Cboe Global Markets has just declared a fourth-quarter cash dividend of $0.72 per share, and the company is drawing attention by proposing longer trading hours for select equity options. Both updates are important for investors who are monitoring flexibility and returns.
See our latest analysis for Cboe Global Markets.
Cboe Global Markets’ efforts to lengthen trading hours come alongside a recently declared dividend and its ongoing share repurchase activity. This signals continued management confidence and an eye for innovation. With total shareholder return up 13.5% over the past year and an impressive 98% for the past three years, the stock’s momentum still appears solid, even as the pace of gains settles after a standout period.
If Cboe’s recent moves have you curious about where opportunity could strike next, this is an ideal moment to broaden your search and discover fast growing stocks with high insider ownership
After several years of significant growth and a recent stream of shareholder-focused updates, the essential question remains: is Cboe Global Markets currently offering investors hidden value, or has the market already factored in its future momentum?
The narrative’s fair value suggests Cboe Global Markets is priced around $249.57 per share, just above the last closing price of $238.75. This tight gap sets the stage for an in-depth look at the underlying growth thesis driving that valuation.
Cboe is experiencing broad-based growth across derivatives, data, and global spot markets. This positions it to benefit from ongoing increases in electronic trading volume and automation, as these trends are likely to drive higher transaction-based revenue and support further top-line growth.
The market may only be seeing the surface. This valuation pivots on aggressive profit margin expansion and bold international diversification. What is the one forecasted shift that underpins the price target? Crack the full narrative to uncover the surprising assumptions powering bulls’ optimism.
Result: Fair Value of $249.57 (UNDERVALUED)
Have a read of the narrative in full and understand what’s behind the forecasts.
However, Cboe’s reliance on S&P index options and mounting global competition could disrupt growth. This could challenge the bullish narrative if diversification efforts stall.
Find out about the key risks to this Cboe Global Markets narrative.
Looking through the lens of the SWS DCF model, however, Cboe Global Markets appears overvalued, trading at $238.75 compared to a fair value estimate of $191.11. This approach points to far less upside and suggests expectations may be running ahead of fundamentals. Could the market be too optimistic, or is there a factor the DCF model might be missing?
Look into how the SWS DCF model arrives at its fair value.
Simply Wall St performs a discounted cash flow (DCF) on every stock in the world every day (check out Cboe Global Markets for example). We show the entire calculation in full. You can track the result in your watchlist or portfolio and be alerted when this changes, or use our stock screener to discover undervalued stocks based on their cash flows. If you save a screener we even alert you when new companies match – so you never miss a potential opportunity.
If you would rather chart your own course, you can dive into the data and piece together a personalized investment outlook in just a few minutes. Do it your way
A great starting point for your Cboe Global Markets research is our analysis highlighting 2 key rewards and 1 important warning sign that could impact your investment decision.
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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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