CME Group Inc. (CME) Valuation

Valuation

Model-based estimates, not advice. The DCF is the discounted-cash-flow value per share; compare it with the price, not as a target.

DCF fair value

+34.0%

$410.08

vs $306.03 price

Levered DCF

$409.39

After debt service

Piotroski score

6 / 9

Average

Altman Z-score

0.6

Distress zone

Rating

B+

Overall 3 / 5

Ratios by fiscal year

Margins and yields are shares of revenue, equity or price; multiples are ×.

Metric	FY2025	FY2024	FY2023	FY2022	FY2021	FY2020	FY2019	FY2018
P/E	24.43×	23.97×	23.74×	22.69×	31.3×	30.96×	33.85×	32.83×
P/B	3.42×	3.15×	2.83×	2.24×	2.99×	2.47×	2.74×	2.48×
P/S	15.06×	13.61×	13.55×	12.02×	17.46×	13.34×	14.73×	14.94×
EV / EBITDA	16.83×	16.67×	16.32×	15.2×	21.01×	19.97×	22.11×	21.18×
Gross margin	86.1%	86.1%	85.1%	85.0%	82.2%	82.5%	81.5%	84.4%
Operating margin	64.9%	64.1%	61.6%	60.1%	56.4%	54.0%	53.2%	60.5%
Net margin	62.0%	57.5%	57.8%	53.6%	56.2%	43.1%	43.5%	45.5%
Current ratio	1.03×	1.01×	1.02×	1.01×	1.01×	1.01×	1.03×	1.01×
Debt / equity	0.12×	0.13×	0.13×	0.13×	0.13×	0.13×	0.14×	0.17×
Interest coverage	32.61×	24.43×	21.55×	18.54×	15.85×	15.87×	14.54×	16.54×
Dividend yield	4.0%	4.3%	4.3%	4.4%	2.7%	3.2%	2.4%	3.3%
Payout ratio	97.2%	101.7%	100.3%	97.9%	83.0%	100.2%	80.1%	109.6%

Key metrics by fiscal year

Metric	FY2025	FY2024	FY2023	FY2022	FY2021	FY2020	FY2019	FY2018
Return on equity	14.1%	13.3%	12.1%	10.0%	9.6%	8.0%	8.1%	7.6%
Return on invested capital	8.4%	8.5%	7.4%	6.4%	5.6%	5.6%	5.5%	5.0%
Return on assets	2.0%	2.6%	2.5%	1.5%	1.3%	1.7%	2.8%	2.5%
Free cash flow yield	4.3%	4.3%	4.5%	4.9%	2.8%	3.9%	3.4%	3.6%
Earnings yield	4.1%	4.2%	4.3%	4.5%	3.2%	3.2%	3.0%	3.0%
Enterprise value	$97.2B	$84B	$76.1B	$61B	$82.5B	$66.9B	$73.9B	$67.4B
Net debt / EBITDA	-0.17×	0.11×	0.11×	0.18×	0.16×	0.54×	0.66×	0.95×
Cash conversion cycle (days)	7	-0	-5	-24	13	5	12	-16