Tradeweb Markets (TW): Evaluating Valuation Following Record-Setting Earnings and New Electronic Trading Milestones

Tradeweb Markets (TW) delivered quarterly results that grabbed investor attention, posting record revenues across mortgages, global ETFs, and equity derivatives. These gains reflect both strong core demand and ongoing innovation in its electronic trading platforms.

See our latest analysis for Tradeweb Markets.

Despite Tradeweb's record-setting revenues and industry-first innovations, the momentum has not carried over to the share price lately, with a 1-year total return of -16.8% and a steeper 19.8% share price drop for 2025 so far. Still, the stock is up a remarkable 90.8% over three years, underscoring long-term growth even as the market weighs recent volatility and a premium valuation.

If Tradeweb’s tech-driven evolution has you curious, now is a good moment to expand your search and discover fast growing stocks with high insider ownership

With strong fundamentals and a track record of exceeding expectations, the question is whether Tradeweb’s recent slide presents a compelling entry point, or if the current valuation has already factored in its future growth story?

Most Popular Narrative: 20.1% Undervalued

With the most widely followed narrative putting Tradeweb's fair value at $131.87, the latest closing price of $105.33 offers a notable discount based on future growth drivers and margin expansion.

Tradeweb is poised to benefit from the ongoing migration of fixed income and derivatives trading from manual and voice channels to electronic platforms. This is evidenced by record electronic trading volumes and expanding adoption of automated tools like AiEX and Portfolio Trading. This trend can drive sustained transaction growth and fee revenue expansion.

Read the complete narrative.

Want to know what’s powering this bullish fair value? The real story hides in bold forecasts of margin expansion and industry-defying profit multiples. Ready to see which numbers are fueling optimism for Tradeweb’s next chapter? Explore the details behind the narrative and uncover what could redefine this stock’s outlook.

Result: Fair Value of $131.87 (UNDERVALUED)

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

However, persistent reliance on manual trading during volatile periods and intensified competition could limit Tradeweb's electronic growth pace and future market share gains.

Find out about the key risks to this Tradeweb Markets narrative.

Another View: What Multiples Say

Taking a step back from fair value forecasts, Tradeweb’s current price-to-earnings ratio stands at 35.7x, which is noticeably higher than both the US Capital Markets industry average of 24x and its closest peers at 27.3x. The fair ratio, based on regression, is just 16.6x, which is significantly lower. This premium means investors are paying well above market norms for each dollar of earnings, which could raise valuation risk if growth expectations slip. Does this steep premium truly reflect Tradeweb’s long-term prospects, or is it a warning sign for potential buyers?

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

Build Your Own Tradeweb Markets Narrative

If you see the story a bit differently or want to dive into the data on your own, you can shape your own forecast and insights in under three minutes. Do it your way

A good starting point is our analysis highlighting 2 key rewards investors are optimistic about regarding Tradeweb 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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