Cboe Global Markets (CBOE) stock is back in focus after the company reported record May 2026 trading volumes across its four U.S. options exchanges and selected iBoxx index futures products.

The stock has pulled back sharply in the short term, with the share price down 15.5% over the past week and 16.8% over the past month. However, the year-to-date share price return of 13.6% and 1-year total shareholder return of 28.0% still point to positive longer-term momentum as investors weigh record volumes alongside recent executive changes and regulatory developments.

If this kind of volume-driven story has your attention, it can be helpful to widen your search to other market infrastructure and financial technology plays, including 21 top founder-led companies

So with Cboe stock down sharply in recent weeks but still showing strong 1 year and multi year returns, and trading near a reported analyst price target gap of about 16%, are you looking at a genuine opportunity or a market that already prices in future growth?

Most Popular Narrative: 14.7% Undervalued

At a last close of $281.91 versus a narrative fair value around $330, the current price sits below what consensus modelling suggests for Cboe Global Markets.

Cboe is experiencing broad-based growth across derivatives, data, and global spot markets, positioning it to benefit from ongoing increases in electronic trading volume and automation; these trends are likely to drive higher transaction-based revenue and support further top-line growth.

Curious what is built into that gap between price and fair value? The story focuses on future margins, revenue mix shifts and a richer earnings multiple. The full narrative lays out the exact assumptions behind those expectations.

Result: Fair Value of $330 (UNDERVALUED)

However, this depends on key risks, including potential pressure from new bitcoin perpetual futures competition and any disruption to core S&P index option partnerships.

Another View: Multiples Point To A Richer Price

The narrative fair value around $330 suggests Cboe Global Markets may be undervalued, but the earnings multiple tells a tighter story. The stock trades on a P/E of 24x, below the US Capital Markets average of 39.1x, yet above an estimated fair ratio of 15.1x. That gap hints at meaningful valuation risk if sentiment cools or growth expectations soften. The question is which anchor you trust more, the market or the model?

Simply Wall St performs a discounted cash flow (DCF) on every stock in the world every day (check out Cboe Global Markets for example). We show the entire calculation in full. You can track the result in your watchlist or portfolio and be alerted when this changes, or use our stock screener to discover 49 high quality undervalued stocks. If you save a screener we even alert you when new companies match - so you never miss a potential opportunity.

Next Steps

Seeing mixed signals on price and valuation here? If this stock is on your radar, it may be helpful to review the details and compare the story with your own expectations using the support of 3 key rewards.

Ready to hunt for more investment ideas?

If Cboe has you thinking about where to put fresh capital to work, it can pay to scan other high quality ideas before the market moves on.

• Target resilience first by checking companies in the 64 resilient stocks with low risk scores that may help steady your portfolio when sentiment swings.
• Seek quality at a better price by reviewing the 49 high quality undervalued stocks that combine solid fundamentals with potential valuation upside.
• Spot potential standouts early by scanning the screener containing 22 high quality undiscovered gems before they attract broader attention and pricing shifts.

This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.