CBOE Cboe Global Markets
A toll bridge on market activity, but even an excellent bridge can command too rich a price.
The business
Cboe operates exchanges and market infrastructure for options, equities, futures, foreign exchange, and digital assets. It earns transaction fees, market-data and access fees, and recurring revenue from proprietary index products, especially options linked to the S&P 500 and VIX.
Quality gate · 80/100
Moat & management
| Moat | wide moat |
| Source | network effect |
| Trajectory | stable |
| Management | excellent |
Deep liquidity attracts more traders and market makers, reinforcing Cboe's leading venues. Exclusive index products, regulatory approvals, and embedded market infrastructure add protection, though rival exchanges and regulation constrain pricing power.
Management has diversified revenue while maintaining strong cash generation, sensible leverage, and modest share-count reduction. Acquisitions warrant scrutiny, but capital allocation has generally strengthened the franchise.
Owner-earnings inputs
| Owner earnings (TTM) | 1.24B |
| Owner-earnings yield | 4.3% |
| Free-cash-flow yield | 9.4% |
| Growth used (normalized) | 7.0% |
| Terminal growth | 3.0% |
| Discount rate (hurdle) | 6.9% |
Key risks
- Regulatory changes reducing transaction fees or exclusive index-product economics
- Competition fragmenting liquidity or weakening pricing power
- Overpriced acquisitions and technology failures causing permanent reputational damage
Catalysts
- Longer trading hours expand proprietary options volumes globally
- Growth in recurring market-data, analytics, and index revenue
Recent news
score · 8 articles
- Does Cboe (CBOE) Expanding Options Hours and Prediction Markets Redefine Its Diversification Story?
- Cboe Global Markets (CBOE) Launches Longer Options Trading And Cboe Predicts
- Cboe Global Markets to Launch Extended Hours for Single-Stock Options. Here's Why It Wins When Volatility Spikes.
- Almost Half of SK Hynix Trading Today Came Within the First Half Hour
- Goldman Sachs Physical Gold ETF vs VanEck Gold Miners ETF. Is Bullion or Miners the Better Way to Invest in Gold in 2026?
- Cboe Expects SK Hynix Options to Begin Trading Shortly After Nasdaq Debut
- SK Hynix options to trade two business days after Nasdaq debut, sources say
- SK Hynix's US listing sparks rush of single-stock ETF filings
⚠ financial — owner earnings ≈ net income · financial — valued by residual income (ROE vs cost of equity on book equity) · Rich vs our conservative value, but a quality business is not a short — stance is WAIT for a better price, not sell.