CBOE Global Markets operates as an options exchange and creator of listed options in the United States. The company was founded in 1973 and is based in Chicago, Illinois.
CBOE Price Forecast Based on DCF Valuation
DCF Fair Value Target:
We started the process of determining a valid price forecast for Cboe Global Markets Inc with a discounted cash flow analysis -- the results of which can be found in the table below. To summarize, we found that Cboe Global Markets Inc ranked in the 52th percentile in terms of potential gain offered. More precisely, our analysis suggests the stock is undervalued by approximately 48% on a DCF basis. In terms of the factors that were most noteworthy in this DCF analysis for CBOE, they are:
The stock's equity weight, or the proportion of capital from equity relative to debt, is 92. Its equity weight surpasses that of 84.47% of free cash flow generating stocks in the Financial Services sector.
The business' balance sheet reveals debt to be 8% of the company's capital (with equity being the remaining amount). Approximately merely 18.23% of US stocks with free cash flow have a lower reliance on debt in their capital structure.
CBOE's estimated cost of debt, based largely on its market capitalization and its interest coverage ratio, is 2%; for context, that number is higher than 48.88% of tickers in our DCF set.
Terminal Growth Rate in Free Cash Flow
Return Relative to Current Share Price
For other companies in the Financial Services that have a similar discounted cashflow valuation profile (and ensuing price forecasts) as CBOE, try WRB, MKL, AFL, OCN, and JHG.