Cboe Global Markets

Methodology

Cboe Global Markets' financial exchange operations generate stable transaction fees from options, volatility products, and market data with minimal capital requirements. The company's VIX franchise and derivatives expertise provide competitive advantages. This calculation works well given recurring exchange revenue characteristics, though trading volumes can fluctuate significantly with market volatility affecting near-term earnings.

Methodology

CBOE typically commands moderate premium PEG ratios reflecting steady growth from options market share and data services. The company's monopoly on VIX products provides pricing power, but limited organic growth opportunities constrain multiples versus faster-growing fintech. Compare to other exchange operators like CME and ICE to assess whether CBOE's derivatives focus justifies its positioning.

Methodology

CBOE's modest dividend yield plays a secondary role as the company balances capital returns with strategic acquisitions and technology investments. The exchange operator's strong cash generation supports both dividends and buybacks. PEGY provides some additional context, though the primary value drivers remain market share in derivatives trading and pricing power in proprietary products like VIX futures.