Taking a Fresh Look at Cboe Global Markets (CBOE) Valuation After Its Multi‑Year Share Price Run

Cboe Global Markets (CBOE) has quietly outpaced the broader market over the past year, with the stock up around 25% as investors reward its diversified mix of options, futures, and global equity trading platforms.

See our latest analysis for Cboe Global Markets.

That steady climb shows up in the numbers, with the share price up strongly year to date and a three year total shareholder return above 100%, suggesting momentum is still firmly on Cboe’s side despite a recent pause.

If Cboe’s run has you rethinking what quality looks like in financial markets infrastructure, it could be worth scouting fast growing stocks with high insider ownership as your next hunting ground.

With shares hovering near analyst targets after a powerful multi year run, the key question now is whether Cboe is quietly trading below its true earnings power or if the market is already pricing in years of future growth.

Most Popular Narrative Narrative: 1.1% Undervalued

With Cboe Global Markets last closing at $252.76 against a narrative fair value of about $255.62, the story implies only a slight upside grounded in finely balanced cash flow assumptions.

Cboe's Data Vantage (market data, analytics, and index licensing) is demonstrating consistent double-digit revenue growth, supported by high-margin, recurring subscription sales, which enhances the predictability and profitability of earnings.

Read the complete narrative.

Curious how shrinking headline revenues can still support a richer earnings profile and premium multiple? The narrative leans on margin expansion and a bold profitability mix. Want to see exactly which forecasts underpin that near fully priced fair value?

Result: Fair Value of $255.62 (ABOUT RIGHT)

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

However, concentration in S&P index options and mounting competition from fintech platforms could quickly undermine the growth assumptions behind today’s nearly fully priced valuation.

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

Another Lens On Value

While the narrative fair value sits just above today’s price, our earnings based view is far less forgiving. Cboe trades on about 27 times earnings versus a 14.4 times fair ratio, which implies the market could eventually demand slower growth expectations and a lower price.

See what the numbers say about this price — find out in our valuation breakdown.

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 906 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 see the story differently or want to stress test the assumptions yourself, you can build a complete narrative in just minutes: Do it your way.

A good starting point is our analysis highlighting 2 key rewards investors are optimistic about regarding Cboe Global Markets.

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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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