Is Interactive Brokers Group, Inc. overvalued or undervalued?

As of 17 October 2025, the valuation grade for Interactive Brokers Group, Inc. moved from expensive to fair. The company appears fairly valued, given its current P/E ratio of 113, which is significantly higher than the peer average of 32.52 for similar companies such as State Street Corp. at 16.53 and LPL Financial Holdings, Inc. at 34.83. Additionally, the EV to EBITDA ratio stands at 2.16, while the PEG ratio is notably high at 4.65, indicating potential overvaluation relative to growth expectations.
In terms of recent performance, Interactive Brokers has outperformed the S&P 500 year-to-date with a return of 49.95% compared to the index's 13.30%. However, over the longer term, particularly in the last three and five years, the company has lagged behind the S&P 500, with returns of -3.61% and 31.30%, respectively. This mixed performance reinforces the notion that while the stock may be fairly valued now, its historical volatility and high valuation ratios warrant caution.