ROC % measures how well a company generates cash flow relative to the capital it has invested in its business. It is also called ROIC %. CME Group's annualized return on capital (ROC %) for the quarter that ended in Mar. 2026 was 2.04%.
As of today (2026-06-24), CME Group's WACC % is 4.14%. CME Group's ROC % is 1.85% (calculated using TTM income statement data).
CME Group earns returns that do not match up to its cost of capital. It will destroy value as it grows.
CME Group (NAS:CME) ROC % Explanation
ROC % measures how well a company generates cash flow relative to the capital it has invested in its business. It is also called ROIC %. The reason book values of debt and equity are used is because the book values are the capital the company received when issuing the debt or receiving the equity investments.
There are four key components to this definition. The first is the use of operating income or EBIT rather than net income in the numerator. The second is the tax adjustment to this operating income or EBIT, computed as a hypothetical tax based on an effective or marginal tax rate. The third is the use of book values for invested capital, rather than market values. The final is the timing difference; the capital invested is from the end of the prior year whereas the operating income or EBIT is the current year's number.
Why is ROC % important?
Because it costs money to raise capital. A firm that generates higher returns on investment than it costs the company to raise the capital needed for that investment is earning excess returns. A firm that expects to continue generating positive excess returns on new investments in the future will see its value increase as growth increases, whereas a firm that earns returns that do not match up to its cost of capital will destroy value as it grows.
As of today, CME Group's WACC % is 4.14%. CME Group's ROC % is 1.85% (calculated using TTM income statement data).
CME Group earns returns that do not match up to its cost of capital. It will destroy value as it grows.
Be Aware
Like ROE % and ROA %, ROC % is calculated with only 12 months of data. Fluctuations in the company's earnings or business cycles can affect the ratio drastically. It is important to look at the ratio from a long term perspective.
CME Group ROC % Related Terms
CME Group ROC % Historical Data
* Premium members only.
The historical data trend for CME Group's ROC % 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.
Note:
The Operating Income data used here is four times the quarterly (Mar. 2026) data.
The tax rate is limited to between 0% and 100%.
* 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.
CME Group (CME) has a ROC % of 2.04% as of Mar. 2026. Return on capital is the ratio of current-period net income to average two-period capital. View historical data on CME Group and its competitors.
Is CME Group's ROC % too high?
CME Group's current ROC % is 2.04%. The Capital Markets industry median ROC % is 1.23. CME Group's value of 2.04% is 66.5% above this industry median. Overall, CME Group has a GF Score™ of 81/100 and is considered Modestly Undervalued, reflecting its overall financial health beyond just this single metric.
How does CME Group's ROC % compare to ICE and MCO?
CME Group's ROC % of 2.04% can be compared against companies in the Capital Markets industry. The industry median ROC % is 1.23. CME Group's value of 2.04% is 66.5% above this benchmark. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good ROC % for a Capital Markets company?
The median ROC % among Capital Markets companies is 1.23, based on 694 companies in the industry. Companies in the top quartile (top 25%) have a ROC % significantly above this median, while those in the bottom quartile fall well below. However, ROC % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. CME Group's current ROC % of 2.04% is 66.5% above the industry median. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high ROC % mean?
A high ROC % can signal that a stock is expensive relative to its fundamentals. Return on capital is the ratio of current-period net income to average two-period capital. View historical data on CME Group and its competitors. For the Capital Markets industry, the median ROC % is 1.23 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. CME Group's current ROC % is 2.04%. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is CME Group stock overvalued right now?
Based on GuruFocus' analysis, CME Group (CME) is currently considered Modestly Undervalued. The stock's GF Value™ is $270.89, compared to a current price of $231.58 — trading 14.5% below its estimated fair value. The current ROC % is 2.04% and 66.5% above the Capital Markets industry median of 1.23. CME Group's overall GF Score™ is 81/100 with 4 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is ROC % calculated?
ROC % is calculated from a company's financial statements. For CME Group (CME), the current ROC % is 2.04% as of Mar. 2026. GuruFocus calculates this using data sourced from SEC filings and annual reports. See the calculation section and 30-year financial data on this page for the full breakdown.
Is CME Group (CME) Overvalued in 2026?
Based on GuruFocus' analysis, CME Group stock appears to be undervalued.
The current stock price of $231.58 is trading 14.5% below its estimated GF Value™ of $270.89.
GuruFocus considers CME Group to be Modestly Undervalued.
Key valuation signals for CME:
ROC %: 2.04%
GF Value™: $270.89 vs. price of $231.58 (14.5% below fair value)
Industry Position: 66.5% above the Capital Markets median
No single metric tells the full story. See the CME stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
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 Indexes, 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.
81GF Score
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