Is Cboe Global Markets Inc (CBOE) overvalued?
On Equity Rank's model estimate, CBOE trades close to its fair value (9% above it). Cboe Global Markets Inc (CBOE) last closed at $353.27; the multi-method model fair value is $324.59.
| Price | Model fair value | Price vs model |
|---|---|---|
| $353.27 | $324.59 | 9% above |
What the answer rests on
- 5 of 10 valuation methods put CBOE's value above its price and 5 put it below, so the methods disagree.
- To justify today's price, CBOE's free cash flow would need to grow about 5.9% a year for ten years (a reverse discounted cash flow). Over the last three years it actually grew 24.9% a year.
- CBOE trades at 25.1 times its last year's earnings, against a median of 23.5 for 9 profitable Financial Data & Analytics companies.
- Over the past year the price sat below the model fair value on 79% of trading days. The gap ranged from 26% below to 165% above the model fair value.
Read this before relying on it
The model fair value is an estimate from published financial statements. It is not a forecast of where the price goes, and it can be wrong. Within 10% either side we call it close to fair value: valuation models are not precise enough to read more into a smaller gap. Our own lists have no proven edge over the market yet; the live record shows every result, misses included.
Every valuation method behind CBOE's fair value · What prices assume · Other companies