Today we're going to take a closer look at Large-Cap Finance company Cboe Global Markets, whose shares are currently trading at $235.59. We've been asking ourselves whether the company is under or over valued at today's prices... let's perform a brief value analysis to find out!
Cboe Global Markets's P/B and P/E Ratios Are Higher Than Average:
Cboe Global Markets, Inc., through its subsidiaries, operates as an options exchange in the United States and internationally. The company belongs to the Finance sector, which has an average price to earnings (P/E) ratio of 15.92 and an average price to book (P/B) ratio of 1.78. In contrast, Cboe Global Markets has a trailing 12 month P/E ratio of 27.7 and a P/B ratio of 5.28.
Cboe Global Markets has moved 10.9% over the last year compared to 15.1% for the S&P 500 — a difference of -4.2%. Cboe Global Markets has a 52 week high of $255.27 and a 52 week low of $187.3.
Growing Revenues and a Decent Current Ratio:
| 2019 | 2020 | 2021 | 2022 | 2023 | 2024 | |
|---|---|---|---|---|---|---|
| Revenue (M) | $2,496 | $3,427 | $3,495 | $3,958 | $3,774 | $4,094 |
| Interest Income (M) | -$36 | -$38 | -$47 | -$56 | -$50 | -$24 |
| Operating Margins | 22% | 19% | 23% | 12% | 28% | 27% |
| Net Margins | 15% | 14% | 15% | 6% | 20% | 19% |
| Net Income (M) | $375 | $468 | $529 | $235 | $761 | $765 |
| Depreciation & Amort. (M) | $24 | $27 | $34 | $35 | $33 | $34 |
| Diluted Shares (M) | 112 | 109 | 107 | 107 | 106 | 106 |
| Earnings Per Share | $3.34 | $4.27 | $4.92 | $2.19 | $7.13 | $7.21 |
| EPS Growth | n/a | 27.84% | 15.22% | -55.49% | 225.57% | 1.12% |
| Avg. Price | $101.58 | $92.2 | $111.24 | $113.09 | $178.56 | $237.09 |
| P/E Ratio | 30.32 | 21.54 | 22.56 | 51.4 | 24.94 | 32.75 |
| Free Cash Flow (M) | $598 | $1,411 | $546 | $591 | $1,031 | $1,040 |
| CAPEX (M) | $35 | $47 | $51 | $60 | $45 | $61 |
| EV / EBITDA | 21.32 | 16.27 | 15.35 | 26.04 | 18.13 | 22.57 |
| Total Debt (M) | $868 | $1,273 | $1,299 | $2,047 | $1,439 | $1,441 |
| Net Debt / EBITDA | 1.14 | 1.49 | 1.14 | 3.07 | 0.82 | 0.46 |
| Current Ratio | 2.16 | 1.19 | 1.31 | 1.05 | 1.43 | 1.78 |
Cboe Global Markets has growing revenues and increasing reinvestment in the business, strong operating margins with a positive growth rate, and low leverage levels. The company also benefits from a strong EPS growth trend, generally positive cash flows, and a decent current ratio of 1.78.
