Intercontinental Exchange

Methodology

Intercontinental Exchange's derivatives exchange and data operations generate highly predictable earnings from transaction fees and subscriptions with minimal capital requirements. The NYSE and energy derivatives franchises provide monopolistic positioning. This calculation works very well given high-margin recurring revenue, though trading volumes fluctuate with market volatility affecting near-term results.

Methodology

ICE typically commands premium PEG ratios reflecting its dominant positions in energy derivatives, credit default swaps, and NYSE equities trading. The company's data and listings businesses provide high-margin growth. Compare to CME and other exchanges to assess whether ICE's product diversification and mortgage technology assets justify its valuation premium.

Methodology

ICE pays a modest but growing dividend as management balances capital returns with strategic acquisitions to expand exchange franchises. The exceptional cash generation from exchange operations supports growing dividends. PEGY provides context for this financial infrastructure play, where steady yield complements growth from derivatives trading and data services.