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Cboe Global Markets (CBOE) is in focus after announcing a multi year collaboration with CNBC that will bring daily programming to its Chicago trading floor, highlighting rising options interest and Cboe’s role in investor education.
See our latest analysis for Cboe Global Markets.
The CNBC collaboration lands after a mixed few months for the stock, with a recent 30 day share price return of 5.78% contrasting with an 11.67% 90 day gain and a 26.26% 1 year total shareholder return. This suggests momentum has cooled slightly in the short term, while longer term holders have still seen strong overall outcomes.
If this options focused story has your attention, it could be a good moment to broaden your watchlist and check out 20 top founder-led companies
With Cboe shares posting mixed short term moves but solid multi year returns, and the stock sitting close to analyst targets, the key question now is simple: is there still value on the table, or is future growth already priced in?
Analysts following Cboe see fair value at $287.92 versus the last close of $280.29, with that gap built on detailed revenue and margin assumptions.
Cboe is experiencing broad-based growth across derivatives, data, and global spot markets. This is positioning it to benefit from ongoing increases in electronic trading volume and automation; these trends are likely to drive higher transaction-based revenue and support further top-line growth.
There is a structural tailwind from expanding retail investor participation, especially in options and through digital investment platforms. This is fueling record adoption of SPX 0DTE options and could materially increase both trading volumes and net revenues.
Curious how analysts square falling revenue assumptions with higher profit margins and a richer future P/E multiple. The narrative rests on a very specific earnings path and discount rate that you might want to pressure test for yourself.
Result: Fair Value of $287.92 (UNDERVALUED)
Have a read of the narrative in full and understand what’s behind the forecasts.
However, concentration in key S&P index partnerships, along with the risk that newer trading technologies or competitors pull volume away, could quickly challenge this underpriced narrative.
Find out about the key risks to this Cboe Global Markets narrative.
Analysts see Cboe as about 2.7% undervalued at $287.92, but the current P/E of 26.8x tells a tighter story. It sits below the Capital Markets industry average of 33.1x and the peer average of 30.6x, yet stands well above a fair ratio of 13.7x. Is this a quality premium, or valuation risk building up?
For a closer look at how this price compares with the earnings profile, and what the gap to the fair ratio might mean if sentiment shifts, See what the numbers say about this price — find out in our valuation breakdown.
With mixed signals on value and sentiment running both hot and cold, it helps to move quickly, review the full picture, and weigh Cboe for yourself using 3 key rewards and 1 important warning sign
If Cboe has sharpened your interest, do not stop here; broaden your opportunities by scanning other sets of stocks that fit different roles in your portfolio.
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Strengthen your core holdings with companies that prioritize financial resilience through the solid balance sheet and fundamentals stocks screener (39 results).
This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.
Companies discussed in this article include CBOE.
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