A Look At Cboe Global Markets (CBOE) Valuation After Record Derivatives Activity And Trading Expansion Plans

Cboe Global Markets (CBOE) has drawn fresh attention after reporting record 2025 derivatives activity and rolling out new futures and options products, while also planning longer trading hours for key index contracts.

See our latest analysis for Cboe Global Markets.

The recent records in options and derivatives volumes, new product launches and extended trading hours sit alongside a steady build in momentum. The company has a 7 day share price return of 5.18%, a year to date share price return of 5.18% and a 1 year total shareholder return of 38.27%. The 3 year and 5 year total shareholder returns of 117.71% and 189.74% point to a strong longer term track record at the current share price of $260.95.

If this kind of derivatives driven story interests you, it can be worth broadening your watchlist to include fast growing stocks with high insider ownership as potential future outperformers.

With Cboe shares around $260.95, trading only slightly below one analyst target of $267.23 and above some neutral views, the key question is whether recent success leaves meaningful upside or if the market is already pricing in future growth.

Most Popular Narrative: 2.5% Undervalued

With Cboe Global Markets closing at $260.95 versus a narrative fair value of about $267.77, the current price sits only modestly below that estimate, which rests on detailed assumptions for earnings, margins and valuation multiples.

The analysts have a consensus price target of $247.467 for Cboe Global Markets based on their expectations of its future earnings growth, profit margins and other risk factors. However, there is a degree of disagreement amongst analysts, with the most bullish reporting a price target of $265.0, and the most bearish reporting a price target of just $216.0.

Read the complete narrative.

Want to see what is baked into that fair value? The narrative leans heavily on margin expansion, measured revenue pressure and a richer future P/E. Curious how those work together?

Result: Fair Value of $267.77 (UNDERVALUED)

Have a read of the narrative in full and understand what’s behind the forecasts.

However, this hinges on concentration in key S&P index contracts and the cost of global expansion, both of which could pressure margins if fee trends disappoint.

Find out about the key risks to this Cboe Global Markets narrative.

Another View: What The P/E Ratio Is Signalling

While the narrative fair value sees Cboe Global Markets as about 2.5% undervalued, the P/E story is more cautious. The current P/E of 27.9x sits above the US Capital Markets industry at 25.6x and well above a fair ratio of 15.1x, although it is still below a 30.9x peer average.

That mix suggests the market is already paying a premium for Cboe and leaves less room for error if earnings or fee trends soften. The question for you is whether that premium feels earned at around $260.95, or if you would want a wider margin of safety.

See what the numbers say about this price — find out in our valuation breakdown.

Build Your Own Cboe Global Markets Narrative

If you see the numbers differently, or prefer to work from your own assumptions and data, you can build a personalised Cboe story in minutes by starting with Do it your way.

A good starting point is our analysis highlighting 2 key rewards investors are optimistic about regarding Cboe Global Markets.

Ready For More Investment Ideas?

If Cboe has caught your eye, do not stop here. The real edge often comes from comparing several quality opportunities side by side using focused screeners.

This article by Simply Wall St is general in nature. We provide commentary based on historical data
and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your
financial situation. We aim to bring you long-term focused analysis driven by fundamental data.
Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material.
Simply Wall St has no position in any stocks mentioned.

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