| Company name | CME Group Inc |
| Stock ticker | CME |
| Live stock price | [stckqut]CME[/stckqut] |
| P/E compared to competitors | Good |
MANAGEMENT EXECUTION
| Employee productivity | Good |
| Sales growth | Poor |
| EPS growth | Poor |
| P/E growth | Good |
| EBIT growth | Poor |
ANALYSIS
| Confident Investor Rating | Fair |
| Target stock price (TWCA growth scenario) | $79.78 |
| Target stock price (averages with growth) | $76.71 |
| Target stock price (averages with no growth) | $42.63 |
| Target stock price (manual assumptions) | $80.08 |
The following company description is from Google Finance: http://www.google.com/finance?q=cme
CME Group Inc. (CME Group) offer a range of global products across all asset classes based on interest rates, equity indexes, foreign exchange, energy, agricultural commodities, metals, weather and real estate. The Company’s products include both exchange-traded and over-the-counter derivatives. CME Group also provides clearing and settlement services for exchange-traded contracts, as well as for cleared over-the-counter derivatives transactions. In April 2012, it acquired a 100% interest in GreenX Holdings LLC. On July 2, 2012, S&P Capital IQ, a business line of The McGraw-Hill Companies acquired London-based Credit Market Analysis Limited (CMA) from CME Group. In November 2013, CME Group Inc announced the sale of the NYMEX Building located at One North End Avenue to Brookfield Office Properties.
Confident Investor comments: At this time, I think that a Confident Investor can cautiously invest in CME Group Inc as long as the price is correct. Most of the fundamentals of this company are good but there are some concerns.
If you would like to understand how to evaluate companies like I do on this site, please read my book, The Confident Investor. You can review the best companies that I have found (and I probably invest my own money in most of these companies) in my Watch List.
How was this analysis of CME Group Inc calculated?
For owners of my book, “The Confident Investor” I offer the following analysis (you must be logged in to this site as a book owner in order to see the following analysis). If you have registered and cannot see the balance of this article, make sure you are logged in and refresh your browser.
[s2If current_user_can(access_s2member_level1)]
In order to assist you in using the techniques of this book, the values that I used when calculating the Manual pricing above were:
- Stock price at the time of the calculation: $81.61
- Growth: 0.1
- Current EPS (TTM): $2.86
- P/E: 28
- Future EPS Calc: $4.6
- Future Stock Price Calc: $128.96
- Target stock price: $80.08
I hope that this makes you a better investor. [/s2If]