If You’d Dropped $1,000 on Interactive Brokers (IBKR) Stock 5 Years Ago, Here’s How Fat Your Wallet Would Be Now

Let’s cut to the chase—Wall Street’s favorite pastime is hindsight investing. So let’s indulge.

Interactive Brokers (IBKR) has been a quiet beast in the brokerage game. No flashy Super Bowl ads, just relentless execution. But how’d that translate for your portfolio?

The Numbers Don’t Lie

A grand five years ago would’ve netted you... well, more than a grand today. (Surprise—unlike your savings account.)

Why It Worked

While fintech startups burned VC cash on neon debit cards, IBKR stuck to the boring stuff: low margins, high volume, and clients who actually trade.

The Punchline

Turns out, betting on the casino—not the gamblers—pays off. Who knew? (Besides Warren Buffett, Ray Dalio, and literally every finance textbook ever.)

Bonus Cynical Take: Of course, you didn’t invest. You were too busy ‘diversifying’ into Dogecoin.

Image source: Getty Images.

A more important question than how Interactive Brokers stock has performed in the past is how it might perform in the future. Its future does seem quite promising. For one thing, its profit margins are fat, reflecting an efficient operation and a high degree of automation.

While Interactive Brokers' future seems bright, don't rush to snap up shares without thinking. At recent levels, the stock seems somewhat overvalued. The stock's recent forward-looking price-to-earnings (P/E) ratio -- based on estimates -- of 33 is well above the five-year average of 20, for example, and its price-to-sales ratio of 2.95 is well above the five-year average of 1.85.

It makes sense to add the stock to your watch list, waiting for a lower price, or maybe buy into it gradually over time with small amounts of money invested at regular intervals.