Tradeweb Markets (TW) AI Stock Analysis

• Market Cap: $31.78B
• Dividend Yield: 0.36%
• Average Volume (3M): 1.26M
• Price to Earnings (P/E): 55.2
• Beta (1Y): 0.46
• Revenue Growth: 28.86%
• EPS Growth: 29.26%
• Country: US
• Employees: 1,412
• Sector: Financial
• Sector Strength: 73
• Industry: Financial - Capital Markets
• EPS (TTM): 0.86
• Shares Outstanding: 116,443,380
• 10 Day Avg. Volume: 1,257,825
• 30 Day Avg. Volume: 1,260,309
• PEG Ratio: 11.68
• Price to Book (P/B): 4.82
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 37.51
• Enterprise Value/Market Cap: 0.96
• Enterprise Value/Revenue: 4.55
• Enterprise Value/Gross Profit: 23.69
• Enterprise Value/Ebitda: 8.21
• 1Y Price Target: $157.30
• Price Target Upside: 15.54% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 11

• Rating: 76 Outperform
• Price Target: $157.00 ▲(15.32%Upside)

Tradeweb Markets exhibits strong financial performance and positive earnings call sentiment, which are significant contributors to the overall score. However, the high P/E ratio suggests potential overvaluation, tempering the positive aspects. Mixed technical indicators indicate some uncertainty in short-term price movements, while corporate events show positive support for leadership and governance.

Positive Factors

Market Share Gains

Tradeweb Markets achieved market share gains in US IG credit, increasing by 57 basis points year-over-year to 19.6%.

Trading Volume Growth

Tradeweb Markets reported a 33% year-over-year growth in quarterly volumes for 2Q25.

Negative Factors

Market Share Issues

Credit market share was under the microscope after volume data disclosed earlier this month caused the stock to fall 11%, the largest single-day decline since 2020.

Share Price Concerns

Share price outperformance YTD and premium valuation may pose concerns for future growth.

Tradeweb Markets Business Overview & Revenue Model

Company Description

Tradeweb Markets Inc. builds and operates electronic marketplaces in the Americas, Europe, the Middle East, Africa, Asia Pacific, and internationally. The company's marketplaces facilitate trading in a range of asset classes, including rates, credit, money markets, and equities. It offers pre-trade data and analytics, trade execution, and trade processing, as well as post-trade data, analytics, and reporting services. The company provides flexible order and trading systems to institutional investors in 45 markets across 25 currencies. It also offers a range of electronic, voice, and hybrid platforms to approximately 300 dealers and financial institutions on electronic or hybrid markets with Dealerweb platform; and trading solutions for financial advisory firms and traders with Tradeweb Direct platform. The company serves a network of approximately 2,500 clients in the institutional, wholesale, and retail client sectors. Its customers include asset managers, hedge funds, insurance companies, central banks, banks and dealers, proprietary trading firms, retail brokerage and financial advisory firms, and regional dealers. Tradeweb Markets Inc. was founded in 1996 and is headquartered in New York, New York. Tradeweb Markets Inc. is a subsidiary of Refinitiv Parent Limited.

How the Company Makes Money

Tradeweb Markets generates revenue primarily through transaction fees and subscription fees. The company earns transaction fees based on the volume and value of trades executed on its platform, making its revenue somewhat dependent on market activity and trading volumes. Additionally, Tradeweb offers data and analytics services through a subscription model, providing clients with market data, trading insights, and analytical tools. The company also benefits from strategic partnerships with major financial institutions and trading networks, which help to expand its market reach and enhance its service offerings. Tradeweb's ability to maintain and grow these partnerships is a significant factor in its revenue generation and overall business strategy.

Tradeweb Markets Financial Statement Overview

Summary

Tradeweb Markets demonstrates strong profitability with robust revenue growth, a high gross profit margin, and healthy net, EBIT, and EBITDA margins. The balance sheet is stable with minimal leverage risk, supported by a low debt-to-equity ratio and solid equity position. Cash flow management is strong despite minor fluctuations in free cash flow growth.

Income Statement

Tradeweb Markets has demonstrated strong revenue growth with a TTM growth rate of 20.06% compared to the previous year. The gross profit margin is robust at 70.23%, and the net profit margin is solid at 28.67%. EBIT and EBITDA margins are also healthy at 39.22% and 48.68%, respectively. These metrics indicate efficient operations and strong profitability.

Balance Sheet

The company maintains a very low debt-to-equity ratio of 0.005, showcasing minimal leverage risk. Return on Equity (ROE) is solid at 8.82%, supported by a strong equity position. The equity ratio of 80.57% indicates a very stable financial structure with a majority of assets financed by equity, minimizing risk.

Cash Flow

Tradeweb Markets exhibits a strong operating cash flow to net income ratio of 1.76, indicating excellent cash generation. The free cash flow to net income ratio is similarly robust at 1.62, with a slight decline in free cash flow growth of -1.17%. Overall, cash flow management remains strong despite minor fluctuations.

Breakdown	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	1.73B	1.34B	1.19B	1.08B	892.66M
Gross Profit	1.13B	877.91M	756.36M	669.19M	543.00M
EBITDA	978.68M	733.33M	616.01M	542.88M	428.57M
Net Income	501.51M	364.87M	309.34M	226.83M	166.30M
Balance Sheet
Total Assets	7.27B	7.06B	6.26B	5.99B	5.68B
Cash, Cash Equivalents and Short-Term Investments	1.34B	1.71B	1.26B	972.05M	791.28M
Total Debt	35.75M	27.46M	27.94M	24.33M	34.46M
Total Liabilities	869.11M	1.13B	713.82M	681.24M	660.69M
Stockholders Equity	5.80B	5.37B	4.95B	4.65B	4.30B
Cash Flow
Free Cash Flow	856.78M	684.33M	572.73M	526.67M	400.70M
Operating Cash Flow	897.74M	746.09M	632.82M	578.02M	443.23M
Investing Cash Flow	-969.19M	-132.76M	-60.10M	-259.11M	-62.54M
Financing Cash Flow	-290.26M	-168.17M	-276.70M	-136.10M	-52.69M

Tradeweb Markets Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 136.14
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For TW, the sentiment is Neutral. The current price of 136.14 is below the 20-day moving average (MA) of 139.10, below the 50-day MA of 140.94, and above the 200-day MA of 134.51, indicating a neutral trend. The MACD of -1.38 indicates Positive momentum. The RSI at 44.97 is Neutral, neither overbought nor oversold. The STOCH value of 27.52 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for TW.

Tradeweb Markets Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
VIRT	81 Outperform	$6.81B	12.74	23.87%	2.17%	26.02%	142.79%
TW	76 Outperform	$31.78B	55.21	9.14%	0.36%	28.86%	29.26%
SNEX	72 Outperform	$4.48B	15.52	16.69%	―	67.71%	19.42%
MKTX	70 Outperform	$8.05B	37.26	16.25%	1.42%	7.22%	-15.53%
JEF	67 Neutral	$11.31B	20.77	5.75%	2.92%	1.00%	46.98%
Sector *	64 Neutral	$6.53B	11.09	7.19%	5.09%	23.85%	5.18%
NMR	61 Neutral	$18.65B	8.71	9.88%	5.98%	8.32%	100.90%

Tradeweb Markets Corporate Events

Tradeweb Markets Holds Annual Stockholders Meeting

On May 20, 2025, Tradeweb Markets Inc. held its Annual Meeting of Stockholders where key decisions were made. Stockholders elected Class III directors for a three-year term, ratified Deloitte & Touche LLP as the independent public accounting firm, and approved executive compensation, reflecting confidence in the company’s leadership and financial oversight.

The most recent analyst rating on (TW) stock is a Buy with a $119.00 price target. To see the full list of analyst forecasts on Tradeweb Markets stock, see the TW Stock Forecast page.