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:
The table below illustrates the output of a discounted cash flow forecast using a variety of scenarios for Cme Group Inc. To summarize, we found that Cme Group Inc ranked in the 59th percentile in terms of potential gain offered. Moreover, under all the scenarios we modelled, the output consistently forecasted positive returns. In terms of the factors that were most noteworthy in this DCF analysis for CME, they are:
39% of the company's capital comes from equity, which is greater than only 20.01% of stocks in our cash flow based forecasting 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 merely 0.52% of tickers in our DCF set.
The weighted average cost of capital for the company is 6. This value is greater than only 0.56% stocks in the Financial Services sector that generate free cash flow.
Terminal Growth Rate in Free Cash Flow
Return Relative to Current Share Price
CB, GHL, AMG, WRB, and AFL 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.
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...