About Cboe Global Markets
Cboe Global Markets, Inc., through its subsidiaries, operates as an options exchange worldwide. It operates through five segments: Options, North American Equities, Futures, Europe and Asia Pacific, and Global FX. The Options segment trades in listed market indices. The North American Equities segment trades in listed U.S. and Canadian equities. This segment also offers exchange-traded products (ETP) transaction and ETP listing services. The Futures segment trades in futures. The Europe and Asia Pacific segment offers pan-European listed equities and derivatives transaction services, ETPs, exchange-traded commodities, and international depository receipts, as well as ETP listings and clearing services.
The Global FX segment provides institutional foreign exchange (FX) trading and non-deliverable forward FX transactions services. The company has strategic relationships with S&P Dow Jones Indices, LLC; FTSE International Limited; Frank Russell Company; MSCI Inc.; and DJI Opco, LLC. The company was formerly known as CBOE Holdings, Inc. and changed its name to Cboe Global Markets, Inc. in October 2017. Cboe Global Markets, Inc. was founded in 1973 and is headquartered in Chicago, Illinois.
CBOE operates in the Finance, Insurance, And Real Estate | Trading | headquartered in CHICAGO, Illinois | approximately 1,540 employees | led by CEO Edward T. Tilly.
The $25.7B question: What happens when a company this good becomes this expensive?
On Wall Street, there are companies that move money, and then there are companies that are the money. Cboe Global Markets, Inc. falls squarely into the latter category — a financial infrastructure so embedded in the global economy that to bet against it feels almost like betting against commerce itself.
At $25.7B in market capitalization, Cboe Global Markets, Inc. (CBOE) currently ranks #258 in our quantitative model, with a composite score of 75.5/100. That places it firmly in "Strong Buy" territory — our highest conviction rating.
But here's the thing about stocks priced for perfection: They leave no room for error.
The Numbers That Matter
Let's start with what's undeniably true. Our 6-factor model gives CBOE the following scores:
| Factor | Score | Weight | Assessment |
|---|---|---|---|
| Quality | 91/100 | 30% | Exceptional |
| Value | 22/100 | 15% | Premium |
| Momentum | 89/100 | 25% | Accelerating |
| Investment | 38/100 | 10% | Low |
| Stability | 89/100 | 10% | Fortress |
| Short Interest | 49/100 | 10% | Normal |
The quality score of 91/100 is the headline here. It reflects profitability metrics that would make most CFOs weep with envy:
- ROE: 24.0%
- Net Margin: 26.4%
- Gross Margin: 41.7%
These aren't just good numbers. They're the kind of numbers that make CBOE a "must-own" stock for institutional portfolios.
The Bull Case
"If you could design a business in a laboratory, it would look something like CBOE."
The bull case writes itself:
- Quality is persistent. Academic research shows high-quality stocks outperform by 4-6% annually over long periods. CBOE is quality defined.
- Momentum is real. With a momentum score of 89/100, the stock has been recognized by the market — and momentum tends to persist.
- The moat is deep. Companies with these margins don't lose them easily. The competitive position is entrenched.
The Bear Case
But here's what keeps value investors up at night:
- Valuation compression risk. At current levels, the stock is priced for continued perfection. Any stumble — a missed quarter, a competitive threat, a macro slowdown — could compress the multiple from 26.2x to the low 20s. That's a 20-30% decline without anything fundamentally "wrong."
- The crowded trade problem. When everyone owns a stock, who's left to buy? Momentum works until it doesn't.
- Mean reversion. Trees don't grow to the sky. At some point, growth decelerates.
The Valuation Framework
| Scenario | Assumption | Fair Value | Upside/Downside |
|---|---|---|---|
| Bear | Multiple compression to 20x | -20% | Downside |
| Base | Current trajectory continues | +10-15% | Modest upside |
| Bull | Momentum accelerates | +30-40% | Significant upside |
The risk-reward is ... fine. Not exceptional. Not terrible. Just fine.
The Bottom Line
Cboe Global Markets, Inc. is exactly what it appears to be: a high-quality business with strong momentum trading at a premium price. Whether that's attractive depends entirely on what kind of investor you are.
For long-term, buy-and-hold investors, CBOE is a core holding. For value investors or short-term traders, look elsewhere.
The company is priced for perfection — and in markets, as in life, perfection is a fragile thing.
⭐⭐⭐⭐⭐ Rating: 5-Star Strong Buy
Score: 75.5/100 | Rank: #258 of 3,571 stocks
Sector: Financials
This analysis reflects the views of Blank Capital Research as of February 16, 2026. It is not investment advice. Past performance does not guarantee future results.