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Marc Dufresne/iStock Unreleased via Getty Images A Well Diversified Exchange and Data Provider; Multiple Likely to Expand as Mortgage Market Improves Intercontinental Exchange ( NYSE: ICE ) is an extremely well diversified global exchange group with ~50% of revenue coming from Exchanges, ~25% of revenue derived from Fixed Income & Data Services and ~25% of revenue derived from Mortgage Technology. Following the announcement of the acquisition of Black Knight, ICE’s multiple has come under a bit of pressure given the slowdown in the mortgage market. However, due to the diverse revenue mix and potential for a rebound in mortgage activity with the forward path of interest rates likely downward, I see a path towards multiple expansion for ICE.

As such, I am initiating coverage on ICE with a Buy rating as I see a likely fair multiple for the exchange on 2025 EPS as ~23x vs. the current multiple of 21x. Intercontinental Exchange: Track Record of Diversification and Growth Impressive Intercontinental Exchange is a global exchange and data company that offers exchange-traded futures, equities and options across a wide variety of asset classes.



In addition to exchange trading, the company provides clearing houses, data services, and analytics to customers across the capital markets. More recently, the company has expanded its mortgage technology offering (via its acquisitions of Ellie Mae and Black Knight) to include loan origination and closing technology, as well as servicing capa.

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