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CMC Markets Plc, (CMCX) Fair Value & Analysis

Financial Services · GB · Market cap 2.0B GBX

CM CMC Markets Plc, CMCX · LSE
Price£7.49
Fair Value£2.37
Upside-68.4%
Quality70/100
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Weak Growth
Solidly profitable · 19.1% net margin
Low debt · generates free cash flow
1.89% dividend yield
Mixed vs. peers (8/14)
Wide moat 70/100
Evidence: High Range £1.78 – £2.97 Share as image

Fair value as of: Jul 12, 2026

From 13 valuation models · updated 28 days ago

Fair value updated Jul 12, 2026, revised from £2.15 to £2.37 (+10.2%) since Jun 26, 2026. Share price −1.4% over the past month.

A solid business, but screening 68% overvalued on our models.

What matters now

  • A high-quality business (quality 70/100), yet the market already pays well above fair value. Quality at a full price, with little margin of safety.
  • The price sits above even our optimistic bull case (£2.97). The favourable scenario is already priced in.
  • For a financial, book-value and earnings-based methods matter more than a cash-flow DCF, which fits banks and insurers poorly.
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Price vs Fair Value (5 years)

£8.13 £0.8688 Fair Value £2.37 May 2021 Aug 2026

White line = price, green steps = our fair value per fiscal year, dashed = 300-day average. As of Jul 12, 2026.

How to read this chart

60‑month range £0.8688 – £8.13 · fair‑value band £1.78 – £2.97 · the £7.49 price screens above the £2.37 fair value. Green steps = our fair value per fiscal year (point-in-time, no hindsight). Dashed = 300-day average. As of Jul 12, 2026.

Full chart & analysis →

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Analysis

CMC Markets Plc, (CMCX) currently trades at £7.49, while our model-based Fair Value estimate is £2.37, implying the stock looks roughly 68.4% overvalued today. The Quality Score stands at 70/100 (solid quality), in the Financial Services sector. Bear case: priced above our estimate, the market already discounts strong expectations. Bull case: above-average quality can justify a premium, the entry price still matters most (evidence: high).

Over the trailing twelve months, CMC Markets Plc, generated revenue of £347M at a net margin of 18.1%. Revenue grew 5.1% year over year. It earns a return on equity of 15.0%. The balance sheet holds a net cash position of £164M. Fundamentals as of Jul 12, 2026

Our scenario range runs from £1.78 (bear case) to £2.97 (bull case); at £7.49, the current price sits above that range. Bear and bull are the same models run on conservative and optimistic assumptions (margins, growth, valuation multiples), so a plausible valuation range, not a price target. For context, the median of 10 Financial Services peers we cover trades at 11% fair-value upside, at -68%, CMCX screens richer than that median.

Fair Value models

Each model estimates fair value its own way; the Fair Value above is the evidence-weighted blend. Evidence (0–100) measures how completely this model’s inputs are available: well-fed models carry more weight in the blend. The spread across models is intentional, each one stresses a different value driver; dividend models, for instance, come out structurally low when payout is small.

Model BearBaseBull Evidence
Highest evidence
Growth DCF £3.07 £4.50 £6.79 80
Residual Income £1.75 £2.23 £5.40 76
Rev-Margin DCF £3.11 £4.68 £6.69 74
All 13 models by family
DCF Models
Owner Earnings £4.87 £7.80 £12.68 31
5Y P/E Exit £3.36 £5.22 £7.35 38
10Y P/E Exit £3.25 £4.88 £7.18 35
Earnings-Based
Graham-Dodd £1.87 £8.63 £11.84 54
Lynch FV £2.27 £3.24 £4.21 50
Dividend Discount
Gordon GGM £1.21 £2.41 £3.65 70
DDM Multi-Stage £1.21 £2.09 £2.55 61
Multiples
P/E Multiple £2.69 £3.58 £4.48 63
P/B Multiple £1.78 £2.37 £2.97 55
Asset-Based
NCAV (Graham) £0.8500 £1.14 £1.69 50
Growth DCF
Growth DCF £3.07 £4.50 £6.79 80
Rev-Margin DCF £3.11 £4.68 £6.69 74
Economic Profit
Residual Income £1.75 £2.23 £5.40 76

Widest divergence: DCF Models (£5.22) versus Asset-Based (£1.14). Highest evidence: Growth DCF (80).

Key figures & financial health

Revenue (TTM) 390M GBX
Revenue growth (YoY) +26.4%
Net margin 19.1%
Return on equity 16.9%
Free cash flow 45.7M GBX FY2026
P/E ratio 27.7
More key figures
Operating margin 24.4%
EPS (TTM) £0.2700
Dividend yield 1.9%
EPS growth (YoY) +45.0%
Net cash 164M GBX FY2026

Figures from reported company fundamentals · as of Jul 12, 2026. TTM = trailing twelve months.

Quality Score breakdown

Overall quality 70/100

Of which business quality 67 · Market factors (momentum, volatility) 85

Profitability 55
Margins and returns on capital today
Quality Growth 57
Are margins and returns improving?
Cashflow 53
Earnings quality: real cash, not paper profit
Fin. Strength 87
Balance sheet, leverage, solvency risk
Investment 56
Disciplined investing over empire-building
Low Volatility 55
Calm price path (market factor)
Momentum 100
Price trend over the last 3–12 months (market factor)
52W Momentum 94
Distance to the 52-week high (market factor)
Net Issuance 99
Buybacks instead of dilution

Non-valuation factor families (profitability, growth, cashflow, financial strength, momentum …), each academically grounded. Valuation itself sits in the Fair Value and is deliberately excluded here to avoid double-counting.

About the company

CMC Markets Plc, together with its subsidiaries, provides a platform for investing, trading, and brokerage in the United Kingdom, Australia, and internationally. It operates through two segments, Trading and Investing.

Full company description

CMC Markets Plc, together with its subsidiaries, provides a platform for investing, trading, and brokerage in the United Kingdom, Australia, and internationally. It operates through two segments, Trading and Investing. The Trading segment is involved in online trading that enables clients to trade a range of financial instruments, including contracts for difference and financial spread betting across various assets, such as shares, indices, foreign currencies, commodities, and treasuries for short-term investment and hedging purposes. The Investing segment provides online stockbroking services. It serves retail, professional, stockbroking, and institutional clients. The company was founded in 1989 and is headquartered in London, the United Kingdom.

Company description, as reported by the company or data provider.

Revenue & earnings trend

FY2022 – FY2026 · reported fiscal years

CMC Markets Plc, reported revenue of £411M in FY2026 versus £324M in FY2022, a compound +6.1%/yr. Reported net income was £74.4M in FY2026, compounding +1.0%/yr from FY2022.

Growth Quality 40/100
Revenue growth is weak, negative or inconsistent.
Latest Revenue (FY 2026)
£411M
Latest YoY
+14.1%
Avg. growth/yr (3Y)
+8.5%
Avg. growth/yr (5Y)
−2.0%
Avg. growth/yr (13Y)
+9.4%
Revenue +6.1%/yr
FY22 £324M
FY23 £322M
FY24 £360M
FY25 £360M
FY26 £411M
Net income +1.0%/yr
FY22 £71.5M
FY23 £41.4M
FY24 £46.9M
FY25 £62.2M
FY26 £74.4M

CMCX screens 68% overvalued. Compare with Huatai Securities Co →

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Cite: Fair Value Calculator (2026). "CMC Markets Plc, Fair Value". https://www.fairvalue-calculator.com/stock/CMCX

Peer Group

Capital Markets · 425 stocks

How this stock ranks against its industry: the green marker is this stock, the band is the typical 25–75% peer range, and the tick is the median.

Quality Score 69 · Top 25%
Fair Value upside −68% · Bottom 25%
Return on equity (TTM) 17% · Top 25%
Return on assets 8% · Top 25%
Net margin (TTM) 19% · Above median
Operating margin (TTM) 24% · Above median
Revenue growth 26% · Above median
Dividend yield (TTM) 1.9% · Above median

Valuation Multiples vs Capital Markets median · lower = cheaper

P/E (TTM) 27.7× · Pricier than 75% of peers
P/B 5.96× · Pricier than 75% of peers
P/S (TTM) 6.99× · Pricier than 75% of peers
P/FCF 59.6× · Pricier than 75% of peers
EV/EBITDA 19.5× · Pricier than 75% of peers

Snowflake

Five quick dimensions, each 0 to 100: VALUE (fair-value potential), FUTURE (revenue growth), PAST (return on equity), HEALTH (low debt), DIVIDEND (yield). Green = this stock, grey = typical sector peer.

VALUE 0 · sector 9
FUTURE 100 · sector 96
PAST 67 · sector 30
HEALTH 100 · sector 93
DIVIDEND 38 · sector 36

VALUE 0: the price sits above our fair-value range.

Insider activity: 40/100

Values & ESG

Does this company touch areas you may want to avoid? The classification is inferred from sector and industry.

None of the checked exposures detected

ESG scores are not available for this stock yet. Values and ESG data are contextual and can differ between providers.

Similar stocks

10 more Capital Markets stocks, each showing price versus our Fair Value estimate (as of Jul 12, 2026).

Stock Price Fair Value vs Fair Value
Huatai Securities Co HTSC $0.2700 $0.0400 -85%
Mirae Asset Securities Co 006800 38,750 KRW 31,645 KRW -18%
Meritz Financial Group 138040 117,000 KRW 87,706 KRW -25%
Korea Investment Holdings 071050 239,000 KRW 318,825 KRW +33%
NH Investment & Securities Co 005940 31,000 KRW 37,133 KRW +20%
Samsung Securities Co 016360 107,700 KRW 126,487 KRW +17%
Motilal Oswal Financial Services Limited MOTILALOFS ₹967.00 ₹299.65 -69%
Kiwoom Securities Co 039490 322,000 KRW 358,091 KRW +11%
SSI Securities Corporation SSI 24,250 VND 28,021 VND +16%
Bolsas y Mercados Argentinos S.A BYMA 313.75 ARS 120.22 ARS -62%

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Frequently asked questions

Is CMC Markets Plc, (CMCX) overvalued or undervalued?
As of Jul 12, 2026, our model estimates a fair value of £2.37 versus a price of £7.49, about −68% (overvalued).
What is the fair value of CMCX?
Our model-based fair value for CMC Markets Plc, is £2.37 (as of Jul 12, 2026), built from audited fundamentals. The current price is £7.49.
What is the quality score of CMCX?
CMC Markets Plc, has a Quality Score of 70/100. It measures business quality (profitability, growth, cash flow, balance-sheet strength, investment discipline, share issuance). Market factors such as price momentum and volatility do not enter the number; they are shown separately in the detail view.
What is the revenue of CMC Markets Plc, (CMCX)?
CMC Markets Plc, reported trailing-twelve-month revenue of about £347M (latest available figure, as of Jul 12, 2026).
What is the net profit margin of CMCX?
The net profit margin of CMC Markets Plc, is about 18.1%, meaning it keeps roughly 18.1% of revenue as net income. Based on the latest reported figures.
Does CMC Markets Plc, pay a dividend?
CMC Markets Plc, currently shows a dividend yield of about 3.72% relative to its recent price (as of Jul 12, 2026).

How we calculate Fair Value

Each company is valued through a stack of independent intrinsic-value models (DCF variants, residual-income, multiples and more), blended into one family-balanced consensus and weighted by how much trustworthy data backs it. A separate quality layer scores the fundamentals. Every input is real reported data, nothing guessed.

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