Cme Group Intrinsic Value Calculation – CME GROUP Reports Strong Financial Results for Second Quarter of Fiscal Year 2023

☀️Earnings Overview

CME GROUP ($NASDAQ:CME) announced its fiscal year 2023 second quarter financial results on July 26, 2023, with total revenue for the quarter ending June 30, 2023 reaching USD 1360.2 million, an increase of 9.9% from the same period in the previous year. Net income also rose by 17.4% to USD 777.6 million year over year.

Stock Price

The opening stock price was $192.1 and closed at $198.8, an increase of 3.9% from the previous closing price of $191.2. This surge in the stock price reflects investor confidence in the company’s performance for the quarter. The strong results were driven by higher transaction volumes, fee revenues, and increased interest in open interest across all product lines. CME Group remains committed to providing innovative products and services to its customers. This commitment, coupled with the strong financial performance during the second quarter, points to continued success for the company in the future. Live Quote…

About the Company

Income Snapshot

Below shows the total revenue, net income and net margin for Cme Group. More…

Cash Flow Snapshot

Below shows the cash from operations, investing and financing for Cme Group. More…

Balance Sheet Snapshot

Below shows the total assets, liabilities and book value per share for Cme Group. More…

Key Ratios Snapshot

Some of the financial key ratios for Cme Group are shown below. More…

Analysis – Cme Group Intrinsic Value Calculation

GoodWhale recently conducted an analysis of CME GROUP‘s wellbeing and found that their intrinsic value is around $206.1. This result was determined with GoodWhale’s proprietary Valuation Line algorithm. Currently, the stock is being traded at $198.8, which means the stock is undervalued by 3.6%. We believe this provides a great opportunity for potential investors to invest in a reliable company at a fair price. More…

Peers

CME Group Inc is a Chicago-based financial markets company. It is the largest futures exchange in the world by trading volume and average daily volume, and operates the largest options exchange. CME Group also owns and operates the New York Mercantile Exchange, the Chicago Board of Trade, the Chicago Stock Exchange, and the Dow Jones-UBS Commodity Index. CME Group competes with TMX Group Ltd, MarketAxess Holdings Inc, Global Brokerage Inc, and other financial markets companies.

– TMX Group Ltd ($TSX:X)

TMX Group Ltd is a Canadian financial services company that operates exchanges for multiple asset classes including equities, fixed income, derivatives, and energy. The company also provides clearing and settlement services for financial instruments. TMX Group Ltd has a market cap of 7.19B as of 2022 and a Return on Equity of 13.93%. The company’s main exchanges are the Toronto Stock Exchange, the TSX Venture Exchange, the Montreal Exchange, and the NGX Exchange.

– MarketAxess Holdings Inc ($NASDAQ:MKTX)

As of 2022, MarketAxess Holdings Inc has a market cap of 8.79B and a Return on Equity of 20.2%. The company operates an electronic trading platform that enables fixed-income market participants to trade corporate bonds and other types of fixed-income instruments.

– Global Brokerage Inc ($OTCPK:GLBR)

Global Brokerage Inc is a financial services company that offers online brokerages and related services to customers around the world. The company has a market capitalization of $137,000 as of 2022 and a return on equity of -19.36%. Global Brokerage Inc provides its customers with access to a variety of financial markets, including equities, options, futures, and foreign exchange. The company offers its services through a variety of online platforms and mobile apps.

Summary

CME Group reported strong second quarter financial results on July 26, 2023, with total revenue of USD 1360.2 million, an increase of 9.9% year-over-year, and net income of USD 777.6 million, a growth of 17.4%. Investors responded to the positive news with an increase in the stock price of the company. Analysts are generally bullish on CME Group, as they expect the company to continue to benefit from increasing demand for its services and products. Additionally, their strong financial position and diversified portfolio of services should help the firm remain profitable into the future.