Is CME Group, Inc. overvalued or undervalued?

As of 4 June 2025, the valuation grade for CME Group, Inc. has moved from expensive to fair, indicating a more favorable assessment of its market position. The company is currently fairly valued. Key ratios include a P/E ratio of 27, an EV to EBITDA of 22.04, and a PEG ratio of 2.06, which suggest that while the company is not undervalued, it is also not excessively priced compared to its earnings growth potential.
In comparison to its peers, CME Group's P/E ratio of 26.78 is lower than that of The Goldman Sachs Group, Inc. at 36.62, which is considered fair, but higher than Morgan Stanley's 16.79, which is deemed expensive. Additionally, CME's EV to EBITDA ratio is more favorable than some peers, such as Intercontinental Exchange, Inc. at 40.67, indicating a competitive valuation. Notably, CME Group has outperformed the S&P 500 with a 1-year return of 40.20% compared to the index's 10.26%, reinforcing its strong market position.