Cboe Global Markets (CBOE) Just Gave Investors Something To Think About

Cboe Global Markets (CBOE) is back in focus after reporting third quarter earnings on October 30, 2026, with higher revenue, net income, and earnings per share compared with the same period last year.

The strong third quarter update comes after a powerful run in Cboe Global Markets’ shares. The 30 day share price return is 15.98% and the year to date share price return is 42.19%, while the 5 year total shareholder return of 187.57% points to long running momentum that recent earnings and new products such as mini Russell 2000 Index binary options appear to be reinforcing.

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After a surge that has pulled Cboe Global Markets close to analyst targets, the live question is simple: Is most of the upside already in the rear view, or does the current valuation still leave real headroom?

Most Popular Narrative: 46% Overvalued

The narrative fair value for Cboe Global Markets sits at $241.95, well below the latest close of $352.78, which indicates a valuation gap according to that framework.

This view comes from iStock, an investor in the Simply Wall St Community, who argues that a detailed cash flow and dividend build out points to a much lower intrinsic value than the current share price implies.

For CBOE Global Markets, I employed two-stage models for both DCF and DDM analysis given the company's established market position with potential for different growth phases.

The two-stage DCF model with WACC provides the most accurate intrinsic value estimate of $657.85 per share, suggesting significant upside potential from current trading levels.

See why 8 investors see Cboe Global Markets as 46% overvalued.

iStock’s work uses a discount rate of 7.60% and arrives at a fair value of $241.95, which implies the shares are trading well above that estimate. The same framework also flags Cboe Global Markets as expensive relative to an estimated fair P/E ratio, even though the actual P/E of 25x is lower than both the Capital Markets industry average of 36.3x and the peer group average of 30.6x.

The tension here is that the market is paying a premium to this fair value model, yet still pricing the stock below many sector peers on simple earnings ratios. For readers, the key consideration is whether to place more weight on the discounted cash flow work that points to limited value at $352.78, or on the company’s recent 50.8% earnings growth, high quality earnings, and a 25% return on equity that analysts expect to remain elevated at 28.2% in three years.

Result: Fair Value of $241.95 (OVERVALUED)

Still, Cboe Global Markets could see this narrative crack if trading volumes soften materially or if higher discount rates reduce intrinsic value estimates.

Find out about the key risks to this Cboe Global Markets narrative.

Another View: Multiples Point To A Richer Price

Cboe Global Markets screens differently when the focus shifts from narrative fair value to simple earnings multiples. The current P/E of 25x sits well below the Capital Markets industry average of 36.3x and the peer group at 30.6x, yet it is well above a fair ratio estimate of 14.2x. That gap signals investors are paying up for the quality of this exchange operator. The real question is whether you see that premium as justified or as air that could eventually leak out.

See what the numbers say about this price in our valuation breakdown with the See what the numbers say about this price — find out in our valuation breakdown..

Next Steps

Sentiment around Cboe Global Markets is sharply split, so this is the moment to look through the data yourself and decide where you land. To understand why some investors still see upside potential, review the 2 key rewards.

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