MarketAxess Holdings Inc. (MKTX)
Valuation Overview•Is MarketAxess Holdings Inc. Overvalued or Undervalued?
Trading at a discount compared to peers, but the underlying intrinsic cash flows struggle to support the current price.
High-quality fundamentals with a strong composite quality score of 81/100, backed by robust profitability and solvency.
Analysts remain cautious, with consensus price targets indicating limited room for upside expansion.
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Verdict: High-quality compounder, with growth as the only relative weakness.
Wall Street is cautious, forecasting potential downside. This outlook is strongly supported by highly attractive capital returns, driven by a balanced mix of reliable dividends and share buybacks.
MKTX exhibits elite business quality, driven by exceptional capital efficiency and highly lucrative margins. This is backed by a fortress balance sheet, holding significant net cash ($235M) and minimal debt risk.
The company demonstrates solid revenue growth (5.7% 3Y CAGR) paired with stable bottom-line earnings. This growth is supported by elite operational efficiency, sustaining an impressive 40.5% operating margin.
| Financial Metric | Trend (12Q) | Latest Qtr | 1Y Growth | 3Y CAGR | 5Y CAGR | 10Y CAGR |
|---|---|---|---|---|---|---|
| Revenue | $216.6M | +3.8% | +5.7% | +4.3% | +10.9% | |
| EBITDA | $109.2M | — | +3.3% | — | — | |
| Net Income | $68.1M | -10.0% | -0.5% | — | +9.9% | |
| EPS (Diluted) | $1.93 | -8.5% | +0.1% | -3.2% | +10.1% | |
| Free Cash Flow | $14.8M | +13.8% | +16.4% | +0.8% | — |
| Metric | TTM | 3Y Avg | 5Y Avg | 10Y Avg |
|---|---|---|---|---|
| Gross Margin | 67.5% | 69.9% | 71.5% | 77.1% |
| Operating Margin | 40.5% | 41.7% | 43.7% | 47.3% |
| Net Margin | 35.2% | 32.3% | 33.7% | 36.3% |
| FCF Margin | 18.4% | 40.6% | 37.5% | 37.8% |
| Quarter | EPS Est. | EPS Act. | Surprise | EPS | Rev |
|---|---|---|---|---|---|
| Q3'26Latest | $1.85 | $1.95 | +5.4% | ||
| Q2'26 | $2.15 | $2.25 | +4.7% | ||
| Q1'26 | $1.65 | $1.68 | +1.8% | ||
| Q4'25 | $1.70 | $1.84 | +8.2% | ||
| Q3'25 | $1.94 | $2.00 | +3.1% | ||
| Q2'25 | $1.81 | $1.87 | +3.3% | ||
| Q1'25 | $1.70 | $1.73 | +1.8% | ||
| Q4'24 | $1.85 | $1.90 | +2.7% |
Total return is -6.9% (1Y), lagging the benchmark by -22.6%
| Period | Total Return | vs S&P 500 (Alpha) | Dividend Contribution |
|---|---|---|---|
| YTD | -7.0% | -19.4% | — |
| 1Y | -6.9% | -22.6% | +1.7% |
| 3YCAGR | -6.5% | -28.3% | +4.3% |
| 5YCAGR | -15.9% | -27.6% | +3.5% |
| 10YCAGR | +1.0% | -12.7% | — |
The S&P 500 is at 31.3x trailing P/E — Expensive relative to historical averages.
Quick answers to common questions about MarketAxess Holdings Inc. (MKTX) valuation, health, and returns.
MarketAxess Holdings Inc. is estimated to be overvalued under our discounted cash flow framework. relative multiples indicate the stock is Slightly cheap versus peers compared to industry peers. overvalued (implying -25.7% downside from DCF intrinsic value of $121.44)
MarketAxess Holdings Inc. has multiple valuation anchors: DCF Intrinsic Value: $121.44 | Peer Relative Fair Value: $183.20 | Wall Street Analyst Target: $142.50 (implying -13.0% upside). A convergence of these signals offers higher conviction.
MarketAxess Holdings Inc. displays excellent financial health with a composite quality score of 81/100, supported by a Piotroski F-Score of 5/9, Return on Invested Capital (ROIC) of 18.1%.
MarketAxess Holdings Inc. pays a 1.9% dividend yield, covered by a 47% payout ratio with 17 years of growth, supplemented by a 7.3% buyback yield.
MarketAxess Holdings Inc.'s current growth trajectory is Stable. The company achieved +3.8% 1Y revenue growth and -8.5% 1Y EPS growth, compared to its 3Y revenue CAGR of +5.7%.
Wall Street consensus is Hold based on 24 analysts, beating EPS expectations in 92% of recent quarters with a 11-quarter streak. The consensus price target represents a -13.0% change from current levels.
Investment risks for MarketAxess Holdings Inc. include: -43.7% 1-year max drawdown. Volatility risk is characterized by a beta of 0.10x.
No. These computations are purely quantitative model outputs for informational purposes. They do not account for qualitative management shifts or macro events. Always consult a licensed RIA before buying or selling shares.
Disclaimer: This page is for informational purposes only and does not constitute financial advice. All valuation models, scores, and target estimates are automated computations under stated assumptions and should not be relied upon as the sole basis for any investment decision.