Cme Group Stock Current Valuation

CME Stock  USD 218.89  1.39  0.64%   
Valuation analysis of CME Group helps investors to measure CME's intrinsic value by examining its available valuation indicators, including the cash flow records, the balance sheet account changes and income statement patterns. As of March 19, 2024, Enterprise Value Multiple is expected to decline to 14.81. Fundamental drivers impacting CME's valuation include:
Price Book
2.9471
Enterprise Value
79.2 B
Enterprise Value Ebitda
16.9755
Price Sales
14.1494
Forward PE
22.8833
Fairly Valued
Today
218.89
Please note that CME's price fluctuation is very steady at this time. Calculation of the real value of CME Group is based on 3 months time horizon. Increasing CME's time horizon generally increases the accuracy of value calculation and significantly improves the predictive power of the methodology used.
Our valuation method for CME Group is useful when determining the fair value of the CME stock, which is usually determined by what a typical buyer is willing to pay for full or partial control of CME. Since CME is currently traded on the exchange, buyers and sellers on that exchange determine the market value of CME Stock. However, CME's intrinsic value may or may not be the same as its current market price, in which case there is an opportunity to profit from the mispricing, assuming the market price will eventually merge with its intrinsic value.
Historical Market  218.89 Real  218.76 Target  224.79 Hype  217.84 Naive  216.87
The real value of a stock, also known as the intrinsic value, is the underlying worth of a company that is reflected in its stock price. It is based on the company's financial performance, assets, liabilities, growth prospects, management team, industry conditions, and other relevant factors. The real value of a stock can be calculated using various methods such as discounted cash flow analysis, price-to-earnings ratio, price-to-book ratio, and other valuation metrics. The real value of a stock may differ from its current market price, which is determined by supply and demand factors such as investor sentiment, market trends, news, and other external factors that may influence the stock's price. It is important to note that the real value of a stock is not a fixed number and may change over time based on changes in the company's performance and other relevant factors.
195.75
Downside
218.76
Real Value
219.87
Upside
Estimating the potential upside or downside of CME Group helps investors to forecast how CME stock's addition to their portfolios will impact the overall performance. We also use other valuation drivers to help us estimate the true value of CME more accurately as focusing exclusively on CME's fundamentals will not take into account other important factors:
Earnings
Estimates (0)
LowProjectedHigh
2.352.452.55
Details
Hype
Prediction
LowEstimatedHigh
216.73217.84218.95
Details
Potential
Annual Dividend
LowForecastedHigh
5.866.056.24
Details
17 Analysts
Consensus
LowTarget PriceHigh
204.56224.79249.52
Details

CME Current Valuation Analysis

CME's Enterprise Value is a firm valuation proxy that approximates the current market value of a company. It is typically used to determine the takeover or merger price of a firm. Unlike Market Cap, this measure takes into account the entire liquid asset, outstanding debt, and exotic equity instruments that the company has on its balance sheet. When a takeover occurs, the parent company will have to assume the target company's liabilities but will take possession of all cash and cash equivalents.
 2021 2022 2023 2024 (projected)
Gross Profit3.9B4.3B4.5B2.5B
Total Revenue4.7B5.0B5.6B3.0B

Enterprise Value

 = 

Market Cap + Debt

-

Cash

More About Current Valuation | All Equity Analysis

Current CME Current Valuation

    
  79.2 B  
Most of CME's fundamental indicators, such as Current Valuation, are part of a valuation analysis module that helps investors searching for stocks that are currently trading at higher or lower prices than their real value. If the real value is higher than the market price, CME Group is considered to be undervalued, and we provide a buy recommendation. Otherwise, we render a sell signal.

CME Current Valuation Driver Correlations

Understanding the fundamental principles of building solid financial models for CME is extremely important. It helps to project a fair market value of CME Stock properly, considering its historical fundamentals such as Current Valuation. Since CME's main accounts across its financial reports are all linked and dependent on each other, it is essential to analyze all possible correlations between related accounts. However, instead of reviewing all of CME's historical financial statements, investors can examine the correlated drivers to determine its overall health. This can be effectively done using a conventional correlation matrix of CME's interrelated accounts and indicators.
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Click cells to compare fundamentals
Enterprise Value can be a useful tool to compare companies with different capital structures. Long term liability and current cash or cash equivalents can have a huge impact on market valuation of a given company.
Competition

In accordance with the recently published financial statements, CME Group has a Current Valuation of 79.2 B. This is 141.33% higher than that of the Capital Markets sector and significantly higher than that of the Financials industry. The current valuation for all United States stocks is significantly lower than that of the firm.

CME Current Valuation Peer Comparison

Stock peer comparison is one of the most widely used and accepted methods of equity analyses. It analyses CME's direct or indirect competition against its Current Valuation to detect undervalued stocks with similar characteristics or determine the stocks which would be a good addition to a portfolio. Peer analysis of CME could also be used in its relative valuation, which is a method of valuing CME by comparing valuation metrics of similar companies.
CME is currently under evaluation in current valuation category among related companies.

CME ESG Sustainability

Some studies have found that companies with high sustainability scores are getting higher valuations than competitors with lower social-engagement activities. While most ESG disclosures are voluntary and do not directly affect the long term financial condition, CME's sustainability indicators can be used to identify proper investment strategies using environmental, social, and governance scores that are crucial to CME's managers, analysts, and investors.
Environment Score
Governance Score
Social Score

CME Fundamentals

About CME Fundamental Analysis

The Macroaxis Fundamental Analysis modules help investors analyze CME Group's financials across various querterly and yearly statements, indicators and fundamental ratios. We help investors to determine the real value of CME using virtually all public information available. We use both quantitative as well as qualitative analysis to arrive at the intrinsic value of CME Group based on its fundamental data. In general, a quantitative approach, as applied to this company, focuses on analyzing financial statements comparatively, whereas a qaualitative method uses data that is important to a company's growth but cannot be measured and presented in a numerical way.
Please read more on our fundamental analysis page.
CME Group Inc., together with its subsidiaries, operates contract markets for the trading of futures and options on futures contracts worldwide. CME Group Inc. was founded in 1898 and is headquartered in Chicago, Illinois. CME operates under Financial Data Stock Exchanges classification in the United States and is traded on NASDAQ Exchange. It employs 3480 people.

CME Investors Sentiment

The influence of CME's investor sentiment on the probability of its price appreciation or decline could be a good factor in your decision-making process regarding taking a position in CME. The overall investor sentiment generally increases the direction of a stock movement in a one-year investment horizon. However, the impact of investor sentiment on the entire stock market does not have solid backing from leading economists and market statisticians.
Investor biases related to CME's public news can be used to forecast risks associated with an investment in CME. The trend in average sentiment can be used to explain how an investor holding CME can time the market purely based on public headlines and social activities around CME Group. Please note that most equities that are difficult to arbitrage are affected by market sentiment the most.
CME's market sentiment shows the aggregated news analyzed to detect positive and negative mentions from the text and comments. The data is normalized to provide daily scores for CME's and other traded tickers. The bigger the bubble, the more accurate is the estimated score. Higher bars for a given day show more participation in the average CME's news discussions. The higher the estimated score, the more favorable is the investor's outlook on CME.

CME Implied Volatility

    
  23.34  
CME's implied volatility exposes the market's sentiment of CME Group stock's possible movements over time. However, it does not forecast the overall direction of its price. In a nutshell, if CME's implied volatility is high, the market thinks the stock has potential for high price swings in either direction. On the other hand, the low implied volatility suggests that CME stock will not fluctuate a lot when CME's options are near their expiration.
Some investors attempt to determine whether the market's mood is bullish or bearish by monitoring changes in market sentiment. Unlike more traditional methods such as technical analysis, investor sentiment usually refers to the aggregate attitude towards CME in the overall investment community. So, suppose investors can accurately measure the market's sentiment. In that case, they can use it for their benefit. For example, some tools to gauge market sentiment could be utilized using contrarian indexes, CME's short interest history, or implied volatility extrapolated from CME options trading.

Pair Trading with CME

One of the main advantages of trading using pair correlations is that every trade hedges away some risk. Because there are two separate transactions required, even if CME position performs unexpectedly, the other equity can make up some of the losses. Pair trading also minimizes risk from directional movements in the market. For example, if an entire industry or sector drops because of unexpected headlines, the short position in CME will appreciate offsetting losses from the drop in the long position's value.

Moving together with CME Stock

  0.76ICE Intercontinental Exchange Sell-off TrendPairCorr

Moving against CME Stock

  0.64FG FG Annuities Life Financial Report 1st of May 2024 PairCorr
  0.61DHIL Diamond Hill InvestmentPairCorr
  0.55BY Byline Bancorp Fiscal Quarter End 31st of March 2024 PairCorr
  0.47VALU Value LinePairCorr
  0.45SPGI SP Global Financial Report 25th of April 2024 PairCorr
The ability to find closely correlated positions to CME could be a great tool in your tax-loss harvesting strategies, allowing investors a quick way to find a similar-enough asset to replace CME when you sell it. If you don't do this, your portfolio allocation will be skewed against your target asset allocation. So, investors can't just sell and buy back CME - that would be a violation of the tax code under the "wash sale" rule, and this is why you need to find a similar enough asset and use the proceeds from selling CME Group to buy it.
The correlation of CME is a statistical measure of how it moves in relation to other equities. This measure is expressed in what is known as the correlation coefficient, which ranges between -1 and +1. A perfect positive correlation (i.e., a correlation coefficient of +1) implies that as CME moves, either up or down, the other security will move in the same direction. Alternatively, perfect negative correlation means that if CME Group moves in either direction, the perfectly negatively correlated security will move in the opposite direction. If the correlation is 0, the equities are not correlated; they are entirely random. A correlation greater than 0.8 is generally described as strong, whereas a correlation less than 0.5 is generally considered weak.
Correlation analysis and pair trading evaluation for CME can also be used as hedging techniques within a particular sector or industry or even over random equities to generate a better risk-adjusted return on your portfolios.
Pair CorrelationCorrelation Matching
When determining whether CME Group is a strong investment it is important to analyze CME's competitive position within its industry, examining market share, product or service uniqueness, and competitive advantages. Beyond financials and market position, potential investors should also consider broader economic conditions, industry trends, and any regulatory or geopolitical factors that may impact CME's future performance. For an informed investment choice regarding CME Stock, refer to the following important reports:
Check out CME Piotroski F Score and CME Altman Z Score analysis.
You can also try the Risk-Return Analysis module to view associations between returns expected from investment and the risk you assume.

Complementary Tools for CME Stock analysis

When running CME's price analysis, check to measure CME's market volatility, profitability, liquidity, solvency, efficiency, growth potential, financial leverage, and other vital indicators. We have many different tools that can be utilized to determine how healthy CME is operating at the current time. Most of CME's value examination focuses on studying past and present price action to predict the probability of CME's future price movements. You can analyze the entity against its peers and the financial market as a whole to determine factors that move CME's price. Additionally, you may evaluate how the addition of CME to your portfolios can decrease your overall portfolio volatility.
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Is CME's industry expected to grow? Or is there an opportunity to expand the business' product line in the future? Factors like these will boost the valuation of CME. If investors know CME will grow in the future, the company's valuation will be higher. The financial industry is built on trying to define current growth potential and future valuation accurately. All the valuation information about CME listed above have to be considered, but the key to understanding future value is determining which factors weigh more heavily than others.
Quarterly Earnings Growth
0.276
Dividend Share
4.4
Earnings Share
8.87
Revenue Per Share
15.512
Quarterly Revenue Growth
0.192
The market value of CME Group is measured differently than its book value, which is the value of CME that is recorded on the company's balance sheet. Investors also form their own opinion of CME's value that differs from its market value or its book value, called intrinsic value, which is CME's true underlying value. Investors use various methods to calculate intrinsic value and buy a stock when its market value falls below its intrinsic value. Because CME's market value can be influenced by many factors that don't directly affect CME's underlying business (such as a pandemic or basic market pessimism), market value can vary widely from intrinsic value.
Please note, there is a significant difference between CME's value and its price as these two are different measures arrived at by different means. Investors typically determine if CME is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, CME's price is the amount at which it trades on the open market and represents the number that a seller and buyer find agreeable to each party.