How Does This Exchange Operator Earn?
Cboe Global Markets runs exchange and market infrastructure businesses, providing venues and services that support trading and related market activity. The company earns revenue from operating these markets and associated services tied to its exchange platform. It sits within financial services, with a business model centered on market operations rather than lending. At roughly USD 30.9 billion in market value, it’s a large public operator in its niche.
Are Margins and Cash Flow Holding Up?
FundamentalsFor 2025, reported in USD, revenue reached about USD 4.7 billion, with EBIT at roughly USD 1.47 billion and net income of USD 1.1 billion. Revenue grew 15.1% versus the prior year, alongside a trailing operating margin of 33.78% and net profit margin of 25.77%.
On the balance sheet, cash of USD 2.2 billion exceeded total debt of USD 1.4 billion. A cash flow proxy of about USD 1.12 billion, together with depreciation and amortization of USD 122.4 million, rounds out the picture of internally generated funds in the period.
Is the Market Overlooking Fair Value Range?
DCF / MultiplesAt USD 294.91, the shares sit above a weaker-outcome value of USD 232.57, below a central estimate of USD 372.00, and well below a stronger-outcome value of USD 566.17. The current pricing also comes with a 24.99 P/E and 17.34 EV/EBITDA on a trailing basis.
Reasonable but Execution Matters
TakeawayCboe’s net cash position adds resilience if conditions soften. The case still depends on keeping margins and cash generation steady. If profitability fades, the current multiple can compress quickly. Overall, the shares look reasonable, but not without execution risk.