Cboe Global Markets (CBOE) AI Stock Analysis

• Market Cap: $23.34B
• Dividend Yield: 1.13%
• Average Volume (3M): 877.31K
• Price to Earnings (P/E): 29.2
• Beta (1Y): -0.09
• Revenue Growth: 15.76%
• EPS Growth: 1.97%
• Country: US
• Employees: 1,685
• Sector: Financial
• Sector Strength: 78
• Industry: Financial - Data & Stock Exchanges
• EPS (TTM): 2.50
• Shares Outstanding: 104,713,350
• 10 Day Avg. Volume: 726,348
• 30 Day Avg. Volume: 877,311
• PEG Ratio: -1.03
• Price to Book (P/B): 3.85
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 22.56
• Enterprise Value/Market Cap: 0.63
• Enterprise Value/Revenue: 0.91
• Enterprise Value/Gross Profit: 6.06
• Enterprise Value/Ebitda: 2.76
• 1Y Price Target: $227.09
• Price Target Upside: 0.57% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 12

• Rating: 78 Outperform
• Price Target: ―

Cboe Global Markets receives a strong overall score, driven by its solid financial performance and positive earnings call outcomes. The company's strategic initiatives in derivatives and global expansion offer promising growth prospects. While technical indicators suggest caution due to potential overbought conditions, the strong financial foundation and effective cash flow management provide stability. The CEO transition is seen as a positive development, with experienced leadership poised to sustain growth.

Positive Factors

Crypto Products Demand

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

Derivatives Revenue Growth

Derivatives revenue growth was in the midteens, driven by record volumes in proprietary index and multi-listed options.

Product Expansion

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

Negative Factors

EPS Growth Concerns

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

Exchange Volume Decline

A significant sequential decline in exchange volumes is expected in the second half, with a forecasted -6% half-over-half 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., 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, 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 exhibits strong financial health across all key metrics. The company is experiencing steady revenue and profit growth, supported by strong margins and efficient operational performance. Its balance sheet is solid, with a healthy equity position and manageable leverage. Cash flow generation is robust, ensuring liquidity and financial flexibility. While liabilities warrant monitoring, Cboe's financials present a positive trajectory and stability in the financial sector.

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
TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement		Total Revenue
4.33B	4.09B	3.77B	3.96B	3.49B	3.43B
	Gross Profit
2.44B	1.61B	1.92B	1.74B	1.19B	1.03B
	EBIT
1.25B	1.10B	1.06B	970.10M	805.90M	662.20M
	EBITDA
1.40B	1.27B	1.27B	1.14B	988.90M	865.90M
	Net Income Common Stockholders
804.90M	764.90M	761.40M	235.00M	529.00M	468.20M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
1.15B	1.03B	600.70M	524.40M	379.00M	337.80M
	Total Assets
8.67B	7.79B	7.49B	7.00B	6.81B	6.52B
	Total Debt
1.60B	1.60B	1.61B	1.87B	1.43B	1.34B
	Net Debt
556.40M	679.00M	1.07B	1.44B	1.09B	1.09B
	Total Liabilities
4.22B	3.51B	3.50B	3.53B	3.21B	3.17B
	Stockholders Equity
4.45B	4.28B	3.98B	3.47B	3.60B	3.35B
Cash Flow		Free Cash Flow
1.78B	1.04B	1.03B	591.30M	545.80M	1.41B
	Operating Cash Flow
1.85B	1.10B	1.08B	651.10M	596.80M	1.46B
	Investing Cash Flow
-148.20M	-141.80M	-55.10M	-835.10M	-352.70M	-430.50M
	Financing Cash Flow
-440.90M	-495.00M	-656.10M	81.70M	-200.30M	-201.70M

Cboe Global Markets Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 225.81
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

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 225.81 is above the 20-day moving average (MA) of 225.54, above the 50-day MA of 220.96, and above the 200-day MA of 209.67, indicating a bullish trend. The MACD of 0.50 indicates Positive momentum. The RSI at 53.02 is Neutral, neither overbought nor oversold. The STOCH value of 50.63 is Neutral, 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
NDAQ	83 Outperform	$49.89B	38.81	11.43%	1.24%	25.89%	16.37%
CME	79 Outperform	$97.64B	27.09	13.40%	1.85%	11.72%	13.31%
ICE	79 Outperform	$101.82B	36.76	10.27%	1.08%	13.25%	10.82%
CBOE	78 Outperform	$23.34B	29.22	18.93%	1.13%	15.76%	1.97%
SPGI	74 Outperform	$157.64B	40.36	11.68%	0.76%	12.98%	42.72%
MSCI	70 Outperform	$42.90B	38.13	-117.99%	1.30%	11.67%	-0.89%
Sector *	64 Neutral	$12.93B	9.70	7.85%	78.03%	12.07%	-7.83%

Cboe Global Markets Corporate Events

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.