CBOE Stock Analysis — Cboe Global Markets
Sector: Financials
AI Verdict
Cboe trades at 18.2x next year's earnings with nearly 29% EPS growth expected, which is cheap for the growth on offer if its proprietary products and liquidity moat hold up.
Competitive Moat
Cboe operates core options and volatility trading platforms, with proprietary products like the VIX index that competitors cannot replicate due to intellectual property and entrenched liquidity pools. Its network effects and regulatory licenses make it hard for new entrants to displace its market share in derivatives trading.
Summary
Cboe's 18.2x forward P/E and nearly 29% expected EPS growth make it a rare high-growth name in financial exchanges.
Where It Stands
Shares are up 16.78% over the past year, RSI sits at 61.1 (neutral but edging toward elevated), and the forward P/E of 18.2x is only slightly above the financial sector median of 14x despite much faster growth.
Key Metrics
- RSI: 61.1 — Near Overbought
- Trailing P/E: 23.5x
- Forward P/E: 18.2x
- PEG Ratio: 0.90
- Earnings Growth: +0.3%
- Revenue Growth: +0.1%
- Market Cap: $28.8B
- Dividend Yield: 0.01%
- 1-Year Return: 16.78%
- 52-Week High: $371.18
- 52-Week Low: $227.15
Analyst Consensus
9 Buy · 12 Hold · 3 Sell (24 analysts)
Bull Case
You're paying 18.2x next year's earnings for a company expected to grow EPS by 28.9%, which is cheap for this level of growth in the financial sector.
Bear Case
If the forward P/E reverts to the sector median of 14x, that's a 23% downside from current valuation multiples even if earnings come in as expected.
Catalyst to Watch
Watch for quarterly volume and volatility trends—unexpected drops in options or VIX trading could undermine the bullish growth forecast.