CME Stock Makes up for Yesterday's Losses

By Chris Stiles • Thursday, February 23 08:59 • Permanent Link

We've been asking ourselves recently if the market has placed a fair valuation on CME after yesterday's drop. Let's dive into some of the fundamental values of this large-cap Financial Services company to determine if there might be an opportunity here for value-minded investors.

CME Group Inc. (Chicago Mercantile Exchange, Chicago Board of Trade, New York Mercantile Exchange, The Commodity Exchange) is an American global markets company. The company belongs to the Financial Services sector, which has an average price to earnings (P/E) ratio of 14.34 and an average price to book (P/B) ratio of 1.57. In contrast, CME has a trailing 12 month P/E ratio of 25.27 and a P/B ratio of 2.277.

CME's PEG ratio is 4.693, which shows that the stock is probably overvalued in terms of its estimated growth. For reference, a PEG ratio near or below 1 is a potential signal that a company is undervalued.

The above analysis is intended for educational purposes only and was performed on the basis of publicly available data. It is not to be construed as a recommendation to buy or sell any security. Any buy, sell, or other recommendations mentioned in the article are direct quotations of consensus recommendations from the analysts covering the stock, and do not represent the opinions of Market Inference or its writers. Past performance, accounting data, and inferences about market position and corporate valuation are not reliable indicators of future price movements. Market Inference does not provide financial advice. Investors should conduct their own review and analysis of any company of interest before making an investment decision.