CME Relative Valuation
CME's fair value is calculated using relative valuation, based on historical P/E and P/S ranges and their premiums/discounts relative to a competitor average, adjusted by weights. If the market price exceeds this fair value range, CME is overvalued; if below, it's undervalued.
Historical Valuation
CME Group Inc (CME) is now in the Fair zone, suggesting that its current forward PE ratio of 23.59 is considered Fairly compared with the five-year average of 24.43. The fair price of CME Group Inc (CME) is between 257.27 to 326.39 according to relative valuation methord.
Relative Value
Fair Zone
257.27-326.39
Current Price:269.15
Fair
23.59
PE
1Y
3Y
5Y
20.81
EV/EBITDA
CME Group Inc. (CME) has a current EV/EBITDA of 20.81. The 5-year average EV/EBITDA is 20.86. The thresholds are as follows: Strongly Undervalued below 15.76, Undervalued between 15.76 and 18.31, Fairly Valued between 23.41 and 18.31, Overvalued between 23.41 and 25.96, and Strongly Overvalued above 25.96. The current Forward EV/EBITDA of 20.81 falls within the Historic Trend Line -Fairly Valued range.
21.47
EV/EBIT
CME Group Inc. (CME) has a current EV/EBIT of 21.47. The 5-year average EV/EBIT is 21.66. The thresholds are as follows: Strongly Undervalued below 16.16, Undervalued between 16.16 and 18.91, Fairly Valued between 24.41 and 18.91, Overvalued between 24.41 and 27.17, and Strongly Overvalued above 27.17. The current Forward EV/EBIT of 21.47 falls within the Historic Trend Line -Fairly Valued range.
14.62
PS
CME Group Inc. (CME) has a current PS of 14.62. The 5-year average PS is 13.94. The thresholds are as follows: Strongly Undervalued below 10.82, Undervalued between 10.82 and 12.38, Fairly Valued between 15.50 and 12.38, Overvalued between 15.50 and 17.06, and Strongly Overvalued above 17.06. The current Forward PS of 14.62 falls within the Historic Trend Line -Fairly Valued range.
22.31
P/OCF
CME Group Inc. (CME) has a current P/OCF of 22.31. The 5-year average P/OCF is 22.55. The thresholds are as follows: Strongly Undervalued below 15.69, Undervalued between 15.69 and 19.12, Fairly Valued between 25.98 and 19.12, Overvalued between 25.98 and 29.41, and Strongly Overvalued above 29.41. The current Forward P/OCF of 22.31 falls within the Historic Trend Line -Fairly Valued range.
22.54
P/FCF
CME Group Inc. (CME) has a current P/FCF of 22.54. The 5-year average P/FCF is 24.46. The thresholds are as follows: Strongly Undervalued below 14.13, Undervalued between 14.13 and 19.30, Fairly Valued between 29.62 and 19.30, Overvalued between 29.62 and 34.79, and Strongly Overvalued above 34.79. The current Forward P/FCF of 22.54 falls within the Historic Trend Line -Fairly Valued range.
CME Group Inc (CME) has a current Price-to-Book (P/B) ratio of 3.44. Compared to its 3-year average P/B ratio of 2.93 , the current P/B ratio is approximately 17.30% higher. Relative to its 5-year average P/B ratio of 2.84, the current P/B ratio is about 21.07% higher. CME Group Inc (CME) has a Forward Free Cash Flow (FCF) yield of approximately 4.20%. Compared to its 3-year average FCF yield of 4.18%, the current FCF yield is approximately 0.47% lower. Relative to its 5-year average FCF yield of 3.81% , the current FCF yield is about 10.26% lower.
3.44
P/B
Median3y
2.93
Median5y
2.84
4.20
FCF Yield
Median3y
4.18
Median5y
3.81
Competitors Valuation Multiple
The average P/S ratio for CME's competitors is 9.40, providing a benchmark for relative valuation. CME Group Inc Corp (CME) exhibits a P/S ratio of 14.62, which is 55.55% above the industry average. Given its robust revenue growth of 18.19%, this premium appears unsustainable.
Performance Decomposition
1Y
3Y
5Y
Market capitalization of CME increased by 12.82% over the past 1 year. The primary factor behind the change was an increase in Revenue Growth from 2.61B to 3.09B.
The secondary factor is the P/E Change, contributed 10.48%to the performance.
Overall, the performance of CME in the past 1 year is driven by Revenue Growth. Which is more sustainable.
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Frequently Asked Questions
Is CME Group Inc (CME) currently overvalued or undervalued?
CME Group Inc (CME) is now in the Fair zone, suggesting that its current forward PE ratio of 23.59 is considered Fairly compared with the five-year average of 24.43. The fair price of CME Group Inc (CME) is between 257.27 to 326.39 according to relative valuation methord.
What is CME Group Inc (CME) fair value?
CME's fair value is calculated using relative valuation, based on historical P/E and P/S ranges and their premiums/discounts relative to a competitor average , adjusted by weights. The fair price of CME Group Inc (CME) is between 257.27 to 326.39 according to relative valuation methord.
How does CME's valuation metrics compare to the industry average?
The average P/S ratio for CME's competitors is 9.40, providing a benchmark for relative valuation. CME Group Inc Corp (CME) exhibits a P/S ratio of 14.62, which is 55.55% above the industry average. Given its robust revenue growth of 18.19%, this premium appears unsustainable.
What is the current P/B ratio for CME Group Inc (CME) as of Jan 08 2026?
As of Jan 08 2026, CME Group Inc (CME) has a P/B ratio of 3.44. This indicates that the market values CME at 3.44 times its book value.
What is the current FCF Yield for CME Group Inc (CME) as of Jan 08 2026?
As of Jan 08 2026, CME Group Inc (CME) has a FCF Yield of 4.20%. This means that for every dollar of CME Group Inc’s market capitalization, the company generates 4.20 cents in free cash flow.
What is the current Forward P/E ratio for CME Group Inc (CME) as of Jan 08 2026?
As of Jan 08 2026, CME Group Inc (CME) has a Forward P/E ratio of 23.59. This means the market is willing to pay $23.59 for every dollar of CME Group Inc’s expected earnings over the next 12 months.
What is the current Forward P/S ratio for CME Group Inc (CME) as of Jan 08 2026?
As of Jan 08 2026, CME Group Inc (CME) has a Forward P/S ratio of 14.62. This means the market is valuing CME at $14.62 for every dollar of expected revenue over the next 12 months.