How Does This Market Operator Earn?
CME Group runs marketplaces where financial contracts are traded and cleared. It earns revenue from activity tied to those markets, supported by the infrastructure around trading and post-trade services. The business sits inside financial services, with a scale that places it among the larger public companies in the space at about USD 109.4 billion in market value. Its role is less about taking market risk and more about operating the venue and systems that others rely on.
Are Margins And Cash Flow Holding Up?
FundamentalsFor 2025, reported in USD, revenue was USD 6.5 billion, alongside EBIT of USD 4.2 billion and net income of USD 4.1 billion. Revenue grew 6.4% versus the prior year, with trailing margins remaining very high, including a 95.97% gross margin and an 81.31% operating margin.
Cash on the balance sheet was USD 4.4 billion against total debt of USD 3.4 billion. A cash flow proxy of about USD 3.2 billion (built from after-tax EBIT plus depreciation and amortization, less capital spending, and excluding working-capital changes) sits alongside depreciation and amortization of USD 223.4 million.
Is The Market Overpaying For Stability?
DCF / MultiplesAt USD 305.11, the share price sits above the weaker fair-value outcome but well below the central and stronger outcomes from the DCF range. The headline multiples—about 26.87x trailing earnings and 19.85x EV/EBITDA—frame the stock as priced for a business that can keep producing substantial profits relative to revenue.
Constructive But Valuation Sensitive
TakeawayCME looks built around durable, fee-driven market infrastructure. The current pricing still leaves room for a wide range of outcomes. The case works best if margins and cash generation stay elevated. It weakens if profitability compresses or growth fades. Overall, the setup leans constructive, but not without valuation risk.