Financial - Data & Stock Exchanges · NYSE
Current Price
$156.19
Intrinsic Value
Use the calculator below to estimate
Run a full DCF analysis on Intercontinental Exchange, Inc. with auto-filled fundamentals, adjustable assumptions, and sensitivity heatmap.
Intercontinental Exchange, Inc., together with its subsidiaries, operates regulated exchanges, clearing houses, and listings venues for commodity, financial, fixed income, and equity markets in the United States, the United Kingdom, the European Union, Singapore, Israel, and Canada. It operates through three segments: Exchanges, Fixed Income and Data Services, and Mortgage Technology. The company operates marketplaces for listing, trading, and clearing an array of derivatives contracts and financial securities, such as commodities, interest rates, foreign exchange, and equities, as well as corporate and exchange-traded funds; trading venues, including 13 regulated exchanges and 6 clearing houses; and offers futures and options products for energy, agricultural and metals, financial, cash equities and equity, over-the-counter, and other markets, as well as listings and data and connectivity services. It also provides fixed income data and analytic, fixed income execution, CDS clearing, and other multi-asset class data and network services. In addition, the company offers proprietary and comprehensive mortgage origination platform, which serves residential mortgage loans; closing solutions that provides customers connectivity to the mortgage supply chain and facilitates the secure exchange of information; data and analytics services; and Data as a Service for lenders to access data and origination information. Intercontinental Exchange, Inc. was founded in 2000 and is headquartered in Atlanta, Georgia.
ROIC (TTM)
7.0%
ROE (TTM)
11.6%
FCF Yield
4.85%
Based on trailing twelve-month data, ICE shows a free cash flow per share of N/A and a ROIC of 7.0%, key inputs for stock valuation using the DCF method. The P/FCF ratio of N/A and FCF yield of 4.85% are important context metrics when evaluating ICE's stock valuation relative to peers.
The intrinsic value of ICE 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 ICE is undervalued depends on comparing the DCF-derived intrinsic value to the current market price of $156.19. 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 Intercontinental Exchange, 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 ICE'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 Intercontinental Exchange, 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. ICE's ROIC of 7.0% suggests the company may face challenges generating returns above its cost of capital.
WACC (Weighted Average Cost of Capital) is the discount rate in a DCF model — it reflects the minimum return investors require. For ICE, the capital structure and equity risk premium determine WACC. A 1% increase in WACC typically reduces the intrinsic value by 10-15%.
