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CME Group Inc. (CME) — WACC Analysis

WACC Breakdown

CME Group Inc. (CME) has a weighted average cost of capital (WACC) of 6.7%. The cost of equity is 6.8%, derived from a beta of 0.23 and a risk-free rate of 4.7%. The after-tax cost of debt is 4.0%. The capital structure is 96.8% equity and 3.2% debt.

Interpretation

A WACC of 6.7% suggests that the market views CME Group Inc. as relatively low-risk, with a lower cost of financing.

Investors can compare CME's WACC of 6.7% against industry peers to gauge its relative financing costs. A beta of 0.23 reflects the stock's volatility relative to the broader market.

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VALUATION

CME WACC: 6.70% for CME Group Inc.

Current inputs imply a 6.79% cost of equity and a 5.11% pre-tax cost of debt. Use this discount rate as a starting point for DCF validation.

[01]Current Market Data
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WACC Calculation Process
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Market Data Loaded
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Company Data Fetched
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Beta Calculated (5Y)
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Inputs Auto-Populated
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WACC Calculated
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Step 2: Enter Ticker Symbol
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Step 4: Review Auto-Populated WACC Inputs

Values are automatically populated from real data. You can adjust them manually if needed.

4.30%
1.000
4.23%
5.00%
21.00%
70.00%
Debt: 30.00%Equity: 70.00%

Please enter a valid company ticker to calculate WACC

CME Group Inc. Common Stock (CME) WACC Results
Weighted Average Cost of Capital
6.70%
Cost of Equity
6.79%
Risk-Free Rate4.73%
Beta0.23
Market Risk Premium4.23%
Cost of Debt
4.04%
Pre-Tax Cost of Debt5.11%
Tax Rate21.00%
Tax Shield1.07%
Capital Structure
Equity: 96.78%($102.77B)
Debt: 3.22%($3424.20M)
Equity Component
6.57%
96.78% × 6.79%
Debt Component
0.13%
3.22% × 4.04%

CME Group Inc. (CME) WACC in context

CME Group Inc. (CME) currently screens with an estimated WACC of 6.70%. That blends a 6.79% cost of equity, a 5.11% pre-tax cost of debt, and a 96.78% equity weight into the discount rate you would typically use in a DCF model.

screens as a relatively low discount rate, which usually supports higher DCF values.

What CME WACC implies

A 6.70% discount rate screens as a relatively low discount rate, which usually supports higher DCF values.

How this page calculates CME

This page combines CAPM-based cost of equity with SEC-derived debt and capital structure inputs. The current beta is 0.23 and equity accounts for 96.78% of capital.

What to do next

Validate business quality on the company page, then carry the same discount-rate assumptions into the DCF page to test fair value sensitivity.

Disclaimer: This is not financial advice. Data sourced from SEC EDGAR and Polygon.io. Past performance does not guarantee future results. Always conduct your own research before making investment decisions.