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:
Below please find a table outlining a discounted cash flow forecast for CME, in which we model out valuation assuming a variety of terminal growth rates. To summarize, we found that Cme Group Inc ranked in the 38th percentile in terms of potential gain offered. We should note, though, that all scenearios modelled for this stock suggest it is overvalued. In terms of the factors that were most noteworthy in this DCF analysis for CME, they are:
The company has produced more trailing twelve month cash flow than 87.66% of its sector Financial Services.
Cme Group Inc's weighted average cost of capital (WACC) is 6%; for context, that number is higher than just 10.18% of tickers in our DCF set.
CME'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 just 10.18% of tickers in our DCF set.
Terminal Growth Rate in Free Cash Flow
Return Relative to Current Share Price
WU, NSEC, SLRC, DFIN, and WDR can be thought of as valuation peers to CME, in the sense that they are in the Financial Services sector and have a similar price forecast based on DCF valuation.