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If you are wondering whether Cboe Global Markets is still fairly priced after a strong run, this breakdown will help you make sense of what you are really paying for the stock.
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The share price recently closed at US$273.36, with returns of 3.1% over 7 days, 7.1% over 30 days, 10.2% year to date, 31.0% over 1 year, 125.0% over 3 years, and 228.0% over 5 years. This naturally raises questions about how much future performance is already reflected in the valuation.
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Recent attention on Cboe Global Markets has centered on its role as a major exchange operator and a key venue for options and volatility trading, as investors have focused on liquidity, trading volumes, and product breadth across global markets. This backdrop helps frame the recent price moves as part of a wider discussion about how investors value exchange platforms and market infrastructure providers.
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Right now Cboe Global Markets holds a valuation score of 0/6, which means our standard checks do not flag the shares as undervalued. Next we will compare different valuation approaches and then finish with a more nuanced way to think about what the current price really implies.
Cboe Global Markets scores just 0/6 on our valuation checks. See what other red flags we found in the full valuation breakdown.
The Excess Returns model looks at how much profit a company is expected to generate above the return that shareholders require, given the risk they are taking. Instead of focusing on near term earnings alone, it asks whether the business can consistently earn more on its equity base than its cost of equity.
For Cboe Global Markets, the model uses a Book Value of US$49.08 per share and a Stable EPS of US$11.74 per share, based on weighted future Return on Equity estimates from 5 analysts. The Average Return on Equity is 20.63%, while the Cost of Equity is US$4.50 per share, implying an Excess Return of US$7.23 per share. The Stable Book Value input is US$56.88 per share, sourced from weighted future Book Value estimates from 2 analysts.
On these assumptions, the Excess Returns framework produces an intrinsic value of about US$217.26 per share. Compared with the recent share price of US$273.36, this implies the stock screens as overvalued by about 25.8% on this model.
Result: OVERVALUED
Our Excess Returns analysis suggests Cboe Global Markets may be overvalued by 25.8%. Discover 53 high quality undervalued stocks or create your own screener to find better value opportunities.
For a profitable company like Cboe Global Markets, the P/E ratio is a useful shorthand for how much investors are paying for each dollar of earnings. It ties directly to what the business is currently earning, which makes it easier to compare across similar companies.
What counts as a reasonable P/E usually reflects two things: how quickly earnings are expected to grow and how much risk investors see in those earnings. Higher expected growth or lower perceived risk can justify a higher P/E, while slower growth or higher risk often line up with a lower multiple.
Cboe Global Markets currently trades on a P/E of 26.13x. That sits slightly above both the Capital Markets industry average P/E of 23.14x and the peer group average of 25.88x. Simply Wall St’s Fair Ratio for Cboe Global Markets is 15.08x, which is a proprietary estimate of what the P/E might look like after adjusting for factors such as earnings growth, profit margins, size and risk, rather than just lining it up against broad industry or peer averages. Comparing the current 26.13x P/E with the 15.08x Fair Ratio suggests the shares are pricing in a richer multiple than this framework implies.
Result: OVERVALUED
P/E ratios tell one story, but what if the real opportunity lies elsewhere? Start investing in legacies, not executives. Discover our 22 top founder-led companies.
Earlier we mentioned that there is an even better way to understand valuation, so let us introduce you to Narratives, which simply means writing the story you believe about a company and linking that story to the numbers behind it. On Simply Wall St’s Community page, millions of investors can set their own view of fair value by plugging in assumptions for future revenue, earnings, and margins, then seeing how that flows through to a forecast and a fair value estimate, all in one place. Narratives help you compare that Fair Value with the current share price so you can decide if Cboe Global Markets looks attractive, fully priced, or expensive based on your own reasoning, not just a single P/E ratio. They also refresh when new information such as earnings or news is added, so your view stays aligned with the latest data without you rebuilding everything from scratch. For Cboe Global Markets, one investor might set a relatively cautious Narrative while another might choose a more optimistic one, leading to very different fair values even though they are looking at the same stock price.
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.
Companies discussed in this article include CBOE.
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