Cboe Global Markets (CBOE) AI Stock Analysis

• Market Cap: $24.49B
• Dividend Yield: 1.12%
• Average Volume (3M): 983.21K
• Price to Earnings (P/E): 27.5
• Beta (1Y): -0.07
• Revenue Growth: 18.99%
• EPS Growth: 17.97%
• Country: US
• Employees: 1,685
• Sector: Financial
• Sector Strength: 77
• Industry: Financial - Data & Stock Exchanges
• EPS (TTM): 2.46
• Shares Outstanding: 104,590,130
• 10 Day Avg. Volume: 967,268
• 30 Day Avg. Volume: 983,209
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• P/FCF Ratio: N/A
• Enterprise Value/Market Cap: 1.01
• Enterprise Value/Revenue: 5.43
• Enterprise Value/Gross Profit: 9.79
• Enterprise Value/Ebitda: 16.82
• 1Y Price Target: $247.15
• Price Target Upside: 6.26% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 16

• Rating: 70 Outperform
• Price Target: $255.00 ▲(9.64% Upside)

Cboe Global Markets' strong financial performance and positive earnings call are significant strengths, contributing to a solid overall score. However, bearish technical indicators and moderate valuation metrics slightly temper the outlook.

Positive Factors

Competitive Advantages

The key competitive advantages of index options and the expansion into additional client channels should attract more volume over time.

Global Expansion

Data Vantage revenues accelerated as international expansion efforts continue to gain traction.

Revenue Growth

Cboe reported another strong quarter with revenue at a record level, driven by strength in its derivatives franchise, which is a key beneficiary of volatility.

Negative Factors

EPS Growth Concerns

Once conditions normalize, slowing derivatives momentum is expected to reassert itself, which should weigh on 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.

Volume Decline

A significant sequential decline in exchange volumes is expected in the second half, with a forecasted -6% half-over-half growth.

Cboe Global Markets Business Overview & Revenue Model

Company Description

Cboe Global Markets (CBOE) is a leading global exchange operator that provides trading, data, and technology services across various asset classes, including equities, options, and futures. Headquartered in Chicago, Illinois, CBOE operates several exchanges, notably the Cboe Options Exchange and the Cboe Futures Exchange, and is renowned for its innovative products such as index options, volatility products, and exchange-traded funds (ETFs). The company plays a critical role in enhancing market efficiency and liquidity, catering to a diverse clientele including retail investors, institutional traders, and market makers.

How the Company Makes Money

Cboe Global Markets generates revenue through multiple streams, primarily from transaction fees, which are charged for the execution of trades on its exchanges. Additionally, the company earns revenue from the sale of market data and technology solutions, providing vital information and tools to traders and institutions. CBOE also benefits from listing fees for new products and securities on its exchanges. Significant partnerships with financial institutions and technology firms enhance its offerings and capabilities, contributing to its earnings. Moreover, revenue from proprietary products, such as the Cboe Volatility Index (VIX), further bolsters its financial performance.

Cboe Global Markets Financial Statement Overview

Summary

Cboe Global Markets demonstrates strong financial health across its income statement, balance sheet, and cash flow. Strong revenue growth and efficient operations support profitability. The company maintains a solid balance sheet with manageable leverage and strong equity. Cash flow generation is robust, underscoring financial stability and ability to fund operations and investments.

Income Statement

Cboe Global Markets shows strong income performance with a robust Gross Profit Margin of 67.7% and a solid Net Profit Margin of 19.8% for TTM. Revenue has grown steadily, with a growth rate of 10.7% in the most recent period, indicating a positive trajectory. EBIT and EBITDA margins are also strong at 28.7% and 31.5% respectively, reflecting good operational efficiency.

Balance Sheet

The company's balance sheet is solid with a healthy Debt-to-Equity Ratio of 0.34, indicating manageable leverage. Return on Equity stands at 19.3%, showing effective capital utilization. The Equity Ratio is 51.6%, indicating a strong equity base supporting its assets.

Cash Flow

Cboe's cash flow performance is strong, with a Free Cash Flow Growth Rate of 74.1%, and Free Cash Flow to Net Income Ratio of 2.01, indicating robust cash generation relative to net income. The Operating Cash Flow to Net Income Ratio is 2.09, reflecting efficient cash flow management.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	4.53B	4.09B	3.77B	3.96B	3.49B	3.43B
Gross Profit	2.52B	1.61B	1.92B	1.74B	1.19B	1.03B
EBITDA	1.46B	1.27B	1.27B	1.14B	988.90M	865.90M
Net Income	898.40M	764.90M	761.40M	235.00M	529.00M	468.20M
Balance Sheet
Total Assets	9.05B	7.79B	7.49B	7.00B	6.81B	6.52B
Cash, Cash Equivalents and Short-Term Investments	1.47B	1.03B	600.70M	524.40M	379.00M	337.80M
Total Debt	1.60B	1.60B	1.61B	1.87B	1.43B	1.34B
Total Liabilities	4.38B	3.51B	3.50B	3.53B	3.21B	3.17B
Stockholders Equity	4.67B	4.28B	3.98B	3.47B	3.60B	3.35B
Cash Flow
Free Cash Flow	1.81B	1.04B	1.03B	591.30M	545.80M	1.41B
Operating Cash Flow	1.88B	1.10B	1.08B	651.10M	596.80M	1.46B
Investing Cash Flow	-228.00M	-141.80M	-55.10M	-835.10M	-352.70M	-430.50M
Financing Cash Flow	-367.10M	-495.00M	-656.10M	81.70M	-200.30M	-201.70M

Cboe Global Markets Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 232.58
• 50DMA: Negative
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For CBOE, the sentiment is Neutral. The current price of 232.58 is below the 20-day moving average (MA) of 242.73, below the 50-day MA of 239.76, and above the 200-day MA of 218.22, indicating a neutral trend. The MACD of -2.22 indicates Positive momentum. The RSI at 39.42 is Neutral, neither overbought nor oversold. The STOCH value of 18.54 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for CBOE.

Cboe Global Markets Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
ICE	81 Outperform	$99.90B	33.50	10.89%	1.07%	11.44%	29.10%
NDAQ	78 Outperform	$54.11B	36.03	13.28%	1.06%	23.55%	49.91%
CME	77 Outperform	$96.38B	25.88	13.62%	4.05%	11.15%	13.98%
SPGI	76 Outperform	$164.94B	41.45	11.76%	0.70%	10.72%	23.30%
CBOE	70 Outperform	$24.49B	27.45	20.64%	1.12%	18.99%	17.97%
MSCI	70 Outperform	$43.11B	36.91	-117.99%	1.26%	10.48%	0.98%
Sector *	68 Neutral	$18.06B	11.97	10.24%	3.74%	9.75%	1.30%

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.

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.