CME Group operates contract markets for the trading of futures and options on futures contracts worldwide. It offers a range of products for trading and/or clearing across various asset classes, based on interest rates, equity indexes, foreign exchange, energy, agricultural commodities, and metals. The company was founded in 1898 and is based in Chicago, Illinois.
CME Price Forecast Based on DCF Valuation
DCF Fair Value Target:
We started the process of determining a valid price forecast for Cme Group Inc with a discounted cash flow analysis -- the results of which can be found in the table below. To summarize, we found that Cme Group Inc ranked in the 57th percentile in terms of potential gain offered. Specifically, our DCF analysis implies the stock is trading below its fair value by an estimated 57%. As for the metrics that stood out in our discounted cash flow analysis of Cme Group Inc, consider:
42% of the company's capital comes from equity, which is greater than merely 20.9% of stocks in our cash flow based forecasting set.
Cme Group Inc's weighted average cost of capital (WACC) is 6%; for context, that number is higher than only 0.65% of tickers in our DCF set.
The company's cost of debt, derived from its interest coverage, tax rate, and market capitalization, is greater than only 0% of stocks in its sector (Financial Services).
Terminal Growth Rate in Free Cash Flow
Return Relative to Current Share Price
Want more companies with a valuation profile/forecast similar to that of Cme Group Inc? See GHL, DFIN, GBL, AMG, and NGHC.
CME Group (CME) September average daily volume ((ADV)) of 15.6M contracts during Q3 and 16.9M contracts during September. Quarterly ADV across asset classes includes: Equity Index ADV of 5.4 million contracts Interest Rate ADV of 5.3 million contracts Options ADV of 2.1 million contracts September ADV across asset classes includes: Equity Index ADV of...