Skip to Content
Morningstar
Get 14 Days Free

Intercontinental Exchange Inc ICE

Morningstar Rating
Rating as of

Morningstar’s Analysis

Valuation
Currency in USD
Is it the right time to buy or sell?
Find out with Morningstar Premium
Is it the right time to buy or sell?
Find out with Morningstar Premium

1-Star Price

PREMIUM

5-Star Price

PREMIUM

Economic Moat

PREMIUM

Capital Allocation

PREMIUM

Increasing Our Fair Value Estimate for Intercontinental Exchange to $120

Michael Wong, CFA, CPA Sector Director

Analyst Note

| Michael Wong, CFA, CPA |

We are increasing our fair value estimate for wide-moat Intercontinental Exchange to $120 per share from $99. Approximately $2 of the increase is from earnings accrued since our previous valuation update, while $19 comes from increasing our medium-term revenue growth rate. Our new fair value estimate is equivalent to around 26 times 2022 earnings, with an enterprise value/EBITDA ratio of 19 times.

Read Full Analysis

Company Profile

Business Description

Intercontinental Exchange is a vertically integrated operator of financial exchanges and provides ancillary data products. Though the company is probably best known for its ownership of the New York Stock Exchange, which it acquired in 2013, ICE is the operator of a large derivatives exchange as well. The company's largest commodity futures product is the ICE Brent crude futures contract. In addition to the exchanges business that is about 55% of net revenue, Intercontinental Exchange also has mortgage technology (15% of net revenue) and fixed income & data services businesses (30% of net revenue).

Contact
5660 New Northside Drive, 3rd Floor
Atlanta, GA, 30328
T +1 770 857-4700
Sector Financial Services
Industry Financial Data & Stock Exchanges
Most Recent Earnings Dec 31, 2020
Fiscal Year End Dec 31, 2021
Stock Type Cyclical
Employees 8,890

Related

Fund Spy
Digging Into ARK Innovation's Portfolio
We reveal how the ultra-popular fund's underlying holdings stack up on 11 measures of equity-related risk.
Amy C. Arnott
Premium Article
These Wide-Moat Stocks May Be Worth Paying More For
Several cases can be made for buying what seem to be fairly valued high-quality stocks.
Susan Dziubinski
Premium Article
Wide Moat Stocks With More
These companies all have multiple moat sources. Does that matter?
Susan Dziubinski
Premium Article
These Wide-Moat Stocks Have an Added Advantage
These 27 companies have network effect as a moat source--and that's been a plus.
Susan Dziubinski
Stock Strategist Industry Reports
How Blockchain Affects Our Coverage
We believe companies with moats from switching costs and intangible assets are less vulnerable.
Jim Sinegal
Stock Strategist Industry Reports
How Is Blockchain Used?
Financial transactions are the most obvious application, but there are other opportunities as well.
Jim Sinegal
Market Update
What a Thriving Global Economy Means for Stocks
For the first time since the recession, all OECD-tracked countries are growing at the same time. And that presents opportunities.
Bryan Borzykowski
Stock Analyst Update
Some Long-Term Positives for Financials Amid Election
Volatility will be a negative for some traditional asset managers, while investment banks and exchanges should benefit from higher trading levels.
Greggory Warren
US Videos
More Red Flags for Valeant; Berkshire Battles Headwinds
Shares the beleaguered pharma firm may look cheap, but investors should remain very cautious. Meanwhile, Berkshire pulls off decent results under less-than-ideal circumstances.
Jason Stipp
US Videos
2 Ideas From the Wide Moat Focus Index
StockInvestor editor Matt Coffina reviews the recent additions and subtractions to Morningstar's Wide Moat Focus Index as well as his current favorites among index constituents.
Matthew Coffina
US Videos
Build a Moat in Your Portfolio
Moats are key to sound equity-investing strategies, and Morningstar's Matt Coffina details what to look for and how to leverage a stock's competitive advantages to your benefit.
Matthew Coffina
The Short Answer
What's a Benchmark? Or Buyback? Or Moat?
Readers said they were unclear on what certain financial jargon means, so we're providing a few more definitions.
Adam Zoll
Stock Strategist
The Changing Face of Nasdaq OMX
Acquisitions are helping the exchange operator tap other revenue sources.
Gaston F. Ceron
Quarter-End Insights
Our Outlook for Financial-Services Stocks
Increasingly bullish sentiment means investors must pick their spots carefully.
Jim Sinegal
Quarter-End Insights
Our Outlook for Financial-Services Stocks
Volatility could return to the financial sector in the second half of 2013.
Jim Sinegal
US Videos
What Does the Merger With NYSE Mean for ICE's Moat?
Morningstar's Gaston Ceron addresses the short- and long-term prospects for and opportunities in ICE's takeover of NYSE Euronext.
Jeremy Glaser
Quarter-End Insights
Our Outlook for Financial-Services Stocks
Investors should continue to pick their spots carefully in the financial-services space.
Jim Sinegal
Stock Strategist Industry Reports
The Stock Exchanges and Possible Industry Game Changers
The potential upside might outweigh the downside risk.
Michael Wong
Stock Strategist Industry Reports
Banks and the Avalanche of Deflation
Let's examine how we arrived at asset deflation, the impacts of deleveraging, future banking trends, and the impact of massive stimulus.
Matthew Warren