Cboe Global Markets (CBOE) AI Stock Analysis

• Market Cap: $25.75B
• Dividend Yield: 1.02%
• Average Volume (3M): 733.10K
• Price to Earnings (P/E): 32.2
• Beta (1Y): -0.11
• Revenue Growth: 15.76%
• EPS Growth: 1.97%
• Country: US
• Employees: 1,685
• Sector: Financial
• Sector Strength: 74
• Industry: Financial - Data & Stock Exchanges
• EPS (TTM): 2.50
• Shares Outstanding: 104,713,350
• 10 Day Avg. Volume: 967,848
• 30 Day Avg. Volume: 733,095
• PEG Ratio: 5.43
• Price to Book (P/B): 5.55
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 13.89
• Enterprise Value/Market Cap: 0.97
• Enterprise Value/Revenue: 1.55
• Enterprise Value/Gross Profit: 10.27
• Enterprise Value/Ebitda: 4.69
• 1Y Price Target: $234.25
• Price Target Upside: -4.97% Downside
• Rating Consensus: Hold
• Number of Analyst Covering: 14

• Rating: 80 Outperform
• Price Target: $263.00 ▲(6.69%Upside)

Cboe Global Markets presents a strong investment profile, driven primarily by its robust financial performance and positive earnings call outcomes. The stable technical indicators and recent corporate events further enhance its position, although the relatively high P/E ratio suggests careful consideration of valuation is needed.

Positive Factors

Financial Performance

Cboe’s leading derivatives franchise is a key beneficiary of elevated volatility, which was exhibited in the quarter as total revenues increased to record levels from higher volumes.

Market Demand

The success of spot crypto ETFs indicates robust market demand for crypto products in a Trad-Fi wrapper.

Product Expansion

Management discussed its current efforts to expand its product offerings and increase access to scale the business.

Negative Factors

Earnings Growth

EPS momentum is expected to slow as volatility continues to normalize.

Market Conditions

Once conditions normalize, which could be as soon as the back half if trade deals are completed, slowing derivatives revenues are expected to reemerge and result in slower EPS growth.

Valuation Concerns

The valuation setup for CBOE is less attractive as it is 15% more expensive on a relative basis compared to diversified financials.

Cboe Global Markets Business Overview & Revenue Model

Company Description

Cboe Global Markets, Inc. (CBOE) is a leading provider of global market infrastructure and tradable products, delivering cutting-edge trading solutions and products in multiple asset classes, including equities, derivatives, and foreign exchange. As one of the largest exchange operators in the world, Cboe operates markets in the United States, Europe, and Canada. The company is renowned for its innovative trading technology and market data services, catering to a diverse clientele, including individual and institutional investors, brokers, and financial institutions.

How the Company Makes Money

Cboe Global Markets generates revenue primarily through transaction fees, market data fees, and access and capacity fees. Transaction fees are charged on trades executed on its various exchanges, including equities, options, and futures. Market data fees are collected by providing real-time and historical data to market participants and financial institutions. Access and capacity fees are derived from charging market participants for the connectivity and bandwidth needed to access its exchanges. Additionally, Cboe benefits from strategic partnerships and acquisitions that enhance its product offerings and expand its market reach, further contributing to its revenue streams.

Cboe Global Markets Financial Statement Overview

Summary

Cboe Global Markets' financial performance is strong, with steady revenue and profit growth supported by robust margins and efficient operational performance. The balance sheet is solid, reflecting a healthy equity position and manageable leverage. Cash flow generation is excellent, ensuring liquidity and financial flexibility.

Income Statement

Cboe Global Markets demonstrates strong revenue growth with a 5.8% increase in TTM compared to the previous annual period. The company maintains healthy profit margins, with a gross profit margin of 56.3% and a net profit margin of 18.6% for TTM. EBIT and EBITDA margins are also robust at 28.9% and 31.8% respectively, indicating efficient operational management. The consistent revenue growth trajectory reflects positively on Cboe's market position and profitability.

Balance Sheet

Cboe's balance sheet shows a solid equity base with a debt-to-equity ratio of 0.35, indicating manageable leverage. The equity ratio stands at 51.4%, highlighting a strong equity foundation. Return on equity is a healthy 18.1%, showcasing effective utilization of shareholder capital. However, the relatively high total liabilities warrant monitoring, though they are well-covered by assets and equity.

Cash Flow

Cboe's cash flow is strong, with significant growth in free cash flow, up 71.2% in the latest TTM period compared to the previous year. The operating cash flow to net income ratio is robust at 2.3, indicating strong cash generation relative to earnings. Similarly, the free cash flow to net income ratio is high at 2.2, reflecting efficient cash utilization. Overall, Cboe demonstrates excellent cash flow management, providing a cushion for future investments and obligations.

Breakdown	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	4.09B	3.77B	3.96B	3.49B	3.43B
Gross Profit	1.61B	1.92B	1.74B	1.19B	1.03B
EBITDA	1.27B	1.27B	1.14B	988.90M	865.90M
Net Income	764.90M	761.40M	235.00M	529.00M	468.20M
Balance Sheet
Total Assets	7.79B	7.49B	7.00B	6.81B	6.52B
Cash, Cash Equivalents and Short-Term Investments	1.03B	600.70M	524.40M	379.00M	337.80M
Total Debt	1.60B	1.61B	1.87B	1.43B	1.34B
Total Liabilities	3.51B	3.50B	3.53B	3.21B	3.17B
Stockholders Equity	4.28B	3.98B	3.47B	3.60B	3.35B
Cash Flow
Free Cash Flow	1.04B	1.03B	591.30M	545.80M	1.41B
Operating Cash Flow	1.10B	1.08B	651.10M	596.80M	1.46B
Investing Cash Flow	-141.80M	-55.10M	-835.10M	-352.70M	-430.50M
Financing Cash Flow	-495.00M	-656.10M	81.70M	-200.30M	-201.70M

Cboe Global Markets Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 246.51
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Negative
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For CBOE, the sentiment is Positive. The current price of 246.51 is above the 20-day moving average (MA) of 236.01, above the 50-day MA of 229.64, and above the 200-day MA of 213.33, indicating a bullish trend. The MACD of 4.16 indicates Negative momentum. The RSI at 70.88 is Negative, neither overbought nor oversold. The STOCH value of 84.16 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for CBOE.

Cboe Global Markets Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
SPGI	80 Outperform	$162.81B	41.68	11.68%	0.70%	12.98%	42.72%
CBOE	80 Outperform	$25.75B	32.24	18.93%	1.02%	15.76%	1.97%
CME	80 Outperform	$99.88B	26.83	13.62%	3.79%	11.15%	13.98%
ICE	79 Outperform	$105.31B	38.02	10.27%	1.01%	13.25%	10.82%
NDAQ	78 Outperform	$53.68B	33.93	13.28%	1.04%	23.55%	49.91%
MSCI	66 Neutral	$42.03B	36.00	-117.99%	1.24%	10.48%	0.98%
Sector *	61 Neutral	C$15.19B	6.82	23.28%	5.39%	33.61%	-23.38%

Cboe Global Markets Corporate Events

Cboe Global Markets Approves Equity Incentive Increases

On July 14, 2025, Cboe Global Markets‘ Board approved increases in equity incentive awards for Chris Isaacson and Patrick Sexton due to their expanded global leadership roles. Isaacson’s target equity award was set at $2,625,000 and Sexton’s at $1,310,000, with both receiving special awards to be granted on July 15, 2025, split between restricted stock units and performance share units. These awards are contingent on meeting specific performance goals and continued employment, reflecting the company’s strategy to align leadership incentives with long-term performance objectives.

The most recent analyst rating on (CBOE) stock is a Hold with a $195.00 price target. To see the full list of analyst forecasts on Cboe Global Markets stock, see the CBOE Stock Forecast page.

Cboe Global Markets Amends Credit Facility Agreement

On June 24, 2025, Cboe Global Markets, Inc. entered into an Amendment and Restatement Agreement with Cboe Clear Europe N.V. and other financial institutions to amend and extend the existing credit facility agreement. The agreement extends the term until June 26, 2026, maintains the aggregate commitment at Euro 1.2 billion, with an increase to Euro 1.7 billion after the accordion feature, and updates provisions to comply with current laws and regulations. This move ensures continued financial flexibility and stability for Cboe Global Markets, potentially impacting its operations and stakeholder relationships positively.

The most recent analyst rating on (CBOE) stock is a Hold with a $195.00 price target. To see the full list of analyst forecasts on Cboe Global Markets stock, see the CBOE Stock Forecast page.

Cboe Global Markets EVP David Howson Resigns

On May 27, 2025, David Howson, Executive Vice President and Global President of Cboe Global Markets, announced his resignation, effective August 1, 2025, to return to the UK. His departure has led to strategic leadership changes, with Cathy Clay and Chris Isaacson expanding their roles, enhancing Cboe’s operational agility and positioning the company for sustained global growth. CEO Craig Donohue will also assume the title of President following Howson’s departure.

The most recent analyst rating on (CBOE) stock is a Hold with a $195.00 price target. To see the full list of analyst forecasts on Cboe Global Markets stock, see the CBOE Stock Forecast page.

Cboe Global Markets Approves Key Proposals at Annual Meeting

On May 6, 2025, Cboe Global Markets held its Annual Meeting of Stockholders, where several key proposals were approved. The stockholders approved the Third Amended and Restated Long-Term Incentive Plan, elected a new Board of Directors, ratified the appointment of KPMG LLP as the independent auditor for 2025, and approved a stockholder proposal on political spending. These decisions are expected to impact the company’s governance and operational strategies moving forward.

Cboe Global Markets Announces CEO Transition

Cboe Global Markets announced the retirement of CEO Fredric J. Tomczyk, effective May 7, 2025, with Craig Donohue appointed as his successor. Donohue, a seasoned executive with extensive experience in global financial markets, is expected to drive forward Cboe’s strategic initiatives and enhance its market leadership, ensuring a smooth transition and continued growth for the company.