Cboe Global Markets (CBOE) AI Stock Analysis

• Market Cap: $30.66B
• Dividend Yield: 1.06%
• Average Volume (3M): 834.82K
• Price to Earnings (P/E): 28.1
• Beta (1Y): -0.12
• Revenue Growth: 16.74%
• EPS Growth: 26.74%
• Country: US
• Employees: 1,685
• Sector: Financial
• Sector Strength: 70
• Industry: Financial - Data & Stock Exchanges
• EPS (TTM): 3.06
• Shares Outstanding: 104,667,694
• 10 Day Avg. Volume: 744,921
• 30 Day Avg. Volume: 834,816
• PEG Ratio: 0.54
• Price to Book (P/B): 5.11
• Price to Sales (P/S): 5.57
• P/FCF Ratio: 0.00
• Enterprise Value/Market Cap: 0.97
• Enterprise Value/Revenue: 6.34
• Enterprise Value/Gross Profit: 12.46
• Enterprise Value/Ebitda: 17.52
• 1Y Price Target: $290.86
• Price Target Upside: -0.14% Downside
• Rating Consensus: Hold
• Number of Analyst Covering: 8
• EPS Forecast (FY): 11.65
• Revenue Forecast (FY): $2.59B

• Rating: 75 Outperform
• Price Target: $311.00 ▲(6.77% Upside)
• Action: Downgraded Date: 01/27/26
• Date: Action: Downgraded 01/27/26

The score is driven primarily by strong underlying financial performance (profitability and balance sheet strength) and a constructive earnings outlook with raised growth guidance. These positives are moderated by weakening free cash flow growth, technically overbought conditions, and a relatively expensive valuation with a low dividend yield.

Positive Factors

Balance sheet strength

Cboe’s low leverage and strong ROE reflect a conservative capital structure that preserves financial flexibility. Over the medium term this supports investment in product development, selective M&A, and resilience through market cycles, enabling steady capital returns and risk management.

Record revenue and margins

Record revenue and EPS, coupled with a TTM gross margin of ~69.5% and net margin ~21.3%, indicate durable demand and operating leverage across core franchises. Strong margins support reinvestment in tech and data products and provide a buffer against cyclical trading volumes.

Data Vantage growth

High single-digit to low-double-digit growth in Data Vantage driven mainly by new sales signals durable, recurring revenue expansion. This diversifies the fee mix away from transaction sensitivity and enhances long-term margin stability from higher-value data/licensing products.

Negative Factors

Weakening cash flow growth

A sharp 66% decline in FCF growth and modest OCF-to-net-income conversion reduce capacity to fund capex, buybacks, or acquisitions from operations. If cash conversion remains impaired, the company may face tougher choices on capital allocation or increased reliance on balance-sheet measures.

Futures segment weakness

A 22% drop in futures net revenue highlights structural sensitivity to volume declines in a key derivatives product. Persistent futures weakness would increase revenue cyclicality, reduce diversification benefits from derivatives, and pressure long-term top-line stability.

Strategic realignment execution risk

Divestitures and wind-downs aim to focus the core business but are expected to reduce net revenue (~3%) and require execution of sales and wind-down plans. These moves concentrate operations, risk integration or disposal setbacks, and could temporarily disrupt revenue and client relationships.

Cboe Global Markets Business Overview & Revenue Model

Company Description

Cboe Global Markets, Inc., through its subsidiaries, operates as an options exchange worldwide. It operates through five segments: Options, North American Equities, Futures, Europe and Asia Pacific, and Global FX. The Options segment trades in listed market indices. The North American Equities segment trades in listed U.S. and Canadian equities. This segment also offers exchange-traded products (ETP) transaction and ETP listing services. The Futures segment trades in futures. The Europe and Asia Pacific segment offers pan-European listed equities and derivatives transaction services, ETPs, exchange-traded commodities, and international depository receipts, as well as ETP listings and clearing services. The Global FX segment provides institutional foreign exchange (FX) trading and non-deliverable forward FX transactions services. The company has strategic relationships with S&P Dow Jones Indices, LLC; FTSE International Limited; Frank Russell Company; MSCI Inc.; and DJI Opco, LLC. The company was formerly known as CBOE Holdings, Inc. and changed its name to Cboe Global Markets, Inc. in October 2017. Cboe Global Markets, Inc. was founded in 1973 and is headquartered in Chicago, Illinois.

How the Company Makes Money

Cboe Global Markets generates revenue primarily through transaction fees, which are charged for trades executed on its exchanges. These fees are collected from market participants, including retail and institutional investors, as well as market makers. Additionally, CBOE earns revenue from the listing and trading of exchange-traded products (ETPs) and through market data services, which provide valuable trading information to clients. The company also engages in licensing agreements for its proprietary indexes, such as the Cboe Volatility Index (VIX), which contributes to its revenue stream. Strategic partnerships with financial institutions and technology firms further enhance CBOE's product offerings and market reach, ultimately supporting its earnings growth.

Cboe Global Markets Financial Statement Overview

Summary

Overall financials are solid: strong income statement (85) with healthy margins and profitability, a robust balance sheet (78) with low leverage (debt-to-equity 0.32) and strong ROE (21.5%). The main drag is cash flow quality (70), including a sharp decline in free cash flow growth (-66% TTM) and only moderate operating cash flow to net income (0.32).

Income Statement

Cboe Global Markets has demonstrated strong revenue growth with a TTM (Trailing-Twelve-Months) increase of 1.9% and consistent profitability. The gross profit margin has improved significantly to 69.5% in the TTM, indicating efficient cost management. The net profit margin is healthy at 21.3%, showing effective conversion of revenue into profit. However, the EBIT margin has slightly decreased compared to previous years, suggesting potential cost pressures.

Balance Sheet

The company's balance sheet is robust with a low debt-to-equity ratio of 0.32, indicating prudent financial leverage. The return on equity is strong at 21.5%, reflecting efficient use of shareholder funds. The equity ratio stands at 53.9%, showcasing a solid capital structure. However, the slight increase in total debt over the years could pose a risk if not managed carefully.

Cash Flow

Cboe's cash flow performance shows mixed results. The operating cash flow to net income ratio is moderate at 0.32, indicating room for improvement in cash generation from operations. The free cash flow to net income ratio is strong at 89.2%, suggesting good cash conversion. However, the free cash flow growth rate has declined significantly by 66% in the TTM, which could impact future liquidity.

Breakdown	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	4.71B	4.09B	3.77B	3.96B	3.49B
Gross Profit	2.31B	2.07B	1.92B	1.74B	1.48B
EBITDA	1.64B	1.27B	1.27B	659.70M	971.50M
Net Income	1.10B	764.90M	761.40M	235.00M	529.00M
Balance Sheet
Total Assets	9.31B	7.79B	7.49B	7.00B	6.81B
Cash, Cash Equivalents and Short-Term Investments	2.25B	1.03B	600.70M	524.40M	379.00M
Total Debt	1.68B	1.60B	1.61B	1.87B	1.43B
Total Liabilities	4.17B	3.51B	3.50B	3.53B	3.21B
Stockholders Equity	5.14B	4.28B	3.98B	3.47B	3.60B
Cash Flow
Free Cash Flow	0.00	963.70M	748.00M	808.80M	545.80M
Operating Cash Flow	0.00	1.02B	793.00M	868.60M	596.80M
Investing Cash Flow	0.00	-141.80M	-55.10M	-835.10M	-352.70M
Financing Cash Flow	0.00	-495.00M	-656.10M	81.70M	-200.30M

Cboe Global Markets Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 291.27
• 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 291.27 is above the 20-day moving average (MA) of 275.62, above the 50-day MA of 265.61, and above the 200-day MA of 245.10, indicating a bullish trend. The MACD of 6.67 indicates Negative momentum. The RSI at 71.34 is Negative, neither overbought nor oversold. The STOCH value of 93.90 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
CME	77 Outperform	$115.04B	28.14	14.63%	3.92%	5.84%	8.51%
MSCI	76 Outperform	$40.32B	34.98	―	1.24%	9.02%	3.45%
CBOE	75 Outperform	$30.66B	28.12	23.25%	1.06%	16.74%	26.74%
ICE	72 Outperform	$88.23B	26.95	11.72%	1.19%	8.96%	30.16%
Sector *	68 Neutral	$18.00B	11.42	9.92%	3.81%	9.73%	1.22%
SPGI	67 Neutral	$124.98B	28.54	13.91%	0.73%	9.04%	21.35%
NDAQ	65 Neutral	$46.11B	26.25	15.28%	1.07%	16.41%	68.03%

Cboe Global Markets Corporate Events

Cboe Global Markets Announces Major Leadership Reshuffle

On January 26, 2026, Cboe Global Markets announced a sweeping leadership reshuffle that will see long-serving Chief Operating Officer Chris Isaacson retire from his role effective March 6, 2026, after which he will remain with the company as an advisor and consultant through the end of 2026 under a retirement and consulting agreement governing his compensation and equity treatment. Scott Johnston, a veteran operations executive with more than four decades of experience at firms including Akuna Capital, Hudson River Trading, Citadel, Tower Research Capital, CME Group and UBS, will join Cboe on February 17, 2026 and is expected to assume the role of Executive Vice President and Chief Operating Officer on March 7, 2026, with a pay package comprising a $550,000 base salary, annual incentives, a long-term equity grant and sign-on awards. Alongside the COO succession, Cboe named Heidi Fischer as Executive Vice President, Global Head of Equities and Spot Markets to oversee its global cash equities and spot businesses, promoted Alex Dalley to lead European Equities (subject to regulatory approval), expanded Jon Weinberg’s remit to head global FX and off-exchange trading, and introduced a regional office leadership model across Kansas City, New York, London and Amsterdam—moves that collectively tighten the firm’s operational focus, deepen specialist leadership in key asset classes and support its globalization strategy at a time of intensifying competition in exchange and off-exchange market infrastructure.

The most recent analyst rating on (CBOE) stock is a Buy with a $304.00 price target. To see the full list of analyst forecasts on Cboe Global Markets stock, see the CBOE Stock Forecast page.