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    Assessing MarketAxess (MKTX) Valuation After Announcing a New $400 Million Share Buyback Plan

    Simply Wall St·12/22/2025 04:35:48
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    MarketAxess Holdings (MKTX) just rolled out a fresh share repurchase plan, with Board approval to buy back up to $400 million of stock. This move often signals management confidence and supports shareholder returns.

    See our latest analysis for MarketAxess Holdings.

    The buyback comes after a choppy stretch, with a 10.55% one-month share price return offering a brief rebound against a year-to-date share price decline and deeply negative multi-year total shareholder returns. This suggests that long-term sentiment remains cautious despite short-term interest.

    If this buyback has you thinking about where else capital might work harder, now could be a good time to explore fast growing stocks with high insider ownership.

    With shares still down sharply over one and five years, yet trading only modestly below analyst targets amid steady revenue and earnings growth, is MarketAxess a contrarian buy now, or is the market already pricing in its future expansion?

    Most Popular Narrative Narrative: 10.7% Undervalued

    With MarketAxess last closing at $178.78 against a narrative fair value of about $200.20, the story hinges on sustained growth and margin recovery.

    The company's accelerated investments in automation, portfolio trading, and proprietary trading protocols (such as Open Trading and Mid X) are resulting in demonstrable gains across multiple strategic channels (client initiated, portfolio trading, dealer initiated), creating new, higher margin revenue streams likely to enhance net margins over time.

    Read the complete narrative.

    Want to see what powers that margin uplift story? This narrative leans on compounding revenue, expanding profitability, and a punchy future earnings multiple. Curious?

    Result: Fair Value of $200.20 (UNDERVALUED)

    Have a read of the narrative in full and understand what's behind the forecasts.

    However, sustained fee compression from rising competition and slower adoption of electronic block trading could cap margin expansion and undermine the undervaluation thesis.

    Find out about the key risks to this MarketAxess Holdings narrative.

    Another Lens on Valuation

    While the narrative fair value points to upside, our numbers based on the price to earnings ratio tell a tougher story. At 30.3 times earnings versus 25.1 times for the US Capital Markets industry and a 14.8 times fair ratio, MarketAxess screens as richly priced. Is investors’ patience already fully in the price?

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

    NasdaqGS:MKTX PE Ratio as at Dec 2025
    NasdaqGS:MKTX PE Ratio as at Dec 2025

    Build Your Own MarketAxess Holdings Narrative

    If you see the numbers differently or want to dig into your own angles, you can build a custom narrative in just a few minutes: Do it your way.

    A good starting point is our analysis highlighting 2 key rewards investors are optimistic about regarding MarketAxess Holdings.

    Ready for more high conviction ideas?

    Before you move on, lock in your next leads by using the Simply Wall St Screener to uncover focused opportunities you might otherwise overlook.

    This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.