Is Intercontinental Exchange, Inc. overvalued or undervalued?

As of 21 April 2025, the valuation grade for Intercontinental Exchange, Inc. has moved from very expensive to expensive, indicating a slight improvement in its perceived value. The company is currently considered overvalued based on its key financial ratios. The P/E ratio stands at 40, significantly higher than the industry average, while the EV to EBITDA ratio is 24.55, also above typical levels. Additionally, the PEG ratio of 7.88 suggests that the stock may not be justified by its growth prospects.
In comparison to peers, Morgan Stanley has a P/E of 16.79, and The Goldman Sachs Group, Inc. has a P/E of 36.62, both indicating that Intercontinental Exchange, Inc. is trading at a premium. The Charles Schwab Corp. is rated attractive with a P/E of 27.45, further highlighting the relative overvaluation of Intercontinental Exchange, Inc. Despite a strong year-to-date return of 20.62%, which outperformed the S&P 500's 2.44%, the current valuation metrics suggest that the stock is not a compelling buy at this price point.