ICE - Embedded Expectations Analysis - 2018 01 22
ï€ Intercontinental Exchange, Inc. (ICE:USA) currently trades near recent averages relative to UAFRS-based (Uniform) Earnings, with a 25.2x Uniform P/E, implying bullish expectations for the firm. However, management has concerns about growth and international expansionï€ Management is confident that market dynamics leading to private-label SIPs with price regulation will not represent an opportunity to narrow the gap between the firm and the NASDAQ. Additionally, they may have concerns about the macroeconomic outlook for crude, and may be downplaying concerns about realtime equity data product growth. Moreover, they may be exaggerating the extent of their investments into Asia, and may have concerns about the sustainability of 5% organic growth. Finally, they appear to lack confidence in their ability to bring ICE's full suite of trading, clearing, and data offerings to the Asia Pacific through their venture with Go West acting
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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