Interactive Brokers: The Valuation Is High, But Growth Is Stronger
Source: Seeking Alpha
Article summary
Interactive Brokers remains a buy, supported by robust account growth, expanding assets, and exceptional pre-tax margins near 78%. IBKR's operating leverage and low-cost model underpin double-digit annual earnings growth, even as trading activity moderates and commission rates decline. Interest rate sensitivity is a key risk; a 25bp drop in U.S. rates could reduce annual net interest income by $83 million, but asset growth partly offsets this.
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