Is It Too Late To Consider Cboe Global Markets (CBOE) After Its Strong Multi‑Year Rally?

• If you are wondering whether Cboe Global Markets is still fairly priced after its strong run, this article will walk you through what the current share price might be implying.
• The stock recently closed at US$296.62, with returns of 5.8% over 7 days, a 0.9% decline over 30 days, 19.6% year to date, 45.7% over 1 year, 128.7% over 3 years, and 211.8% over 5 years.
• Recent headlines around Cboe Global Markets have kept attention on the stock, with news coverage focusing on its role in global markets and ongoing interest in exchange and trading platforms. This context helps explain why investors are closely watching how the current price lines up with underlying fundamentals.
• Cboe Global Markets has a valuation score of 2 out of 6. The sections that follow will compare traditional valuation approaches, then finish with a broader framework that can help you judge whether that score really fits your view of the stock.

Cboe Global Markets scores just 2/6 on our valuation checks. See what other red flags we found in the full valuation breakdown.

Approach 1: Cboe Global Markets Excess Returns Analysis

The Excess Returns model looks at how much value a company creates above the return that shareholders require, based on its equity, earnings, and cost of equity. It focuses on what you are getting for each dollar of book value rather than just near term earnings.

For Cboe Global Markets, book value is $49.10 per share, with a stable EPS estimate of $14.44 per share, sourced from weighted future Return on Equity estimates from 5 analysts. The average Return on Equity is 22.08%, while the cost of equity is $5.10 per share. That leaves an estimated excess return of $9.34 per share, suggesting the company is expected to earn more than the return required by shareholders on its equity base.

The model also uses a stable book value estimate of $65.40 per share, based on weighted future Book Value estimates from 2 analysts, to project how these excess returns add up over time. Putting this together, the Excess Returns valuation implies an intrinsic value of about $278.52 per share, compared with the recent price of $296.62, so the stock screens as around 6.5% overvalued on this approach.

Result: ABOUT RIGHT

Cboe Global Markets is fairly valued according to our Excess Returns, but this can change at a moment’s notice. Track the value in your watchlist or portfolio and be alerted on when to act.

Head to the Valuation section of our Company Report for more details on how we arrive at this Fair Value for Cboe Global Markets.

Approach 2: Cboe Global Markets Price vs Earnings

For profitable companies, the P/E ratio is a useful shorthand because it ties the share price directly to the earnings that support it. You are essentially seeing how many dollars investors are currently willing to pay for each dollar of earnings.

What counts as a “normal” or “fair” P/E depends on what the market expects for future growth and how much risk it sees in those earnings. Faster and more reliable earnings growth usually justifies a higher P/E, while more uncertainty or weaker profitability tends to support a lower P/E.

Cboe Global Markets currently trades at a P/E of 28.38x. That is below the Capital Markets industry average P/E of 37.28x and the peer group average of 31.86x, suggesting the stock is priced more conservatively than many listed peers.

Simply Wall St also calculates a proprietary “Fair Ratio” of 13.75x for Cboe Global Markets. This blends in factors such as earnings growth, profit margins, market cap, industry classification and company specific risks, which can give a more tailored benchmark than a simple comparison with peers or a broad industry average.

Comparing the current P/E of 28.38x with the Fair Ratio of 13.75x suggests the shares are pricing in a richer valuation than that customised benchmark.

Result: OVERVALUED

P/E ratios tell one story, but what if the real opportunity lies elsewhere? Start investing in legacies, not executives. Discover our 19 top founder-led companies.

Upgrade Your Decision Making: Choose your Cboe Global Markets Narrative

Earlier it was mentioned that there is an even better way to understand valuation. Narratives on Simply Wall St let you attach a clear story to your numbers by linking your view of Cboe Global Markets, your own assumptions for future revenue, earnings and margins, and the fair value that falls out of that forecast. All of this is presented in an accessible tool on the Community page that millions of investors use to compare fair value with the current share price, update that view automatically when new earnings or news arrive, and see how different perspectives line up. For example, one investor might focus on Q2 2025 free cash flow of US$1,248m and a DCF value of US$1,122.96 per share, while another leans on analyst targets between US$246.00 and US$352.00. This gives you a clear sense of where your own Narrative sits on that spectrum.

Do you think there’s more to the story for Cboe Global Markets? Head over to our Community to see what others are saying!

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.

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