GURUFOCUS.COM » STOCK LIST » Financial Services » Capital Markets » CME Group Inc (NAS:CME) » Definitions » PE Ratio (TTM)

CME (CME Group) PE Ratio (TTM) : 24.94 (As of Dec. 15, 2024)


View and export this data going back to 2002. Start your Free Trial

What is CME Group PE Ratio (TTM)?

The PE Ratio (TTM), or Price-to-Earnings ratio, or P/E Ratio, is a financial ratio used to compare a company's market price to its Earnings per Share (Diluted). As of today (2024-12-15), CME Group's share price is $237.19. CME Group's Earnings per Share (Diluted) for the trailing twelve months (TTM) ended in Sep. 2024 was $9.51. Therefore, CME Group's PE Ratio (TTM) for today is 24.94.


The historical rank and industry rank for CME Group's PE Ratio (TTM) or its related term are showing as below:

CME' s PE Ratio (TTM) Range Over the Past 10 Years
Min: 12.38   Med: 25.86   Max: 43.57
Current: 24.94


During the past 13 years, the highest PE Ratio (TTM) of CME Group was 43.57. The lowest was 12.38. And the median was 25.86.


CME's PE Ratio (TTM) is ranked worse than
61.14% of 579 companies
in the Capital Markets industry
Industry Median: 18.99 vs CME: 24.94

CME Group's Earnings per Share (Diluted) for the three months ended in Sep. 2024 was $2.50. Its Earnings per Share (Diluted) for the trailing twelve months (TTM) ended in Sep. 2024 was $9.51.

As of today (2024-12-15), CME Group's share price is $237.19. CME Group's EPS without NRI for the trailing twelve months (TTM) ended in Sep. 2024 was $10.11. Therefore, CME Group's PE Ratio without NRI for today is 23.46.

During the past 13 years, CME Group's highest PE Ratio without NRI was 63.57. The lowest was 19.98. And the median was 32.83.

CME Group's EPS without NRI for the three months ended in Sep. 2024 was $2.68. Its EPS without NRI for the trailing twelve months (TTM) ended in Sep. 2024 was $10.11.

During the past 12 months, CME Group's average EPS without NRI Growth Rate was 68.10% per year. During the past 3 years, the average EPS without NRI Growth Rate was 19.50% per year. During the past 5 years, the average EPS without NRI Growth Rate was 7.90% per year. During the past 10 years, the average EPS without NRI Growth Rate was 6.10% per year.

During the past 13 years, CME Group's highest 3-Year average EPS without NRI Growth Rate was 49.70% per year. The lowest was -20.80% per year. And the median was 12.95% per year.

CME Group's EPS (Basic) for the three months ended in Sep. 2024 was $2.51. Its EPS (Basic) for the trailing twelve months (TTM) ended in Sep. 2024 was $9.53.


CME Group PE Ratio (TTM) Historical Data

The historical data trend for CME Group's PE Ratio (TTM) can be seen below:

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

* Premium members only.

CME Group PE Ratio (TTM) Chart

CME Group Annual Data
Trend Dec14 Dec15 Dec16 Dec17 Dec18 Dec19 Dec20 Dec21 Dec22 Dec23
PE Ratio (TTM)
Get a 7-Day Free Trial Premium Member Only Premium Member Only 33.96 31.01 31.34 22.72 23.77

CME Group Quarterly Data
Dec19 Mar20 Jun20 Sep20 Dec20 Mar21 Jun21 Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23 Sep23 Dec23 Mar24 Jun24 Sep24
PE Ratio (TTM) Get a 7-Day Free Trial Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 23.89 23.77 24.49 21.68 23.20

Competitive Comparison of CME Group's PE Ratio (TTM)

For the Financial Data & Stock Exchanges subindustry, CME Group's PE Ratio (TTM), along with its competitors' market caps and PE Ratio (TTM) data, can be viewed below:

* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.


CME Group's PE Ratio (TTM) Distribution in the Capital Markets Industry

For the Capital Markets industry and Financial Services sector, CME Group's PE Ratio (TTM) distribution charts can be found below:

* The bar in red indicates where CME Group's PE Ratio (TTM) falls into.



CME Group PE Ratio (TTM) Calculation

The PE Ratio (TTM), or Price-to-Earnings ratio, or P/E Ratio, is a financial ratio used to compare a company's market price to its Earnings per Share (Diluted). It is the most widely used ratio in the valuation of stocks.

CME Group's PE Ratio (TTM) for today is calculated as

PE Ratio (TTM)=Share Price/Earnings per Share (Diluted) (TTM)
=237.19/9.510
=24.94

CME Group's Share Price of today is $237.19.
CME Group's Earnings per Share (Diluted) for the trailing twelve months (TTM) ended in Sep. 2024 adds up the quarterly data reported by the company within the most recent 12 months, which was $9.51.

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

It can also be calculated from the numbers for the whole company:

PE Ratio (TTM)=Market Cap /Net Income

There are at least three kinds of PE Ratio (TTM)s used by different investors. They are Trailing Twelve Month PE Ratio (TTM) or PE Ratio (TTM) (TTM), Forward PE Ratio, or PE Ratio without NRI. A new PE Ratio (TTM) based on inflation-adjusted normalized PE Ratio (TTM) is called Shiller PE Ratio, after Yale professor Robert Shiller.

In the calculation of PE Ratio (TTM), the earnings per share used are the earnings per share over the past 12 months. For Forward PE Ratio, the earnings are the expected earnings for the next twelve months. In the case of PE Ratio without NRI, the reported earnings less the non-recurring items are used.

For Shiller PE Ratio, the earnings of the past 10 years are inflation-adjusted and averaged. Since it looks at the average over the last 10 years, Shiller PE Ratio is also called PE10.


CME Group  (NAS:CME) PE Ratio (TTM) Explanation

The PE Ratio (TTM) can be viewed as the number of years it takes for the company to earn back the price you pay for the stock. For example, if a company earns $2 a share per year, and the stock is traded at $30, the PE Ratio (TTM) is 15. Therefore it takes 15 years for the company to earn back the $30 you paid for its stock, assuming the earnings stays constant over the next 15 years.

In real business, earnings never stay constant. If a company can grow its earnings, it takes fewer years for the company to earn back the price you pay for the stock. If a company's earnings decline it takes more years. As a shareholder, you want the company to earn back the price you pay as soon as possible. Therefore, lower P/E stocks are more attractive than higher P/E stocks so long as the PE Ratio (TTM) is positive. Also for stocks with the same PE Ratio (TTM), the one with faster growth business is more attractive.

If a company loses money, the PE Ratio (TTM) becomes meaningless.

To compare stocks with different growth rates, Peter Lynch invented a ratio called PEG Ratio. PEG Ratio is defined as the PE Ratio (TTM) divided by the growth ratio. He thinks a company with a PE Ratio (TTM) equal to its growth rate is fairly valued. Still he said he would rather buy a company growing 20% a year with a PE Ratio (TTM) of 20, instead of a company growing 10% a year with a PE Ratio (TTM) of 10.

Because the PE Ratio (TTM) measures how long it takes to earn back the price you pay, the PE Ratio (TTM) can be applied to the stocks across different industries. That is why it is the one of the most important and widely used indicators for the valuation of stocks.

Similar to the PE Ratio without NRI or PS Ratio or Price-to-Operating-Cash-Flow or Price-to-Free-Cash-Flow , the PE Ratio (TTM) measures the valuation based on the earning power of the company. This is where it is different from the PB Ratio , which measures the valuation based on the company's balance sheet.


Be Aware

Investors need to be aware that the PE Ratio (TTM) can be misleading a lot of times, especially when the underlying business is cyclical and unpredictable. As Peter Lynch pointed out, cyclical businesses have higher profit margins at the peaks of the business cycles. Their earnings are high and PE Ratio (TTM)s are artificially low. It is usually a bad idea to buy a cyclical business when the PE Ratio (TTM) is low. A better ratio to identify the time to buy a cyclical businesses is the PS Ratio .

PE Ratio (TTM) can also be affected by non-recurring-items such as the sale of part of businesses. This may increase for the current year or quarter dramatically. But it cannot be repeated over and over. Therefore PE Ratio without NRI is a more accurate indication of valuation than PE Ratio (TTM).


CME Group PE Ratio (TTM) Related Terms

Thank you for viewing the detailed overview of CME Group's PE Ratio (TTM) provided by GuruFocus.com. Please click on the following links to see related term pages.


CME Group Business Description

Address
20 South Wacker Drive, Chicago, IL, USA, 60606
Based in Chicago, CME Group operates exchanges giving investors, suppliers, and businesses the ability to trade futures and derivatives based on interest rates, equity indexes, foreign currencies, energy, metals, and commodities. The Chicago Mercantile Exchange was founded in 1898 and in 2002 completed its IPO. Since then, CME Group has consolidated parts of the industry by merging with crosstown rival CBOT Holdings in 2007 before acquiring Nymex Holdings in 2008 and NEX in 2018. In addition, the company has a 27% stake in S&P Dow Jones Indices, making the Chicago Mercantile Exchange the exclusive venue to trade and clear S&P futures contracts. Through CME's acquisition of NEX, it also expanded into cash foreign exchange, fixed-income trading, and collateral optimization.
Executives
Elizabeth A Cook director 20 S. WACKER DRIVE, CHICAGO IL 60606
Martin J Gepsman director 20 S. WACKER DR, CHICAGO IL 60606
Timothy S. Bitsberger director 20 S. WACKER DRIVE, CHICAGO IL 60606
Sunil Cutinho officer: President, CME Clearing 20 S. WACKER DR., CHICAGO IL 60606
Timothy Francis Mccourt officer: Sr MD Global Head Equity & FX 20 S WACKER DRIVE, CHICAGO IL 60606
William R Shepard director 20 S. WACKER DR, CHICAGO IL 60606
Lynne Fitzpatrick officer: Sr MD Deputy CFO 20 S WACKER DRIVE, CHICAGO IL 60606
Bryan T Durkin officer: MD & COO 20 S. WACKER DRIVE, CHICAGO IL 60606
Charles P Carey director 20 S. WACKER DRIVE, CHICAGO IL 60606
Daniel R Glickman director 20 S. WACKER DR, CHICAGO IL 60606
Terry L Savage director 20 S. WACKER DRIVE, CHICAGO IL 60606
Hilda Harris Piell officer: MD, Organizational Development 20 S. WACKER DRIVE, CHICAGO IL 60606
Terrence A Duffy director 20 S. WACKER DR, CHICAGO IL 60606
Derek Sammann officer: Managing Dir Financial Product 20 S. WACKER DRIVE, CHICAGO IL 60606
Dennis Suskind director ONE NORTH END AVENUE, WORLD FINANCIAL CENTER, NEW YORK NY 10282