CBOE

Cboe Global Markets

Fundamental data last updated:April 13, 2026

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company profile

SECTOR

Financial Services

industry

Financial Data & Stock Exchanges

Exchange

BATS

County of HQ

United States

Next Earnings Date

05/01/26

Business Summary

Cboe Global Markets operates critical exchange infrastructure, facilitating trading in equities, options, futures, and proprietary market data products. Its core moat stems from network effects: liquidity attracts liquidity, making established exchanges difficult to displace once scale is achieved. The company generates cash through transaction fees, market data subscriptions, and listings, creating diversified revenue streams tied directly to market activity. High operating margins reflect the scalability of exchange technology — once infrastructure is built, incremental trading volume drops heavily to the bottom line, reinforcing durable cash generation.

 


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VALUATION

P/E

28.4

Market Cap ($M USD)

$30,998

Forward P/E

22.9

PEG

12.9

PRICE TO SALES

6.6

PRICE TO BOOK

6

EV / EBITDA

17.4

5-Year Average P/E

Free Cash Flow Yield

DCF Value

Graham Number

Price to FCF

EV to FCF

Earnings Yield

FCF Yield

DIVIDEND

Yield

0.90%

Annual Payout

$2.79

Payout Ratio

25.80%

Consecutive Years of Dividend Growth

10+

5-Year Dividend Growth Rate

11.40%

Financial Health & Profitability

Earnings Per Share

$10.46

Next Year EPS Growth Estimate

$12.94

Next Year Revenue Growth Estimate

3.70%

Return on Equity (ROE)

21.30%

FREE CASH FLOW

Operating Margin

32.10%

Debt-to-Equity

0.3

Piotroski F-Score

9

Altman Z-Score

6.3

Return on Invested Capital (ROIC)

17.40%

Current Ratio

1.9

Quick Ratio

Net Debt to EBITDA

Interest Coverage

Gross Profit margin

FCF PER SHARE

REVENUE PER SHARE

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Gainseekers Quantitative Analysis

Summary

At 28.4x earnings and 22.9x forward earnings, the market is not pricing CBOE as distressed — but it is pricing in meaningful growth despite a staggering 12.9 forward PEG. That PEG ratio signals expectations are extremely expensive relative to growth, especially with Return on Equity at just 3.70%. However, the balance sheet is undeniably strong: an Altman Z-Score of 6.3 and a pristine Piotroski F-Score of 9 indicate exceptional financial stability and accounting strength, making bankruptcy risk negligible. This is not a broken company — it is a financially solid operator trading at a premium multiple that requires execution to justify its valuation.

AI Exposure / Tech Reliance

As a Financial Data & Stock Exchanges operator, CBOE sits at the core of market infrastructure, an area naturally leveraged to benefit from AI-driven trading, data analytics, and automation. Exchanges monetize volatility and data, both of which expand as algorithmic and AI-based trading grows. Its positioning in Financial Data & Stock Exchanges gives it structural relevance as markets digitize further.

The Bull Case

A GARP investor would be drawn to the quality metrics immediately: a Piotroski F-Score of 9 signals operational strength across profitability, leverage, and efficiency factors. ROIC at 17.40% comfortably exceeds typical capital costs, indicating disciplined capital allocation and real economic value creation. Operating margins of 21.30% show durable pricing power, while a 1.9 current ratio and 32.10% debt-to-equity suggest manageable leverage and liquidity stability. Layer on a 6.3 Altman Z-Score and you have a financially fortified business with institutional-grade resilience; even with a 28.4 P/E, investors may justify paying up for a high-quality exchange franchise with consistent capital efficiency.

The Bear Case

The valuation is the obvious pressure point. A 12.9 forward PEG ratio is extreme, especially when Return on Equity sits at only 3.70%, implying weak profitability relative to shareholder capital. Short interest at 11.40% of float indicates a meaningful segment of the market is betting against the stock, and the 22.9 forward P/E leaves limited margin for error if growth disappoints. Debt-to-equity at 32.10% is not alarming, but in combination with a modest 0.3 yield and a payout ratio listed at $2.79, income support is minimal — meaning investors are relying almost entirely on growth multiple expansion rather than cash return.

Market Sentiment & Smart Money

Short Interest %

3.00%

Analyst Consensus

2.85

Average Analyst Price Target

$295.29

Institutional Ownership %

89.30%

1-Year Beta

-0.19

Insider Buying % (6 Mo)

0.30%%

Distance to 52-Week High

96.80%

Distance to 52-Week Low

142.50%

EARNINGS SURPRISE %

50-DAY SMA

200-DAY SMA

⚠️ Financial Disclaimer:
This content is for informational purposes only and is not financial advice. Information may be delayed or inaccurate. We may earn a commission from partner links.