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Is this Large Market Cap Stock target price reasonable for CME Group Inc. (NASDAQ:CME)?

The company in question is, CME Group Inc. (NASDAQ:CME) currently with a stock price of 106.16 (0.33% today). The market cap for CME Group Inc. is 35684.42, and is in the sector Financial, and Investment Brokerage – National industry. The target price for CME Group Inc. is 105. Currently CME Group Inc. is trading with a P/E of 26.73, and a forward P/E of 22.18. Average volume for CME Group Inc. is 1354.3 and so far today it is 479115.

Performance in the last year for CME Group Inc. has been 13.65%. For EPS growth, CME Group Inc. has seen a growth of 10.00%, and is looking to grow in the next year to 7.21%. More long term stats show that EPS growth has been 5.20% over the last five years and could be 9.84% for the next five years. CME Group Inc. has seen sales growth quarter over quarter at 10.50%, with EPS growth quarter over quarter at 20.50%. The 20-day simple moving average is 6.69%, with the 200-day simple moving average coming to 13.46%.

Since the IPO date for CME Group Inc. on the 12/6/2002, CME Group Inc. has seen performance year to date to be 18.28%. With CME Group Inc. trading at 106.16, the dividend yield is 2.27%, and the EPS is 3.96.

So could CME Group Inc., be undervalued? Well as said before P/E is 26.73. The PEG is 2.72, P/S is 10.18 and the P/B is at 1.69. The P/cash is 28.76, with P/free cash flow at *TBA.

CME Group Inc. ability to deal with debt shows that the current ratio is 1, and the quick ratio is 1. This is with long term debt/equity at 0.11, and total debt/equity at 0.11.

In terms of margins, CME Group Inc. has a gross margin of *TBA, an operating margin of 60.60% and a profit margin of 38.20%.Payout ratio for CME Group Inc. is 128.30%. Return on assets come to 1.90% with return on investment coming to 5.60%.

Insider ownership for CME Group Inc., is at 0.40% and institutional ownership comes to 80.80%. Outstanding shares are at 337.25. While shares float is 323.75. The float short is currently 1.29%, and short ratio is 3.08.

Disclaimer: Remember there is a risk to your investment, this is not a recommendation, nor personal advice, never invest more than you are able too loose.

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Stephen Butters

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