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Cboe Global Markets (CBOE)
:CBOE
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Cboe Global Markets
(BATS:CBOE)
Rating:79Outperform
Price Target:
$289.00
▲(18.58% Upside)
Positive Factors
Financial Performance
Cboe reported a record level of revenue, driven by the strength in its derivatives franchise, benefiting from elevated volatility.
International Expansion
Data Vantage revenues accelerated as international expansion efforts continue to gain traction.
Negative Factors
EPS Growth
Once conditions normalize, slowing derivatives momentum is expected to reassert itself, which should weigh on EPS growth.
Market Valuation
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 (CBOE) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$25.49B
Dividend Yield1.03%
Average Volume (3M)887.01K
Price to Earnings (P/E)28.6
Beta (1Y)-0.07
Revenue Growth18.99%
EPS Growth17.97%
CountryUS
Employees1,685
SectorFinancial
Sector Strength71
IndustryFinancial - Data & Stock Exchanges
Share Statistics
EPS (TTM)2.46
Shares Outstanding104,590,130
10 Day Avg. Volume910,403
30 Day Avg. Volume887,008
Financial Highlights & Ratios
PEG Ratio12.82
Price to Book (P/B)4.80
Price to Sales (P/S)5.02
P/FCF Ratio19.75
Enterprise Value/Market Cap0.97
Enterprise Value/Revenue5.43
Enterprise Value/Gross Profit9.79
Enterprise Value/Ebitda16.82
Forecast
1Y Price Target
$249.92Price Target Upside2.55% Upside
Rating ConsensusHold
Number of Analyst Covering16
Cboe Global Markets Business Overview & Revenue Model
Company DescriptionCboe 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 MoneyCboe 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 Earnings Call Summary
Earnings Call Date:Aug 01, 2025
(Q2-2025)
| % Change Since: 1.11%|
Next Earnings Date:Oct 31, 2025
Earnings Call Sentiment Positive
Cboe reported strong financial performance with record-breaking revenue growth across its segments, cost management improvements, and positive developments in the derivatives and data businesses. However, challenges such as the closure of the Japan equities business and a decline in futures segment revenue were noted. Despite these challenges, the company's strategic focus and financial discipline suggest a positive outlook.Q2-2025 Updates
Positive Updates
Record-Breaking Revenue and Growth
Cboe grew net revenue 14% year-over-year to a record $587 million and adjusted diluted EPS by 14% to $2.46, driven by robust volumes in derivatives, strong new sales growth in the Cboe Data Vantage business, and disciplined expense management.
Derivatives Franchise Success
The Derivatives franchise delivered a record quarter with organic net revenue increasing 17% year-over-year. Options volumes increased, with SPX options volumes jumping 21% year-over-year to a new record average daily volume of 3.7 million contracts.
Cash and Spot Markets Growth
Second quarter net revenue was up 11%, with the European cash equities business driving robust performance. The Europe and Asia Pacific segment delivered the strongest year-over-year percentage growth of any Cboe segment for the fourth quarter in a row, achieving a 30% increase.
Cboe Data Vantage Growth
Net revenue for the Data Vantage business improved by 11% year-over-year, driven by international demand and strong new subscription and unit sales.
Cost Management and Expense Guidance
Cboe lowered its full-year expense guidance range due to disciplined cost management and the decision to close the Japanese equities business, resulting in potential annual savings of $10 million to $12 million.
Negative Updates
Closure of Japan Equities Business
Cboe announced the decision to close its Japan equities business, including the Cboe Japan proprietary trading system and Cboe BIDS Japan business, reflecting a focus on directing resources to higher return activities.
Futures Segment Decline
Futures net revenue decreased 14% from the second quarter of 2024, primarily due to lower volumes.
Impact of OCC Margin Changes
Upcoming OCC margin model changes could impact the markets, although Cboe anticipates minimal impact after industry adjustments.
Company Guidance
During Cboe Global Markets' second quarter earnings call, the company reported a record net revenue of $587 million, marking a 14% year-over-year increase, with adjusted diluted EPS also growing by 14% to $2.46. This growth was driven by a 17% increase in derivatives market revenue, an 11% rise in Data Vantage, and an 11% boost in cash and spot markets. The options segment saw a 19% year-over-year growth in net revenue, supported by a 20% increase in total options ADV. Additionally, Cboe's Europe and Asia Pacific segment experienced a 30% year-over-year revenue increase. The company adjusted its full-year expense guidance to a range of $832 million to $847 million, reflecting disciplined expense management and strategic business decisions, such as closing its Japan equities business. It also raised its full-year organic net revenue growth guidance to high single digits. Cboe maintained a strong financial position with $1.2 billion in adjusted cash and a leverage ratio of 1.0x, having repurchased $35 million in shares and returned $66 million to shareholders in dividends during the quarter.Cboe Global Markets Financial Statement Overview
Summary
Cboe Global Markets demonstrates strong financial health with robust revenue growth, efficient operations, and solid profitability. The company maintains a solid balance sheet with manageable leverage and strong equity. Cash flow generation is robust, underscoring financial stability.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.85
Very Positive
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.78
Positive
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.82
Very Positive
| 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
Neutral
243.71
Price Trends
235.54
Positive
227.99
Positive
216.05
Positive
Market Momentum
3.57
Positive
51.35
Neutral
28.80
Neutral
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 243.71 is below the 20-day moving average (MA) of 245.09, above the 50-day MA of 235.54, and above the 200-day MA of 216.05, indicating a neutral trend. The MACD of 3.57 indicates Positive momentum. The RSI at 51.35 is Neutral, neither overbought nor oversold. The STOCH value of 28.80 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for CBOE.
Cboe Global Markets Risk Analysis
Cboe Global Markets disclosed 38 risk factors in its most recent earnings report. Cboe Global Markets reported the most risks in the "Finance & Corporate" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
Cboe Global Markets Peers Comparison
Overall Rating
UnderperformOutperform
Sector (69)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
81 Outperform | $104.60B | 35.08 | 10.89% | 1.02% | 11.44% | 29.10% | |
79 Outperform | $25.49B | 28.57 | 20.64% | 1.03% | 18.99% | 17.97% | |
78 Outperform | $54.74B | 36.66 | 13.28% | 1.04% | 23.55% | 49.91% | |
77 Outperform | $99.00B | 26.59 | 13.62% | 3.86% | 11.15% | 13.98% | |
77 Outperform | $172.23B | 43.36 | 11.76% | 0.66% | 10.72% | 23.30% | |
72 Outperform | $43.77B | 37.48 | -117.99% | 1.24% | 10.48% | 0.98% | |
69 Neutral | €17.26B | 12.49 | 15.03% | 5.53% | -2.95% | -8.40% |
* Financial Sector Average
Performance Comparison
CBOE
Cboe Global Markets
243.71
41.51
20.53%
CME
CME Group
274.70
74.84
37.45%
ICE
Intercontinental Exchange
182.68
27.16
17.46%
SPGI
S&P Global
564.15
71.98
14.63%
MSCI
MSCI
565.72
10.17
1.83%
NDAQ
Nasdaq
95.40
26.31
38.08%
Cboe Global Markets Corporate Events
Executive/Board ChangesBusiness Operations and Strategy
Cboe Global Markets Approves Equity Incentive Increases
Neutral
Jul 17, 2025
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.
Private Placements and FinancingBusiness Operations and StrategyRegulatory Filings and Compliance
Cboe Global Markets Amends Credit Facility Agreement
Positive
Jun 27, 2025
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.
Executive/Board ChangesBusiness Operations and Strategy
Cboe Global Markets EVP David Howson Resigns
Neutral
May 28, 2025
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.
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.