Cboe Global Markets (CBOE)
Key Statistics
EV/EBIT = 18.6x
ROE = 20.3%
Debt/Equity = 40%
FCF Yield = 5.3%
Dividend Yield = 1.2%
Market Cap = $19.37 billion
The Company
Cboe Global Markets (CBOE) operates trading exchanges. They offer various trading and investment services in North America, Europe, and Asia Pacific.
The company aims to create reliable and efficient financial exchanges. Cboe's subsidiaries include significant exchanges in the United States, Europe, Australia, and Japan, as well as digital asset markets and clearinghouses. They are also a top player in exchange-traded products.
Founded in 1973 in Chicago, Cboe, initially known as the Chicago Board Options Exchange, emerged as the first marketplace for trading listed options. Over the years, the exchange pioneered various financial products and services.
In 2010, Cboe went public. Subsequent strategic acquisitions, including the purchase of BATS Global Markets in 2017, further solidified Cboe's position and expanded its reach into new markets and products.
At the heart of Cboe's offerings are its proprietary trading platforms and exchanges, which facilitate the trading of a diverse range of financial instruments, including options, futures, equities, and foreign exchange. Cboe's flagship products include index options such as the VIX, also known as the "fear index," and options on the S&P 500 index. These products serve as vital tools for investors and traders seeking to hedge against market volatility or speculate on market movements.
The VIX, introduced by Cboe in 2004, has become a cornerstone of modern financial markets, providing insights into market sentiment and volatility expectations. Cboe's exclusive offerings, including SPX options and VIX-related products, position the company as a key player in the derivatives market, attracting a diverse range of market participants, from institutional investors to retail traders.
In addition to its derivatives offerings, Cboe operates various listing venues worldwide, providing issuers with access to capital and secondary liquidity. Through its global listing network, Cboe offers companies and ETFs the opportunity to list their products on a global scale, tapping into a vast pool of investors and liquidity providers.
Customers of Cboe include financial institutions, trading platforms, investors, and professional traders worldwide. They include SEC-registered broker-dealers in the U.S., Canadian registered investment dealers, Australian registered investment dealers, Japanese registered broker-dealers, and more. Access to Cboe markets depends on the type of customer and their eligibility status.