Is Intercontinental Exchange Inc (ICE) overvalued?
On Equity Rank's model estimate, ICE trades 20% above its fair value. Intercontinental Exchange Inc (ICE) last closed at $172.27; the multi-method model fair value is $142.92.
| Price | Model fair value | Price vs model |
|---|---|---|
| $172.27 | $142.92 | 21% above |
What the answer rests on
- 1 of 12 valuation methods put ICE's value above its price and 11 put it below, so the methods mostly agree.
- To justify today's price, ICE's free cash flow would need to grow about 6.4% a year for ten years (a reverse discounted cash flow). Over the last three years it actually grew 11.8% a year.
- ICE trades at 23.8 times its last year's earnings, against a median of 30.8 for 8 profitable Fintech companies.
- Over the past year the price sat below the model fair value on 0% of trading days. The gap ranged from 1% above to 37% 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 ICE's fair value · What prices assume · Other companies