Cboe Global Markets stock snapshot after recent gains

Cboe Global Markets (CBOE) has drawn fresh attention after a strong run, with the stock up 21% over the past month and 27.7% over the past 3 months, against a last close of US$363.02.

For context, the recent 1-day share price return of 1.21% and 7-day share price return of 3.58% sit within a stronger trend, with a year to date share price return of 46.31% and a 1-year total shareholder return of 63.57%. The 3-year and 5-year total shareholder returns of 170.33% and 253.17% respectively point to sustained momentum in how the market has been pricing Cboe Global Markets over time.

If this kind of sustained performance has you thinking more broadly about opportunities, it can be useful to scan beyond a single stock and review groups of companies that share certain financial or thematic traits, such as 18 top founder-led companies

After such a strong run, Cboe Global Markets now trades above the average analyst price target and carries a low value score. This raises the question: is there still a buying opportunity here, or is the market already pricing in future growth?

Most Popular Narrative: 10% Overvalued

Cboe Global Markets last closed at $363.02, compared with a widely followed fair value narrative of $330.57, which is built using a 7.88% discount rate and detailed earnings assumptions.

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 sits behind that view? Revenue compression assumptions, a sharp shift in margins, and a future earnings multiple all work together to reach that fair value.

Result: Fair Value of $330.57 (OVERVALUED)

However, the story could shift quickly if key S&P index partnerships change, or if new competitors and technology compress Cboe Global Markets’ fees and margins.

Another angle on valuation

The first view leans on analyst targets that imply Cboe Global Markets is about 10% overvalued at $363.02 versus a fair value of $330.57. The SWS DCF model is even more cautious, with a future cash flow value of $191.51, which points to a richer price tag. Which set of assumptions feels closer to yours?

Next Steps

With mixed signals on value and plenty of optimism priced in, it makes sense to move quickly, review the underlying data, and shape your own view by checking the 3 key rewards

Looking for more investment ideas?

If Cboe Global Markets has sharpened your interest, do not stop here. Broaden your watchlist now so you are not late to the next opportunity.

• Target resilient cash generators by scanning companies that appear in the 51 high quality undervalued stocks and see which stocks align with your preferred balance of quality and price.
• Prioritize stability by reviewing the 66 resilient stocks with low risk scores for stocks with lower risk scores that may better match a more cautious investing style.
• Spot potential future standouts early by checking the screener containing 21 high quality undiscovered gems before they reach wider attention.

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.