Financial - Data & Stock Exchanges · NASDAQ
Current Price
$287.27
Intrinsic Value
Use the calculator below to estimate
Run a full DCF analysis on CME Group Inc. with auto-filled fundamentals, adjustable assumptions, and sensitivity heatmap.
CME Group Inc., together with its subsidiaries, operates contract markets for the trading of futures and options on futures contracts worldwide. It offers futures and options products based on interest rates, equity indexes, foreign exchange, agricultural commodities, energy, and metals, as well as fixed income products. The company also provides clearing house services, including clearing, settling, and guaranteeing futures and options contracts, and cleared swaps products traded through its exchanges; and trade processing and risk mitigation services. In addition, the company offers a range of market data services, including real-time and historical data services. It serves professional traders, financial institutions, institutional and individual investors, corporations, manufacturers, producers, governments, and central banks. The company was formerly known as Chicago Mercantile Exchange Holdings Inc. and changed its name to CME Group Inc. in July 2007. CME Group Inc. was founded in 1898 and is headquartered in Chicago, Illinois.
ROIC (TTM)
9.4%
ROE (TTM)
15.3%
FCF Yield
4.16%
Based on trailing twelve-month data, CME shows a free cash flow per share of N/A and a ROIC of 9.4%, key inputs for stock valuation using the DCF method. The P/FCF ratio of N/A and FCF yield of 4.16% are important context metrics when evaluating CME's stock valuation relative to peers.
The intrinsic value of CME depends on assumptions about future growth rate, discount rate (WACC), and terminal value. A DCF model discounts projected free cash flows back to present value — small changes in WACC can shift the estimate by 20% or more, which is why sensitivity analysis is essential.
Whether CME is undervalued depends on comparing the DCF-derived intrinsic value to the current market price of $287.27. A positive margin of safety (intrinsic value above market price) suggests potential undervaluation, but the degree of confidence depends on the reliability of your growth and discount rate assumptions.
To perform a DCF valuation on CME Group Inc.: (1) Start with the trailing free cash flow per share as the base, (2) project future FCF growth over 5-10 years based on Financial - Data & Stock Exchanges industry trends and company fundamentals, (3) apply a discount rate (WACC) reflecting CME's risk profile, and (4) add a terminal value for cash flows beyond the projection period.
DCF (Discounted Cash Flow) estimates what a company is worth today based on its future cash generation. For CME Group Inc., this means projecting how much free cash flow the Financial - Data & Stock Exchanges will produce over the next 5-10 years, then discounting those amounts to today's dollars. CME's ROIC of 9.4% shows moderate capital returns.
WACC (Weighted Average Cost of Capital) is the discount rate in a DCF model — it reflects the minimum return investors require. For CME, the capital structure and equity risk premium determine WACC. A 1% increase in WACC typically reduces the intrinsic value by 10-15%.
