CBOE Stock Risk & Deep Value Analysis

Cboe Global Markets Inc

Financial Services • Financial Data & Stock Exchanges

DVR Score

1.0

out of 10

Distressed

What You Need to Know About CBOE Stock

We analyzed Cboe Global Markets Inc using our deep value framework. Sign in to see our full verdict and DVR Score.

We ran CBOE through our deep value framework — analyzing financial health, distress signals, competitive moat, and risk factors. Our risk assessment: Moderate. Here's what we found.

Updated Mar 14, 2026•Run Fresh Analysis →

CBOE Risk Analysis & Red Flags

Risk Matrix

Overall

Moderate

Financial

Low

Market

Medium

Competitive

Medium

Execution

Low

Regulatory

Medium

Upcoming Risk Events

📅
Sustained period of low market volatility impacting VIX-related products
📅
Significant global economic downturn reducing trading volumes
📅
Adverse regulatory changes in digital asset markets
📅
Increased competitive pressure from rival exchanges or alternative trading systems

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What Does Cboe Global Markets Inc (CBOE) Do?

Market Cap

$26.02B

Sector

Financial Services

Industry

Financial Data & Stock Exchanges

Employees

1,685

Cboe Global Markets, Inc., through its subsidiaries, operates as an options exchange in the United States and internationally. It operates through six segments: Options, North American Equities, Europe and Asia Pacific, Futures, Global FX, and Digital. The Options segment trades in listed market indices. Its North American Equities segment trades in listed U.S. and Canadian equities. This segment also offers exchange-traded products (ETP) transaction and listing services. The Europe and Asia Pacific segment provides pan-European listed equities and derivatives transaction services, ETPs, exchange-traded commodities, and international depository receipts, as well as ETP listings and clearing services. Its Futures segment offers and trades in futures and other related products. The Global FX segment provides institutional foreign exchange (FX) trading and non-deliverable forward FX transactions services. Its Digital segment offers Cboe Digital, an operator of the United States based digital asset spot market and a regulated futures exchange; Cboe Clear Digital, a regulated clearinghouse; licensing of proprietary market data; and access and capacity services. It has strategic relationships with S&P Dow Jones Indices, LLC; Frank Russell Company; FTSE International Limited; and MSCI Inc. The company was formerly known as CBOE Holdings, Inc. and changed its name to Cboe Global Markets, Inc. in October 2017. Cboe Global Markets, Inc. was founded in 1973 and is headquartered in Chicago, Illinois.

Visit Cboe Global Markets Inc Website

Investment Thesis

Cboe Global Markets is a high-quality, dividend-paying financial infrastructure play with strong competitive moats, benefiting from global derivatives growth, increasing demand for market data, and strategic expansion into nascent digital asset markets. While not a 10x growth opportunity in 3-5 years, it represents a reliable, long-term compounder with resilient cash flows and a solid growth trajectory within its industry.

Is CBOE Stock Undervalued?

Cboe Global Markets is a well-established, highly profitable financial exchange operator with robust competitive advantages including network effects, regulatory barriers, and proprietary products like VIX. Its strategic investments in global derivatives, data & analytics, and Cboe Digital position it for continued solid growth and market leadership in its segments. However, as a large-cap company with a $30.34B market cap, achieving a 10x return to reach over $300B in 3-5 years is highly improbable for an exchange operator of its maturity. While an excellent long-term compounder, it lacks the early-stage disruption or extreme undervaluation necessary for such multi-bagger potential within the specified timeframe. No material changes since the last analysis justify a significant score adjustment for 10x growth potential.

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CBOE Price Targets & Strategy

12-Month Target

$325.00

Bull Case

$360.00

Bear Case

$250.00

Entry Strategy

Dollar-cost average on market pullbacks, targeting entries below $280.

Exit Strategy

Long-term holding for income and steady growth; re-evaluate if P/E ratio exceeds 30x consistently without significant growth acceleration.

Portfolio Allocation

2-4% for moderate risk tolerance (as a stable, core holding, not a 10x play).

Price Targets & Strategy

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Is CBOE Financially Healthy?

Valuation

P/E Ratio

26.74

Price/Book

5.33

Other

Dividend Yield

116.00%

Does CBOE Have a Competitive Moat?

Moat Rating

🏰 Wide

Moat Trend

Stable to Expanding

Moat Sources

5 Identified

Network EffectsSwitching CostsIntangible Assets/IPEfficient ScaleRegulatory Barriers

Cboe's moat is highly durable, stemming from the structural nature of financial exchanges. Liquidity begets liquidity (network effect), institutional inertia creates high switching costs, and regulatory hurdles make it extremely difficult for new entrants. Proprietary products like VIX further solidify its unique position.

Moat Erosion Risks

•Significant technological disruption (e.g., from fully decentralized exchanges gaining mainstream adoption)
•Material changes in regulatory frameworks that favor new market structures or reduce incumbent advantages
•Sustained periods of extremely low market volatility impacting its key VIX franchise

CBOE Competitive Moat Analysis

CBOE Market Intelligence

Sentiment & Insider Activity

Social Sentiment

Neutral

Institutional Sentiment

Positive

Insider Activity (Form 4)

Routine, no significant cluster buying or selling observed recently.

Options Flow

Generally balanced, with institutional hedging and income strategies prevalent. No unusual high-volume speculative activity.

Earnings Intelligence

Next Earnings

2026-05-02 (Estimated for Q1 2026)

Surprise Probability

Medium

Historical Earnings Pattern

Typically exhibits moderate stock price movements post-earnings, reacting more significantly to changes in forward guidance or major shifts in trading volumes/market conditions rather than minor beats/misses.

Key Metrics to Watch

Net transaction fees and non-transaction revenue growthGlobal derivatives and European equities market shareCboe Digital transaction volumes and recurring revenueOperating expenses and margin expansion

Competitive Position

Top Competitor

CME

Market Share Trend

Stable to slightly gaining in key strategic areas like European equities and certain derivatives, while working to establish a meaningful share in nascent digital asset markets.

Valuation vs Peers

Generally trades in line with or at a slight premium to peers (e.g., CME, ICE) on P/E and EV/EBITDA, reflecting its strong market position and growth initiatives.

Competitive Advantages

•Dominant position in options and volatility products (VIX)
•Extensive global exchange network and multi-asset class offerings
•Strong network effects creating deep liquidity pools
•High regulatory barriers to entry in the exchange space

Market Intelligence

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What Could Drive CBOE Stock Higher?

Near-Term (0-6 months)

•Q1 2026 Earnings Report (estimated early May 2026)
•Monthly trading volume reports for derivatives and equities
•Updates on Cboe Digital's regulatory progress and volume growth

Medium-Term (6-18 months)

•Further expansion of European derivatives and equities market share
•New product launches or enhancements in data & analytics segment
•Strategic partnerships to boost Cboe Digital's ecosystem

Long-Term (18+ months)

•Increased global adoption and institutionalization of digital assets
•Expansion into new geographic markets (e.g., Asia-Pacific)
•Continued shift towards electronic and algorithmic trading across asset classes

Catalysts & Growth Drivers

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What's the Bull Case for CBOE?

✓
Acceleration in Cboe Digital's volumes and revenue demonstrating early market leadership
✓
Consistent expansion of non-transaction revenue streams
✓
Sustained growth in global derivatives trading volumes
✓
Clear and favorable regulatory developments for digital assets

Bull Case Analysis

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Compare CBOE to Similar Stocks

See how Cboe Global Markets Inc stacks up against related companies in our head-to-head analysis.

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Important Disclaimer – Not Financial Advice

Deep Value Reports is an independent research platform for educational and informational purposes only. We are not financial advisors, investment advisors, or licensed professionals. The analysis, scores, and information provided on this page for CBOE (Cboe Global Markets Inc) should not be construed as personalized investment advice, a recommendation to buy or sell any security, or an offer to provide investment advisory services.

All investments involve risk, including the potential loss of principal. Past performance does not guarantee future results. Always conduct your own research, consider your financial situation, and consult with a qualified financial advisor before making any investment decisions.