Cboe Global Markets, Inc.
CBOE
Security & Commodity Brokers, Dealers, Exchanges & Services
Mkt Cap
$19.13BPE
27.09Debt
$1.6BCash
$1.732BEV
$19BFCF
$1.066BP/E Ratio
27.09Debt
$1.6BCash
$1.732BEV
$19BFCF
$1.066BCboe Global Markets, Inc., through its subsidiaries, operates as an options exchange worldwide. It operates through six segments: Options, North American Equities, Europe and Asia Pacific, Futures, Global FX, and Digital. The Options segment trades in listed market indices. The North American Equities segment trades in listed U.S. and Canadian equities. This segment also offers exchange-traded products (ETP) transaction and listing services. The Europe and Asia Pacific segment provides pan-European listed equities and derivatives transaction services, ETPs, exchange-traded commodities, and international depository receipts, as well as ETP listings and clearing services. The Futures segment trades in futures. The Global FX segment provides institutional foreign exchange (FX) trading and non-deliverable forward FX transactions services. The Digital segment offers Cboe Digital, an operator of the United States based digital asset spot market and a regulated futures exchange; Cboe Clear Digital, a regulated clearinghouse; licensing of proprietary market data; and access and capacity services. The company has strategic relationships with S&P Dow Jones Indices, LLC; IHS Markit Ltd.; DJI Opco, LLC; Frank Russell Company; FTSE International Limited; and MSCI Inc. The company was formerly known as CBOE Holdings, Inc. and changed its name to Cboe Global Markets, Inc. in October 2017. Cboe Global Markets, Inc. was founded in 1973 and is headquartered in Chicago, Illinois.
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DCF
Discounted Cash Flow Valuation of Cboe Global Markets, Inc.
Value
Growth
%
%
Discount
%
%
Multiple
| g\r | +10% | +11% | +12% | +13% | +14% |
|---|---|---|---|---|---|
| 0% | 10 | 9 | 8 | 8 | 7 |
| +1% | 11 | 10 | 9 | 8 | 8 |
| +2% | 13 | 11 | 10 | 9 | 8 |
| +3% | 14 | 13 | 11 | 10 | 9 |
| +4% | 17 | 14 | 12 | 11 | 10 |
| Years | 0 | 1 | 2 | 3 | 4 | 5 | 6 | 7 | 8 | 9 | 10 | TV |
|---|---|---|---|---|---|---|---|---|---|---|---|---|
| FCF | $1.066B | $1.252B | $1.453B | $1.666B | $1.888B | $2.113B | $2.335B | $2.549B | $2.747B | $2.922B | $3.068B | $30.68B |
| DCF | $1.088B | $1.099B | $1.095B | $1.079B | $1.05B | $1.01B | $958.2M | $897.9M | $830.6M | $758.4M | $7.584B | |
| Value | $17.45B | |||||||||||
In the chart Earnings are multiplied by this value.
Earnings Growth 12%
Earnings Stability 40%
Competitiveness and MOAT
High margins render the company resilient under dire circumstances, hence able to drive competitors out or acquire them. ROE and ROA measure the average flow generated by each invested dollar. Their marginal value is a forecast of future growth, and it is considered by Buffett and Munger the most important single indicator.
| Years | 12-2014 | 12-2015 | 12-2016 | 12-2017 | 12-2018 | 12-2019 | 12-2020 | 12-2021 | 12-2022 | TTM |
|---|---|---|---|---|---|---|---|---|---|---|
| Net Margin | 31% | 32% | 28% | 18% | 15% | 15% | 14% | 15% | 5.9% | 19% |
| ROA | 82% | 84% | 64% | 7.1% | 11% | 11% | 10% | 12% | 7% | 13% |
| ROE | 75% | 79% | 58% | 13% | 13% | 11% | 14% | 15% | 6.8% | 19% |
What is the average Net Margin?
The average Net Margin over the past 5 years is +13.75%.
What is the trend of Net Margin?
The trend of Net Margin over the past 5 years is -1.75%.
What is the average Return on Assets (ROA)?
The average ROA over the past 5 years is +9.64%.
What is the trend of Return on Assets (ROA)?
The trend of ROA over the past 5 years is +0.03%.
What is the average Return on Equity (ROE)?
The average ROE over the past 5 years is +12.03%.
What is the trend of Return on Equity (ROE)?
The trend of ROE over the past 5 years is -0.64%.
Safety & Stabiliy
Being debt the number one cause of investment losses and company death, the ratio Debt/FCF is of utmost importance to guarantee safety. On the other hand the Graham’s stability measures the drawdown of earnings, hence indicating the reliability of the flow generated by the company.
| Years | 12-2014 | 12-2015 | 12-2016 | 12-2017 | 12-2018 | 12-2019 | 12-2020 | 12-2021 | 12-2022 | TTM |
|---|---|---|---|---|---|---|---|---|---|---|
| Debt FCF | - | - | 0.00 | 3.71 | 3.06 | 1.46 | 0.91 | 2.40 | 3.48 | 1.50 |
| Debt Equity | - | - | 0.00 | 0.40 | 0.47 | 0.26 | 0.38 | 0.36 | 0.59 | 0.42 |
| MIN | ||||||||||
| Graham Stability | - | - | 98% | 100% | 100% | 100% | 100% | 100% | 51% | 51% |
What is the Debt/FCF?
The Debt/FCF trailing twelve month is 1.50.
What is the trend of Debt/FCF?
The trend of Debt/FCF over the past 5 years is -0.10.
What is the Graham’s Stability?
Graham’s Stability measure stands at 0.51.
Growth
Growth can be dangerous when forecasting, simply projecting the current growth is in general wrong. A company passes through multiple phases, from being young and unprofitable, to the first periods of profitability and high growth, until it arrives at a period of regime with limited growth. Identifying in which phase the company is in may help forecasting.
| Years | 12-2015 | 12-2017 | 12-2019 | 12-2021 | Trend |
|---|---|---|---|---|---|
| Revenue | 30% | 12% | 17% | 13% | -2.7% |
| Net Income | 2% | -10% | -14% | -56% | -5% |
| Stockholders Equity | 45% | 2.2% | 1.1% | -3.9% | -15% |
| FCF | 16% | 12% | -0.36% | 8.3% | -5.1% |
What is the 5 year Revenue CAGR?
The Revenue CAGR over the past 5 years is +12.17%.
What is the trend of Revenue growth?
The trend of Revenue growth rate over the past 5 years is -2.71%.
What is the 5 year Earnings CAGR?
The Earnings CAGR over the past 5 years is -10.01%.
What is the trend of Earnings growth?
The trend of Earnings growth rate over the past 5 years is -4.97%.
What is the 5 year Equity CAGR?
The Equity CAGR over the past 5 years is +2.18%.
What is the trend of Equity growth?
The trend of Equity growth rate over the past 5 years is -14.6%.
What is the 5 year FCF CAGR?
The FCF CAGR over the past 5 years is +11.91%.
What is the trend of FCF growth?
The trend of FCF growth rate over the past 5 years is -5.11%.