Where Will Interactive Brokers Stock Be in 5 Years?
A double by 2031 would need roughly half the growth the broker is already posting.
Overview
Shares of Interactive Brokers (NASDAQ:IBKR) trade near $89 as of this writing, roughly 10% under their 52-week high of $98.75. And they're not cheap. The stock costs roughly 29 times next year's expected earnings, a growth stock price on a brokerage.
Where the stock stands in five years depends on two things: how much the firm earns by then, and what investors will pay for every dollar of those earnings. The second is beyond everyone's control.
Details
The useful question is what the business would have to do to send the stock materially higher -- say, a double by late 2031. That's roughly 15% a year, compounded.
Source
Originally published at www.fool.com.
Related Articles
Disclaimer: This article is for informational purposes only and does not constitute investment advice. Data may be delayed up to 15 minutes. Past performance is not indicative of future results. Consult a licensed financial advisor before making investment decisions.