Cboe Global Markets, Inc. (CBOE) stock analysis

P/E below its 5-year median

Cboe Global Markets's P/E of 26.3 is below its own 5-year median of 28.1.

P/E above the industry

Cboe Global Markets's P/E of 26.3 is above the Security & commodity brokers, dealers, exchanges & services median of 25.3.

EV/EBITDA above its 5-year median

Cboe Global Markets's EV/EBITDA of 18.3 is above its 5-year median of 16.6.

P/B above the industry

Cboe Global Markets's price-to-book of 6.50 is above the Security & commodity brokers, dealers, exchanges & services median of 4.26.

Trading above fair value

The share price of $369.19 is above our fair value estimate of $329.25.

Margin of safety under 20%

The price is 12.1% above fair value, so there is no margin of safety.

Revenue growing under 10% a year

Revenue grew 6.0% a year over the last three fiscal years, short of the 10% we look for.

EPS growing 10%+ a year

Diluted EPS grew 68.2% a year over the last three fiscal years.

Earnings growth accelerating

Net income grew 50.6% over the last twelve months, against a 5-year average of 18.6% a year.

Growing slower than the industry

Revenue grew 14.3% over the last twelve months; the Security & commodity brokers, dealers, exchanges & services median is 14.4%.

Guidance lowered

Cboe Global Markets lowered its 2026 depreciation and amortization expense outlook on Oct 30, 2026.

Gross margin improving

Gross margin was 53.9% over the last twelve months, against 49.4% a year earlier.

Return on equity over 15%

Return on equity was 27.4% over the last twelve months and averaged 19.4% over five years.

Return on capital over 10%

Return on invested capital was 36.2%, above the 10% that usually covers the cost of capital.

Return on equity above the industry

Cboe Global Markets's return on equity of 27.4% is above the Security & commodity brokers, dealers, exchanges & services median of 14.2%.

Earnings grew over 5 years

Net income grew 18.6% a year on average over the last five fiscal years.

Net margin above its 5-year average

Net margin was 28.0% over the last twelve months, against a 5-year average of 19.3%.

Net margin above the industry

Cboe Global Markets's net margin of 28.0% is above the Security & commodity brokers, dealers, exchanges & services median of 3.6%.

Low debt

Debt is 24.4% of shareholders' equity, under the 40% we consider low.

Debt falling against equity

Debt to equity fell from 35.9% five years ago to 24.4%.

Debt covered by cash flow

Operating cash flow over the last twelve months equals 182% of total debt.

Interest well covered

Operating income covers interest expense 36.3 times.

Short-term assets cover short-term debts

Current assets are 1.61 times current liabilities.

Low bankruptcy risk

The Altman Z-score is 6.22; above 3 is the safe zone and below 1.8 the distress zone.

Pays a dividend

Cboe Global Markets paid dividends worth 0.6% of the share price over the last twelve months.

Yield below Treasuries

The 0.6% yield is below the 4.4% on a 1-year Treasury.

Yield below the top quarter

The top quarter of US dividend payers yield 3.8% or more; Cboe Global Markets yields 0.6%.

Dividend not cut

The dividend per share has not fallen by more than 10% in any of the last 10 fiscal years.

Covered by earnings

Dividends take 21.4% of net income.

Covered by free cash flow

Dividends take 12.6% of free cash flow.