CBOE Stock Analysis — Cboe Global Markets
Sector: Financials
AI Verdict
Cboe trades at 18.2x next year's earnings while analysts expect 24.5% EPS growth—cheap for the growth on offer if its network effect moat holds up.
Competitive Moat
Cboe operates critical infrastructure for options, equities, and derivatives trading, with entrenched network effects from its liquidity pools and proprietary products like the VIX index. Its regulatory licenses and established market position create high barriers to entry for new competitors.
Summary
Cboe's forward P/E of 18.2x with 24.5% expected EPS growth puts it at a rare value-for-growth intersection in exchange operators.
Where It Stands
Cboe is up 18.53% over the past year, trades at 18.2x next year's earnings (below the 14x sector median for financials, but with much higher growth), and its RSI of 46.2 signals a cooling-off period after recent gains.
Key Metrics
- RSI: 46.2 — Neutral
- Trailing P/E: 22.7x
- Forward P/E: 18.2x
- PEG Ratio: 0.89
- Earnings Growth: +0.2%
- Revenue Growth: +0.1%
- Market Cap: $30.4B
- Dividend Yield: 0.01%
- 1-Year Return: 18.53%
- 52-Week High: $371.18
- 52-Week Low: $227.15
Analyst Consensus
10 Buy · 12 Hold · 3 Sell (25 analysts)
Bull Case
You're paying 18.2x forward earnings for 24.5% expected EPS growth, which is cheap for a company with entrenched exchange infrastructure and a trailing PEG of 0.89.
Bear Case
If the P/E multiple compresses to the financials sector median of 14x, the stock would lose about 23% from current valuation levels even if earnings meet expectations.
Catalyst to Watch
Watch for quarterly volume and volatility updates, as a sustained drop in trading activity could undermine the 24.5% EPS growth forecast.