Cboe Global Markets Community

Metrics Used in Calculation For CBOE Global Markets, I employed two-stage models for both DCF and DDM analysis given the company's established market position with potential for different growth phases: 1. Two-Stage Discounted Cash Flow (DCF) Model Phase 1 (Years 1-10) : 8% free cash flow growth reflecting CBOE's strong market position and expanding derivatives business Phase 2 (Perpetual) : 3% growth rate aligned with long-term economic growth expectations Projects free cash flows over 10 years plus terminal value using perpetual growth model 2.

Key Takeaways Expansion in derivatives, data, and global trading drives growth, aided by retail investor activity and increasing use of digital investment platforms. Strategic international expansion and recurring high-margin data services enhance revenue stability, while technology investment and divestitures improve efficiency and margins.