Cboe Global Markets (CBOE): Evaluating Valuation After Crypto Futures Launch and Record Q2 Revenues

If you have been following Cboe Global Markets (CBOE), you know it has not been standing still this year. The company just announced plans to introduce bitcoin and ether Continuous futures to its U.S. futures exchange, a move that could change the game for traders interested in digital assets. With these products, Cboe is trying to offer a streamlined way for investors to get long-term exposure to cryptocurrencies within a well-regulated, transparent framework.

This news comes on the heels of the SEC’s green light for Cboe to list and trade commodity-based trust shares, opening fresh opportunities in the fast-moving crypto and digital assets sector. In the background, Cboe posted record Q2 revenues and continues to deliver growth across several business lines including options and global FX. The scale of its year-to-date share price gain, up 19 percent, points to growing confidence. However, momentum has cooled in the past month after a period of steady outperformance since last summer. Other headlines, such as the departure of a senior executive to Citigroup, have kept the stock in focus. The long-term view remains shaped by product innovation and earnings momentum.

Now that Cboe’s stock has clocked a strong year, the real question is whether the market’s enthusiasm about its expansion into digital assets leaves room for further upside, or if future growth is already priced in.

Most Popular Narrative: 5.8% Undervalued

Analysts see Cboe Global Markets as trading at a modest discount to its fair value, based on projected earnings and an 8.1% discount rate.

Cboe is experiencing broad-based growth across derivatives, data, and global spot markets, positioning it 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.

Want to discover the ambitious logic powering this valuation call? This forecast is grounded in a bold mix of growth engines and future margin assumptions hidden just beneath the surface. Curious which critical financial levers plug into the analysts' target? The full narrative reveals the numbers and reasoning that drive this fair value. Don't miss the details powering the story.

Result: Fair Value of $247.47 (UNDERVALUED)

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

However, significant reliance on S&P index options and rapid changes in digital trading technology could present challenges to Cboe's projected growth trajectory in coming years.

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

Another View: Our DCF Model Shows a Different Story

The SWS DCF model, which focuses on the present value of future cash flows, suggests Cboe may actually be overvalued at current prices. Does this highlight risks others are missing, or is it just being too cautious?

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’re eager to challenge these conclusions or want to dig into the numbers firsthand, you can shape your own perspective 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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