Cboe Global Markets, Inc.
Cboe Global Markets, Inc. Fundamental Analysis
Cboe Global Markets, Inc. (CBOE) shows strong financial fundamentals with a PE ratio of 27.40, profit margin of 23.33%, and ROE of 22.99%. The company generates $4.7B in annual revenue with moderate year-over-year growth of 8.51%.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of 81.0/100 based on profitability, valuation, growth, and balance sheet metrics. The B+ grade reflects solid fundamentals with room for improvement in valuation or growth.
Fundamental Health Score
We analyze CBOE's fundamental strength across five key dimensions:
Efficiency Score
ExcellentCBOE demonstrates superior asset utilization.
Valuation Score
WeakCBOE trades at a premium to fair value.
Growth Score
ModerateCBOE shows steady but slowing expansion.
Financial Health Score
ExcellentCBOE maintains a strong and stable balance sheet.
Profitability Score
ExcellentCBOE achieves industry-leading margins.
Key Financial Metrics
Is CBOE Expensive or Cheap?
P/E Ratio
CBOE trades at 27.40 times earnings. This indicates a fair valuation.
PEG Ratio
When adjusting for growth, CBOE's PEG of 2.31 indicates potential overvaluation.
Price to Book
The market values Cboe Global Markets, Inc. at 5.87 times its book value. This suggests the stock is fully valued or overvalued on an asset basis.
EV/EBITDA
Enterprise value stands at 17.98 times EBITDA. This signals the market has high growth expectations.
How Well Does CBOE Make Money?
Net Profit Margin
For every $100 in sales, Cboe Global Markets, Inc. keeps $23.33 as profit after all expenses.
Operating Margin
Core operations generate 31.65 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $22.99 in profit for every $100 of shareholder equity.
ROA
Cboe Global Markets, Inc. generates $11.82 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
Cboe Global Markets, Inc. produces operating cash flow of $844.45M, showing steady but balanced cash generation.
Free Cash Flow
Cboe Global Markets, Inc. generates strong free cash flow of $793.48M, providing ample flexibility for dividends, buybacks, or growth.
FCF Per Share
Each share generates $7.58 in free cash annually.
FCF Yield
CBOE converts 2.64% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
27.40
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
2.31
vs 25 benchmark
P/B Ratio
Price to book value ratio
5.87
vs 25 benchmark
P/S Ratio
Price to sales ratio
6.39
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
0.33
vs 25 benchmark
Current Ratio
Current assets to current liabilities
1.87
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
0.23
vs 25 benchmark
ROA
Return on assets percentage
0.12
vs 25 benchmark
ROCE
Return on capital employed
0.21
vs 25 benchmark
How CBOE Stacks Against Its Sector Peers
| Metric | CBOE Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 27.40 | 18.86 | Worse (Expensive) |
| ROE | 22.99% | 847.00% | Weak |
| Net Margin | 23.33% | 4202.00% | Weak |
| Debt/Equity | 0.33 | 0.91 | Strong (Low Leverage) |
| Current Ratio | 1.87 | 667.17 | Neutral |
| ROA | 11.82% | -21543.00% (disorted) | Strong |
CBOE outperforms its industry in 2 out of 6 key metrics, particularly excelling in ROA, but lagging in P/E Ratio.
Historical Growth Performance
5-Year Growth Trajectory
This section reviews Cboe Global Markets, Inc.'s 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.
Revenue CAGR
73.87%
Industry Style: Value, Dividend, Cyclical
High GrowthEPS CAGR
116.26%
Industry Style: Value, Dividend, Cyclical
High GrowthFCF CAGR
84.35%
Industry Style: Value, Dividend, Cyclical
High Growth