CME Group Inc. (CME) Intrinsic Value & DCF Valuation

Financial - Data & Stock Exchanges · NASDAQ

Current Price

$270.27

Intrinsic Value

$329.96

+18.1% margin of safety

What Is CME Group Inc.'s Intrinsic Value?

As of 2026-10-07, the base-case DCF model estimates the intrinsic value of CME Group Inc. (CME) at $329.96 per share, compared with a market price of $270.27, a margin of safety of +18.1%. The base case assumes 10.1% annual free cash flow growth and a 10.0% discount rate.

Across the sensitivity grid the estimate spans $270.89 to $397.4. Intrinsic value is an estimate built on assumptions, not a fact. A higher discount rate or slower growth pushes the estimate down, while stronger cash flow growth lifts it.

How the DCF works · Recalculate with your own assumptions · What is intrinsic value?

Is CME Group Inc. (CME) Undervalued?

At $270.27, CME trades about 18.1% below the base-case intrinsic value estimate. That is a real discount, but it stays short of the 30% margin of safety required before calling a stock undervalued.

Assessment by Charlie Wang, a former auditor

AI MOAT & RISK ANALYSIS
AI Generated · For Reference OnlyCME

COMPETITIVE MOAT

↑Dominant Market Share

CME Group holds a commanding position in futures and options markets, particularly for key commodities and financial instruments. This scale creates significant network effects.

↑High Switching Costs

Clients are deeply integrated into CME's trading and clearing infrastructure. Migrating to a competitor would be complex, costly, and disruptive to operations.

↑Data and Technology Leadership

CME's extensive historical data and advanced trading technology provide a competitive edge. This attracts sophisticated market participants and fosters innovation.

INVESTMENT RISKS

↓Geopolitical and Macroeconomic Volatility

Global events and economic shifts can significantly impact trading volumes and market sentiment. Unforeseen crises can disrupt established patterns.

↓Technological Disruption and Cybersecurity

The rapid pace of technological change and the constant threat of cyberattacks pose significant operational and reputational risks. System failures can be catastrophic.

↓Competition from Alternative Trading Venues

While CME is dominant, other exchanges and platforms are vying for market share. New entrants could challenge established liquidity pools.

Base case

CME base case valuation

Intrinsic Value

$329.96

Margin of safety

+18.1%

Expected annual return

+4.1%

Base case assumptions: 10.1% annual growth, 10.0% discount rate, 23.07x exit multiple, 5 year projection. Data as of 2026-10-07.

This base case uses default assumptions and is not financial advice. The intrinsic value changes significantly when the growth rate or discount rate changes. Open the calculator to set your own assumptions and see the full sensitivity range.

Customize the CME valuation

Adjust the growth rate, discount rate, and exit multiple to see how the intrinsic value and margin of safety for CME Group Inc. respond.

Open DCF Calculator for CME

Or try PE Ratio Valuation for CME →

Company Overview

CME Group Inc., through its various subsidiaries, manages international marketplaces for the exchange of futures and options on futures contracts worldwide. Its extensive array of product offerings includes futures and options linked to a broad spectrum of underlying assets, such as interest rates, equity indices, foreign exchange, agricultural commodities, energy, and metals, alongside fixed-income products. The company additionally furnishes essential clearinghouse services, which entail the verification, settlement, and guarantee of futures, options, and cleared swap agreements traded across its venues. It also offers services for transaction processing and risk mitigation. Furthermore, the organization provides diverse market data services, encompassing both real-time and historical data feeds. Its wide-ranging client base consists of professional traders, financial institutions, both institutional and individual investors, corporations, manufacturers, producers, governments, and central banks. Founded in Chicago, Illinois, in 1898, the enterprise was formerly known as Chicago Mercantile Exchange Holdings Inc. before rebranding as CME Group Inc. in July 2007.

Financial Metrics — CME Stock Valuation Data

Revenue/Share (TTM)

$18.81

FCF/Share (TTM)

$11.70

ROIC (TTM)

9.4%

ROE (TTM)

15.5%

P/FCF

23.1x

EV/EBITDA

18.4x

FCF Yield

4.33%

Debt/Equity

0.13x

On a trailing twelve-month basis, CME generates free cash flow per share of $11.70 alongside a ROIC of 9.4%, both central inputs for a DCF valuation. Its P/FCF ratio of 23.1x and FCF yield of 4.33% then frame how CME is priced against peers on a cash flow basis.

Frequently Asked Questions

What is the intrinsic value of CME?

CME Group Inc. currently generates $11.70 in free cash flow per share. At the current price of $270.27, a DCF model would discount these cash flows at an appropriate WACC and apply a terminal growth rate to arrive at an intrinsic value. The result depends heavily on your growth and discount rate assumptions — a 1% change in WACC typically shifts the fair value estimate by 10-15%. In MiniValuator the model uses a single discount rate that you can edit directly, 10% by default, rather than a computed WACC.

Is CME undervalued?

CME trades at a P/FCF ratio of 23.1x with a free cash flow yield of 4.33%. This P/FCF is in a moderate range. However, whether CME is truly undervalued requires comparing the DCF intrinsic value to the current market price and evaluating whether the margin of safety is sufficient for your risk tolerance.

How do I value CME stock using DCF?

To perform a DCF valuation on CME Group Inc.: (1) Start with the trailing free cash flow per share ($11.70) 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 — with a debt-to-equity of 0.13x, capital structure is an important factor, and (4) add a terminal value for cash flows beyond the projection period.

What is DCF valuation and how does it apply to CME?

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 company will produce over the next 5-10 years, shaped by Financial - Data & Stock Exchanges trends, then discounting those amounts to today's dollars. CME's ROIC of 9.4% shows moderate capital returns.

How does WACC affect CME stock valuation?

WACC (Weighted Average Cost of Capital) is the discount rate in a DCF model — it reflects the minimum return investors require. For CME, with a debt-to-equity ratio of 0.13x, the capital structure directly influences WACC. A 1% increase in WACC typically reduces the intrinsic value by 10-15%. At an EV/EBITDA of 18.4x, the market's implied discount rate can be reverse-engineered for comparison. In MiniValuator you set this discount rate yourself as a single editable number, 10% by default, instead of computing a formal WACC.

Learn More

DCF and P/E value CME with different methods and assumptions, so the two conclusions can differ. Compare the P/E fair value.

Price as of 2026-10-07. Financial data from Financial Modeling Prep (trailing twelve months) · Valuation methodology by Charlie Wang.

This is an estimate, not investment advice.