MarketAxess Holdings stock may be about 39% undervalued relative to its intrinsic value estimate from the Excess Returns model, even as its share price has fallen roughly 72.5% over the past five years. The model uses a book value of $33.49 per share and stable earnings per share of $9.98 against a cost of equity of $3.34 per share, yielding an excess return of $6.63 per share and an intrinsic value of about $193.65 per share, compared with the current price around $118.60. The recent launch of the TraX Tape data platform supports the case for stronger revenue and data monetisation, though pressure on trading volumes remains a key risk. On a price-to-earnings basis, the stock trades at around 13.6 times earnings, close to its estimated fair P/E of about 12.7 times, suggesting the market price already aligns reasonably with fundamentals. Overall, the valuation picture is mixed, with the Excess Returns model pointing to a sizeable discount while the P/E workup indicates roughly fair value.
MarketAxess Holdings IncExcess Returns model suggests 39% undervaluation, and TraX Tape launch supports revenue growth.