CME Group Inc. (CME) Fair Value & PE Analysis
Financial - Data & Stock Exchanges · NASDAQ
Current Price
$263.09
PE Ratio (TTM)
22.2x
Intrinsic Value
$285.46
+7.8% margin of safety
What Is CME Group Inc.'s Fair Value?
As of 2026-07-30, applying a 22.0x earnings multiple to CME Group Inc.'s (CME) earnings per share of $11.87 yields a fair value estimate of $285.46 per share, versus a market price of $263.09.
Fair value from earnings multiples is sensitive to the multiple you choose. Across the sensitivity grid the estimate spans $233.22 to $345.31. This is a relative estimate anchored to earnings, not a statement of fact. For a cash flow based view, see the intrinsic value estimate on the DCF page.
How the PE model works · Recalculate in PE mode · CME intrinsic value (DCF view)
Is CME Group Inc. (CME) Overvalued?
At $263.09, CME trades about 7.8% below its PE-based fair value estimate, a modest discount to its earnings power, though not enough to call it cheap outright.
COMPETITIVE MOAT
↑Dominant Market Share
CME holds a commanding position in futures and options trading, creating a powerful network effect. This scale deters new entrants and reinforces its market leadership.
↑High Switching Costs
Clients are deeply integrated into CME's trading platforms and clearing services. The cost and complexity of migrating to a competitor are substantial, fostering customer stickiness.
↑Data and Technology Infrastructure
CME's extensive data repositories and advanced trading technology provide a significant competitive edge. This infrastructure is difficult and expensive for rivals to replicate.
INVESTMENT RISKS
↓Economic Downturn Impact
A significant economic recession could reduce trading volumes across all asset classes. This would directly impact CME's revenue derived from transaction fees.
↓Competition from Other Exchanges
While dominant, CME faces ongoing competition from other global exchanges. New product launches and strategic partnerships by rivals could erode market share.
↓Interest Rate Volatility
While high rates can increase trading activity, extreme or unpredictable interest rate movements can create market uncertainty. This can lead to reduced participation and hedging needs.
Base case
CME base case PE valuation
Intrinsic Value
$285.46
Margin of safety
+7.8%
Expected annual return
+1.6%
Base case assumptions: 7.3% annual earnings growth, 22x target PE, 10% discount rate, 5 year projection. Data as of 2026-07-30.
This base case uses default assumptions and is not financial advice. The fair value changes significantly when the target PE or earnings growth rate changes. Open the calculator to set your own assumptions and see the full sensitivity range.
Customize the CME PE valuation
Adjust the target PE, earnings growth, and discount rate to see how the fair value and margin of safety for CME Group Inc. respond.
Open PE Calculator for CMECompany 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 PE Stock Valuation Data
PE Ratio (TTM)
22.2x
PEG Ratio
1.53
Earnings Yield
4.51%
ROE (TTM)
15.5%
Revenue/Share (TTM)
$18.81
Dividend Yield
4.28%
Debt/Equity
0.13x
Frequently Asked Questions
What is the PE ratio of CME?
The trailing twelve-month PE ratio of CME reflects how much investors pay per dollar of CME Group Inc.'s earnings. This metric is most useful when compared to Financial - Data & Stock Exchanges peers and the company's own historical range.
Is CME overvalued based on PE ratio?
CME's PE of 22.2x combined with a PEG ratio of 1.53 provides a growth-adjusted perspective. A PEG near 1.0 means the P/E is roughly in line with the earnings growth rate. Keep in mind that PE-based valuation works best for profitable, mature companies — for high-growth or cyclical Financial - Data & Stock Exchanges, a DCF analysis may be more appropriate.
How do I value CME stock using PE ratio?
To value CME Group Inc. using PE: (1) Compare the current PE (22.2x) against the Financial - Data & Stock Exchanges median to assess relative pricing, (2) check the PEG ratio (1.53) to adjust for growth expectations, (3) review the 5-year PE range to identify where the stock sits historically, and (4) estimate fair value by multiplying a target PE by forward EPS estimates. This relative approach complements DCF's absolute valuation.
What is the PEG ratio of CME?
CME's PEG ratio is 1.53, calculated by dividing the PE ratio (22.2x) by the expected earnings growth rate. A PEG near 1.0 means the P/E is roughly in line with the expected earnings growth rate. Note that PEG accuracy depends on the reliability of growth estimates.
Should I use PE ratio or DCF for CME stock valuation?
PE ratio gives a quick relative read — how CME is priced versus Financial - Data & Stock Exchanges peers. DCF provides an absolute value based on projected free cash flows. For CME, with a strong ROE of 15.5%, both methods are worth using — PE for a market-relative check, DCF to stress-test whether fundamentals justify the price. Each method has blind spots: PE ignores capital structure and cash flow quality, while DCF is sensitive to growth and discount rate assumptions.
Learn More
- See CME DCF Valuation → — Intrinsic value via Discounted Cash Flow analysis
- PE Methodology — Step-by-step guide to PE ratio stock valuation
- DCF Methodology — Guide to discounted cash flow analysis
- PE Ratio — Understanding the price-to-earnings ratio
- Intrinsic Value — How to evaluate stock fair value
Related PE Valuations
All Financial Services valuationsP/E and DCF value CME with different methods and assumptions, so the two conclusions can differ. Compare the DCF intrinsic value.
Price as of 2026-07-30. Financial data from Financial Modeling Prep (trailing twelve months) · Valuation methodology by Charlie Wang.
This is an estimate, not investment advice.