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Shares of Interactive Brokers Rank the Highest in Terms of Forward P/E Ratio in the Investment Banking & Brokerage Industry (IBKR, SCHW, GFIG, ETFC, AMTD)

By Amy Schwartz

Below are the three companies in the Investment Banking & Brokerage industry with the highest forward price to earnings (P/E) ratios. Forward P/E uses estimated earnings to compare relative value among companies in the same industry. Generally, the lower the forward P/E, the more undervalued a company is believed to be.

Interactive Brokers ranks highest with a a forward P/E ratio of 22.68. Following is Charles Schwab with a a forward P/E ratio of 22.60. GFI Group ranks third highest with a a forward P/E ratio of 21.96.

E*Trade Financial follows with a a forward P/E ratio of 17.32, and TD Ameritrade Holding rounds out the top five with a a forward P/E ratio of 16.45.

SmarTrend recommended that subscribers consider buying shares of TD Ameritrade Holding on July 19th, 2016 as our technology indicated a new Uptrend was in progress when shares hit $29.49. Since that recommendation, shares of TD Ameritrade Holding have risen 9.6%. We continue to monitor TD Ameritrade Holding for any potential shift so investors can protect gains and will alert SmarTrend subscribers immediately.

Keywords: highest forward p/e ratio interactive brokers Charles Schwab gfi group e*trade financial td ameritrade holding

Ticker(s): IBKR SCHW GFIG ETFC AMTD