,800.779,170.10
Operating Cash Flow 2,3562,6668,0685,8963,9688,126.929,553.5011,230.5013,201.8715,519.29
Capital Expenditure -36-74-50-77-69-105.78-124.35-146.18-171.84-202
Free Cash Flow 2,3202,5928,0185,8193,8998,021.149,429.1511,084.3213,030.0315,317.29
WACC
PV LFCF 6,339.227,165.388,099.209,154.7310,347.81
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