MarketAxess Holdings (MKTX) is back in focus after reporting record total revenue for the first quarter of 2026, driven by record trading volume, commission revenue and a new issue trading solution with DirectBooks.

Despite the strong first quarter update and new DirectBooks solution, the recent share price momentum has been weak. The stock is down 19.4% on a 1 month share price return and the 1 year total shareholder return has declined 41.6%, suggesting sentiment has cooled even as the business reports record revenue.

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So with record revenue, ongoing revenue and net income growth, but a share price that has fallen sharply over 1 and 3 years, is MarketAxess now trading below its worth, or is the market already pricing in future growth?

Most Popular Narrative: 37% Undervalued

At a last close of $123.18 versus a narrative fair value of $195.45, the current pricing sits well below what the widely followed model suggests.

The company's accelerated investments in automation, portfolio trading, and proprietary trading protocols (such as Open Trading and Mid-X) are resulting in demonstrable gains across multiple strategic channels (client-initiated, portfolio trading, dealer-initiated). This is creating new, higher-margin revenue streams that may enhance net margins over time.

Curious what kind of revenue trajectory, margin lift and earnings multiple are built into that fair value? The narrative outlines a specific path for growth, profitability mix and a valuation bridge that provides more detail than the recent share price movement alone.

Result: Fair Value of $195.45 (UNDERVALUED)

However, this depends on assumptions that could be tested if competition pressures fees or if more high grade block trades stay on phone and chat instead of electronic channels.

Next Steps

Given that backdrop, do the current doubts match the underlying strengths you see in the data, or is sentiment overshooting reality? Take a close look at the company specific positives and decide where you stand with the 5 key rewards

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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.