IBKR has been indiscriminately sold in the zero commissions price war it itself sparked. In my opinion, the market reaction is overly US-centric for this global broker. One of the world's most profitable and consistent growing franchises is on sale at a P/E consensus 2019 ratio of 21 (this number reduces to 14 excluding IBKR's excess capital).
We will analyze the immediate and then long-term implications of the US price war for IBKR. First, a quick recap of the price war timeline is in order.
Price war timeline
- Beginning of August: Fidelity starts offering