Is CME Group, Inc. overvalued or undervalued?

As of 30 June 2025, the valuation grade for CME Group, Inc. has moved from attractive to fair, indicating a shift in its perceived value. Based on the current metrics, the company appears to be fairly valued. Key ratios include a P/E ratio of 27, an EV to EBITDA of 22.04, and a Price to Book Value of 3.66. In comparison to peers, CME Group's P/E ratio is higher than The Charles Schwab Corp. at 25.67 and lower than The Goldman Sachs Group, Inc. at 41.63, suggesting a competitive position within the industry.
In terms of recent performance, CME Group's stock has returned 20.48% over the past year, slightly outperforming the S&P 500's return of 17.14%. However, over longer periods, such as the 3-year and 5-year returns, CME Group has lagged significantly behind the S&P 500, which returned 70.41% and 96.61%, respectively. This discrepancy may indicate that while the company is currently fairly valued, it faces challenges in maintaining competitive growth relative to broader market indices.