ICE - Embedded Expectations Analysis - 2019 01 03
Intercontinental Exchange, Inc. (ICE:USA) currently trades near recent averages relative to UAFRS-based (Uniform) Earnings, with a 24.7x Uniform P/E. At these levels, the market has bullish expectations for the firm, and management is confident about their Merrill Lynch index acquisition, and the launch of their portfolio rebalancing services and E-vault businessSpecifically, management is confident that their Bank of America Merrill Lynch index acquisition significantly bolstered their ETF expertise, and that a large asset manager is already utilizing their recently launched portfolio rebalancing services. They are also confident in their focus to provide as much choice as possible for customers with their execution venues, and that the market doesn't yet fully appreciate the comprehensive suite of services that they provide for their customers. Additionally, they are confident that their connectivity business is not under threat or pressure from the SEC, and that the combination of their assets has brought institutional initiatives to life. Also, they are confident about the launch of their E-vault services, and its application for small and mid-tier banks
Intercontinental Exchange is a holding company. Through its subsidiaries, the company is a global operator of regulated exchanges, clearing houses and listings venues, and a provider of data services for commodity, financial, fixed income and equity markets. The company operates regulated marketplaces for listing, trading and clearing an array of derivatives contracts and securities across primary asset classes, including metals, equities, bonds and currencies, and also provides mortgage and technology services. In addition, the company provides data services to support the trading, investment, risk management and connectivity needs of customers. The company has two segments: Trading and Clearing and Data and Listings.
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