DCF Tool

CME

CME Group Inc – Securities and Commodity Exchanges
As the world's leading and most diverse derivatives marketplace, CME Group enables clients to trade futures, options, cash and OTC markets, optimize portfolios, and analyze data - empowering market participants worldwide to efficiently manage risk and capture opportunities. CME Group exchanges offer the widest range of global benchmark products across all major asset classes based on interest rates, equityindexes, foreign exchange, energy, agricultural products and metals.The company offers futures and options on futures trading through the CMEGlobex® platform, fixed income trading via BrokerTec and foreign exchange trading on the EBS platform. In addition, it operates one of the world's leading central counterparty clearing providers, CME Clearing. With a range of pre- and post-trade products and services underpinning the entire lifecycle of a trade, CME Group also offers optimization and reconciliation services through TriOptima, and trade processing services through Traiana.
Analysis Results
Intrinsic Value $189.55
Latest Price $196.91
Relative Value 4% overvalued
Thoughts on this result? Let us know.
Ad
Cash Flow (Billions)
Analysis Parameters
%
%
%
New Ticker
Ad
Analysis Details
Growth Rate Projection

An exponential growth model was fit to the past cash flow data, giving more weight to more recent years. This model determined a growth rate estimate of 10.0%.

Weighted Average Cost of Capital (WACC)

The calculated WACC is 7.1%. This value is used as the default discount rate.

Value of Future Flows

Assuming a growth rate of 10.0%, the cash flows for the next 5 years are projected.

The present value of each year's flow is adjusted to present value using the discount rate.

Year Future flow (billion) Present value (billion)
2022 2.81 2.62
2023 3.09 2.69
2024 3.4 2.76
2025 3.73 2.84
2026 4.11 2.91
Terminal Value

Assuming a growth rate after the projection years of 2.0%, the terminal value of the company would be 82.0 billion. This corresponds to a present value of 54.3 billion.

Intrinsic Value Per Share

The total present value of the projected cash flows is 13.8 billion. Adding in the terminal value gives a total present value of 68.1 billion.

There are presently 359.0 million outstanding shares, so the intrinsic value per share is 189.55.

Financial Statements

The following data was to determine the past cash flows.

Current Assets 161,761,800,000
Current Cash 2,949,900,000
Current Liabilities 160,398,400,000
Current Debt 749,400,000
Non-Cash Working Capital (NCWC) -837,100,000
Change in NCWC -189,000,000
EBIT 2,891,000,000
Tax Provision 736,700,000
Depreciation and Amortization 385,400,000
Capital Expenditure -127,200,000
Unlevered Free Cash Flow 2,328,886,358
Current Assets 89,283,900,000
Current Cash 1,734,100,000
Current Liabilities 88,197,900,000
Current Debt 0
Non-Cash Working Capital (NCWC) -648,100,000
Change in NCWC -58,800,000
EBIT 2,828,000,000
Tax Provision 615,700,000
Depreciation and Amortization 464,400,000
Capital Expenditure -197,500,000
Unlevered Free Cash Flow 2,396,446,938
Current Assets 39,567,800,000
Current Cash 1,634,600,000
Current Liabilities 38,522,500,000
Current Debt 0
Non-Cash Working Capital (NCWC) -589,300,000
Change in NCWC -330,200,000
EBIT 2,764,600,000
Tax Provision 573,800,000
Depreciation and Amortization 473,300,000
Capital Expenditure -245,600,000
Unlevered Free Cash Flow 2,072,299,479
Current Assets 41,886,700,000
Current Cash 1,447,400,000
Current Liabilities 41,272,600,000
Current Debt 574,200,000
Non-Cash Working Capital (NCWC) -259,100,000
Change in NCWC 501,000,000
EBIT 2,760,400,000
Tax Provision 814,100,000
Depreciation and Amortization 248,700,000
Capital Expenditure -116,700,000
Unlevered Free Cash Flow 2,584,399,481
Current Assets 46,906,500,000
Current Cash 1,993,700,000
Current Liabilities 45,672,900,000
Current Debt 0
Non-Cash Working Capital (NCWC) -760,100,000
Change in NCWC 105,900,000
EBIT 2,441,200,000
Tax Provision -1,537,100,000
Depreciation and Amortization 208,500,000
Capital Expenditure -81,900,000
Unlevered Free Cash Flow 2,673,700,000
Current Assets 40,031,500,000
Current Cash 1,951,900,000
Current Liabilities 38,945,600,000
Current Debt 0
Non-Cash Working Capital (NCWC) -866,000,000
Change in NCWC -180,900,000
EBIT 2,312,900,000
Tax Provision 753,500,000
Depreciation and Amortization 225,300,000
Capital Expenditure -91,800,000
Unlevered Free Cash Flow 1,503,666,571
Current Assets 37,904,500,000
Current Cash 1,765,100,000
Current Liabilities 36,824,500,000
Current Debt 0
Non-Cash Working Capital (NCWC) -685,100,000
Change in NCWC -258,400,000
EBIT 2,088,700,000
Tax Provision 709,800,000
Depreciation and Amortization 228,600,000
Capital Expenditure -114,200,000
Unlevered Free Cash Flow 1,187,055,243
Current Assets 42,545,300,000
Current Cash 1,440,800,000
Current Liabilities 41,531,200,000
Current Debt 0
Non-Cash Working Capital (NCWC) -426,700,000
Change in NCWC 266,900,000
EBIT 1,853,200,000
Tax Provision 644,500,000
Depreciation and Amortization 233,200,000
Capital Expenditure -140,700,000
Unlevered Free Cash Flow 1,538,338,173
Current Assets 24,405,600,000
Current Cash 2,538,100,000
Current Liabilities 23,311,000,000
Current Debt 749,900,000
Non-Cash Working Capital (NCWC) -693,600,000
Change in NCWC -883,000,000
EBIT 1,707,500,000
Tax Provision 622,900,000
Depreciation and Amortization 238,100,000
Capital Expenditure -125,600,000
Unlevered Free Cash Flow 272,664,116
Current Assets 8,717,900,000
Current Cash 1,661,300,000
Current Liabilities 7,616,900,000
Current Debt 749,700,000
Non-Cash Working Capital (NCWC) 189,400,000
Change in NCWC -51,300,000
EBIT 1,722,700,000
Tax Provision 786,700,000
Depreciation and Amortization 253,100,000
Capital Expenditure -141,800,000
Unlevered Free Cash Flow 982,388,148

This analysis is provided for informational purposes only and does not constitute financial or investing advice. For more information on the advantages and limitations of DCF analysis see background. This information is provided on an "as is" basis. No warranty, expressed or implied, is made regarding accuracy, adequacy, completeness, legality, reliability or usefulness of any information. By using this site you agree that under no circumstances shall Valuation Tools LLC be held liable for any loss or damage caused by information obtained from this website including any articles, data, videos, its social media accounts, or any other materials.