ICE Valuation

Intercontinental Exchange Inc

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182.790

-1.65(-0.895%)1D

Overview
Forecast
Valuation
Earnings

ICE Relative Valuation

ICE'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, ICE is overvalued; if below, it's undervalued.

Historical Valuation

Intercontinental Exchange Inc (ICE) is now in the Fair zone, suggesting that its current forward PE ratio of 25.88 is considered Fairly compared with the five-year average of 22.02. The fair price of Intercontinental Exchange Inc (ICE) is between 173.12 to 200.03 according to relative valuation methord.

Relative Value

Fair Zone

173.12-200.03

Current Price：184.44

Fair

25.88

Trailing

Forward

18.43

EV/EBITDA

Intercontinental Exchange Inc. (ICE) has a current EV/EBITDA of 18.43. The 5-year average EV/EBITDA is 16.52. The thresholds are as follows: Strongly Undervalued below 13.23, Undervalued between 13.23 and 14.88, Fairly Valued between 18.17 and 14.88, Overvalued between 18.17 and 19.81, and Strongly Overvalued above 19.81. The current Forward EV/EBITDA of 18.43 falls within the Overvalued range.

20.38

EV/EBIT

Intercontinental Exchange Inc. (ICE) has a current EV/EBIT of 20.38. The 5-year average EV/EBIT is 18.20. The thresholds are as follows: Strongly Undervalued below 14.67, Undervalued between 14.67 and 16.44, Fairly Valued between 19.96 and 16.44, Overvalued between 19.96 and 21.73, and Strongly Overvalued above 21.73. The current Forward EV/EBIT of 20.38 falls within the Overvalued range.

10.44

Intercontinental Exchange Inc. (ICE) has a current PS of 10.44. The 5-year average PS is 8.64. The thresholds are as follows: Strongly Undervalued below 6.54, Undervalued between 6.54 and 7.59, Fairly Valued between 9.70 and 7.59, Overvalued between 9.70 and 10.75, and Strongly Overvalued above 10.75. The current Forward PS of 10.44 falls within the Overvalued range.

21.23

P/OCF

Intercontinental Exchange Inc. (ICE) has a current P/OCF of 21.23. The 5-year average P/OCF is 18.56. The thresholds are as follows: Strongly Undervalued below 11.75, Undervalued between 11.75 and 15.16, Fairly Valued between 21.97 and 15.16, Overvalued between 21.97 and 25.37, and Strongly Overvalued above 25.37. The current Forward P/OCF of 21.23 falls within the Historic Trend Line -Fairly Valued range.

25.18

P/FCF

Intercontinental Exchange Inc. (ICE) has a current P/FCF of 25.18. The 5-year average P/FCF is 21.31. The thresholds are as follows: Strongly Undervalued below 15.40, Undervalued between 15.40 and 18.36, Fairly Valued between 24.27 and 18.36, Overvalued between 24.27 and 27.22, and Strongly Overvalued above 27.22. The current Forward P/FCF of 25.18 falls within the Overvalued range.

Intercontinental Exchange Inc (ICE) has a current Price-to-Book (P/B) ratio of 3.78. Compared to its 3-year average P/B ratio of 2.93 , the current P/B ratio is approximately 29.10% higher. Relative to its 5-year average P/B ratio of 3.01, the current P/B ratio is about 25.77% higher. Intercontinental Exchange Inc (ICE) has a Forward Free Cash Flow (FCF) yield of approximately 3.91%. Compared to its 3-year average FCF yield of 4.89%, the current FCF yield is approximately -20.16% lower. Relative to its 5-year average FCF yield of 4.69% , the current FCF yield is about -16.62% lower.

3.78

P/B

Median3y

2.93

Median5y

3.01

3.91

FCF Yield

Median3y

4.89

Median5y

4.69

Competitors Valuation Multiple

The average P/S ratio for ICE's competitors is 11.52, providing a benchmark for relative valuation. Intercontinental Exchange Inc Corp (ICE) exhibits a P/S ratio of 10.44, which is -9.37% above the industry average. Given its robust revenue growth of 7.99%, this premium appears unsustainable.

P/S

P/E

EV/EBITDA

EV/EBIT

P/S

Revenue Growth

Market Cap

ICE.N

Intercontinental Exchange Inc

Robinhood Markets Inc

Bank of New York Mellon Corp

Performance Decomposition

Market capitalization of ICE increased by 22.39% over the past 1 year. The primary factor behind the change was an increase in P/E Change from 32.25 to 38.18.

The secondary factor is the Revenue Growth, contributed 7.99%to the performance.

Overall, the performance of ICE in the past 1 year is driven by P/E Change. Which is more unsustainable.

7.99%

2.29B → 2.47B

Revenue Growth

-3.98%

34.19 → 32.83

Margin Expansion

18.38%

32.25 → 38.18

P/E Change

22.39%