Buffett Brain · Research note
Score updated 23 Oct 2026 · analysis from 3 Sept 2026
CBOE· Financial Services
Cboe Global Markets
Cboe Global Markets shows strong management and financial health, but valuation concerns limit clarity on long-term investment potential.
Buffett fit
Partial fit
Owner
56
Durability
63
Management
85
Price
20
Score updated 23 Oct 2026 · analysis from 3 Sept 2026
Buffett's checklist
Each number against Buffett's bar, and where it ranks among Financial Services stocks in our database.
How much profit the business makes on each dollar invested in it. Higher is better.
What is left of each sale after the cost of making the product. A high number often means pricing power.
The cash the business earns for its owners, compared with the price of the whole company.
How fast sales grew each year over the last five years.
How many years of today's profit you pay for at today's price. Lower means cheaper.
How much the company owes compared with what it owns outright. Lower is safer.
The four pillars
How the business measures up on each of Buffett's four tests.
If we owned 100% of Cboe, we'd focus on maintaining its robust financial health, evidenced by a net debt/EBITDA of -0.31 and interest coverage of 41.6.
The full reasoning comes with a free account.
Over the next decade, Cboe's durability hinges on maintaining its competitive position in the financial exchanges sector.
The full reasoning comes with a free account.
Cboe's management has demonstrated effective , as seen in a 5-year share count CAGR of -0.54% and a dividend CAGR of 10.13%.
The full reasoning comes with a free account.
The current valuation metrics, with an earnings yield of 3.39% and yield of 3.17%, suggest that Cboe is priced for perfection.
The full reasoning comes with a free account.
Free account
Read the full Cboe Global Markets analysis free
- The full reasoning behind all four pillars
- The 5-year price target and the return it implies
- What would change the call
- Graham, Lynch and Greenblatt on the same stock
3 full analyses a week · no card needed
For and against
The strongest points on each side, with the numbers behind them.
In its favor
8- 1Net debt/EBITDA of -0.31 indicates a net cash position, enhancing financial flexibility.
- 2Interest coverage ratio of 41.6 suggests strong ability to meet interest obligations.
- 35-year EPS CAGR of 20.69% reflects robust earnings growth.
- 45-year average of 15.97% meets Buffett's threshold for high returns on equity.
Concerns
8- 1 ratio of 29.5 implies high growth expectations, which may not be sustainable.
- 2 yield of 3.17% is below the desired 8-10% range.
- 3 of 52.22% is below the sector's top-quintile cutoff of 81.5%.
- 4 of 34.3% is below the sector's top-quintile cutoff of 58.8%.
Price history
$328+148.4%· 5-year return
Weekly closing prices. Touch or hover the line for a date.
The business
How the business works
Cboe Global Markets operates as a global options exchange, with segments including Options, North American Equities, Futures, Europe and Asia Pacific, and Global FX. It generates revenue primarily through transaction fees, data fees, and access fees. The Options segment is a major contributor, benefiting from strategic relationships with well-known index providers. With a net margin of 25.8%, the company demonstrates solid unit economics, although its of 34.3% is below the sector's top-quintile cutoff.
How this analysis has moved
The call has held across 5 reviews.
Sep 27, 2026 → Oct 22, 2026
What other investors would say
The same company, judged by three other documented playbooks.
Keep researching
Similar companies in Financial Services
Free weekly email
Liked the read on CBOE? Get the next ones on Monday.
Every Monday: the stocks most of the seven investors newly agree on. One email, unsubscribe any time.
Research, not investment advice.
See the Buffett analysis of Cboe Global Markets
The score, the checklist and the full reasoning open with a free account. You get 3 full analyses a week, and this stock is the first one. No card needed.
Create a free account3 full analyses a week · no card needed
Already have an account? Sign in