Assessing Cboe Global Markets (CBOE) Valuation After Recent Share Price Gains

Cboe Global Markets (CBOE) has caught the attention of investors lately, with its stock showing steady gains over the past month. The company continues to be a major player in the financial markets sector.

See our latest analysis for Cboe Global Markets.

After steadily climbing over the past month, Cboe Global Markets’ share price stands at $241.49. Momentum has been supported by a 22.9% year-to-date gain and a 16.3% total shareholder return over the past year, signaling building confidence in its growth story.

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Yet, with shares hovering near analyst targets after a strong run, the real question is whether Cboe Global Markets is still undervalued or if the market has already priced in all its future growth potential.

Most Popular Narrative: 2.4% Undervalued

Cboe Global Markets' last closing price of $241.49 sits just below the most widely followed fair value estimate of $247.47. This reflects a narrow gap and a market that is finely balanced on its outlook.

Cboe is experiencing broad-based growth across derivatives, data, and global spot markets. The company is positioned 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.

Read the complete narrative.

Want to uncover the financial projections fueling this price target? The linchpin is a set of optimistic earnings, margin, and valuation forecasts that might surprise you. What assumptions unlock this upside? Find out what could drive these numbers in ways few expect.

Result: Fair Value of $247.47 (UNDERVALUED)

Have a read of the narrative in full and understand what's behind the forecasts.

However, heavy reliance on key index partnerships and the rise of fintech disruptors could challenge Cboe’s growth if diversification efforts are not successful.

Find out about the key risks to this Cboe Global Markets narrative.

Another View: Discounted Cash Flow Perspective

While analysts see Cboe Global Markets' stock as slightly undervalued based on consensus price targets and growth projections, our SWS DCF model offers a different perspective. According to this method, CBOE is trading above its estimated fair value by a significant margin, suggesting possible overvaluation. Could the optimism already be fully reflected in the current price, or is something being overlooked?

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.

Build Your Own Cboe Global Markets Narrative

If you have a different perspective or want to dig into the numbers yourself, you can piece together your own view quickly and easily 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.

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