Cboe Global (CBOE) is based in Chicago, IL, and was founded in 1973. Cboe offers trading across a diverse range of products in multiple asset classes and geographies, including options, futures, U.S. and European equities, exchange-traded products (ETPs), global foreign exchange (FX), and multi-asset volatility products based on the VIX Index. Cboe’s trading venues include the largest options exchange in the U.S. and the largest stock exchange by value traded in Europe.
About This Page
Stockmark101.com is a free educational site focused on explaining how stocks and markets work. Company write-ups reflect general market commentary and publicly available information and are used to illustrate business fundamentals and market behavior — not personalized investment advice.
Company Snapshot
| Price | $274 | Category | Conservative | |
| Market Cap | $28.6B | Dividend | $2.88 | 1.06% |
| P/E Ratio | 29.4 | Analyst Avg | 1-Yr Target | $285 |
| Consensus EPS Estimate | 1Q | 2Q | 3Q | 4Q |
| 2026 | 2.73E | 2.71E | 2.80E | 2.87E |
| 2025 | 2.50A | 2.46A | 2.67A | 2.73E |
| 2024 | 2.15A | 2.15A | 2.22A | 2.10A |
*Aggressive/Moderate/Conservative labels describe broad business characteristics for educational purposes only. They are not risk ratings, investment guidance, or recommendations. A = Actual, E = Estimated. Market metrics such as beta, valuation multiples, and analyst estimates are widely referenced in financial research. Their relevance depends on an individual’s goals, time horizon, and risk tolerance. These figures are for informational purposes only and should not be interpreted as predictions or guidance.
Keys for Success
As a financial exchange operator in the complex derivatives market, Cboe lacks the consumer appeal that draws attention to tech stocks. Record options volumes and expansion into prediction markets position Cboe for continued growth as derivatives become central to modern investing.
Strategic moves have expanded Cboe’s moat. The company acquired Bats Global Markets for $3.2 billion in 2017. The deal transformed it into the largest U.S. equities exchange operator while strengthening its options franchise. The company now commands nearly 31% of the total U.S. options market share and maintains exclusive rights to trade SPX and VIX products.
Zero-days-to-expiration options (0DTE) are reshaping the market. They are contracts that expire the same day they’re traded. These ultra-short-dated instruments now represent over 61% of SPX volume, up from 48% a year ago. In the third quarter of 2025, SPX 0DTE average daily volume surged 62% year over year. Cboe pioneered this product innovation, creating an entirely new revenue stream.
Record volumes show no signs of slowing: Q3 2025 marked the fifth consecutive quarter of record options segment revenue. Net revenue rose 14% year over year to $606 million. On Oct. 10, 2025, Cboe set an all-time record with 33.2 million total options contracts traded in a single day.
Cboe Global Markets enjoys a strong liquidity position despite cash outlays to enhance operating leverage. Strong liquidity not only mitigates balance sheet risks but also enables accelerated capital deployment. It has hiked its dividend each year since its IPO. It hiked the dividend by 14% in August 2025 to 72 cents per share, marking the 15th consecutive year of dividend hike.
Keys for Concern
Cboe Global’s elevated expenses remain a major concern. Given increases in marketing and advertising expenses, higher hardware purchases, higher office rent and real estate taxes, and primary data center hosting expenses, expenses are likely to trend higher. Cboe Global has been facing intense competition due to increased market consolidation. As a result, Cboe Global’s market share has declined over the past few years.
Mark Notes
Cboe is an interesting example of a “picks-and-shovels” business model in finance: it earns revenue from trading activity rather than taking directional bets on the market. Cboe plans to launch prediction markets focused on financial and economic contracts. These products target the growing retail appetite for event-based trading.
New to investing? These explanations may help:
• Understanding Earnings Season
• Risk Categories & Diversification
This article is for general informational and educational purposes only. It is not intended as financial advice, investment guidance, or a recommendation to buy or sell any security. The content reflects publicly available information and broad market commentary. Readers should conduct their own research and consult a licensed financial professional before making investment decisions.