Added to YB: 2026-07-30
Pitch date: 2026-07-27
CME [bullish]
CME Group Inc.
+3.48%
current return
Author Info
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Company Info
CME Group Inc., together with its subsidiaries, operates contract markets for the trading of futures and options on futures contracts worldwide.
Market Cap
$93.5B
Pitch Price
$256.51
Price Target
N/A
Dividend
4.37%
EV/EBITDA
18.32
P/E
22.05
EV/Sales
14.07
Sector
Capital Markets
Category
value
The World’s Best Toll Booths, Now on Sale - CME Group Inc.
CME: World's largest derivatives exchange; toll-booth model collecting fees on rate/commodity/FX/equity hedging. Liquidity network effects = self-reinforcing moat, hard to replicate. Benefits from volatility/uncertainty. ~100% gross, 63% net margins. Trades 20x P/E vs 10yr avg 25x. Lower ROIC due to acquisition-built position. Paired w/ ICE (18x vs 21x avg; owns Brent, NYSE, mortgage tech).
Read full article (2 min)