BGC Group, Inc. (BGC)
Financial Services · NMS · US
Fundamentals
Valuation and ratings
BGC Group, Inc. trades at USD11.40, which is 28% below the USD14.63 our discounted cash flow model puts on the business. On that measure alone it screens as undervalued, though a DCF is an argument rather than a measurement, and the market is frequently right about why something is cheap.
Our moat model scores it 56 out of 100, which is a moat, but not a deep one. A moat is a structural reason competitors cannot take the profits away, and it matters more to a long holding period than any single quarter's numbers do.
It changes hands at 29.5 times earnings. Be careful reading that in isolation: for a cyclical business a low P/E arrives at the top of the cycle, when profits are peaking and about to fall, which is exactly when the shares look cheapest and are not.
About BGC Group, Inc.
BGC Group, Inc. operates as a financial brokerage and technology company in the United States, Europe, the Middle East, Africa, and the Asia Pacific. The company offers various brokerage services, such as government bonds and corporate bonds as well as interest rate derivatives and credit derivatives, foreign exchange, fixed income products, equities and futures and options; and brokerage and trade execution of ECS products, including listed derivatives and physical commodities in the oil and refined, and environmental and energy transition markets; and ship chartering services. It also provides price discovery, trade execution, brokerage services, clearing, information, and other back-office services to financial and non-financial institutions. The company also operates BGC Compute Infrastructure Markets, a division focused on the secondary market for compute and memory capacity. In addition, the company offers financial technology solutions, network and connectivity solutions, market data and related information services, market infrastructure, and post-trade services. Further, the company's integrated platform is designed to provide flexibility to customers regarding price discovery, trade execution and processing of transactions, as well as accessing liquidity through its platforms, for transactions executed either OTC or through an exchange. It primarily serves banks, broker-dealers, trading firms, hedge funds, governments, corporations, investment firms, commodity trading firms, and end users. BGC Group, Inc. was founded in 1945 and is headquartered in New York, New York.
BGC passes 3 of our 30 screens today
Each screen prints the exact criteria it used, and the circumstances in which it is wrong.
Smart money ownership
12 of the funds we track reported a position in their latest SEC 13F filing. Largest first:
- Ken Griffin, CITADEL ADVISORS LLC$57.43M · 0.0% of book
- George Soros, SOROS FUND MANAGEMENT LLC$41.07M · 0.5% of book
- Arrowstreet Capital, ARROWSTREET CAPITAL, LIMITED PARTNERSHIP$14.89M · 0.0% of book
- Muhlenkamp, MUHLENKAMP & CO INC$14.12M · 3.7% of book
- D. E. Shaw, D. E. Shaw & Co., Inc.$13.89M · 0.0% of book
A word of warning on reading these figures: a 13F reports the market value of a holding, so a fund that traded nothing at all still appears to have sold when the price fell. We found 102 companies where the standard reading gives the opposite answer. Only the share count is honest.
Common questions
Is BGC Group, Inc. (BGC) undervalued?
Against our discounted cash flow estimate of USD14.63, BGC at USD11.40 is 28% below fair value. That is one model's answer, not a recommendation, and most of a DCF's output sits in a terminal value nobody can forecast.
Which funds own BGC?
12 of the institutions we track reported a position in BGC in their most recent SEC 13F filing. A 13F is filed up to 45 days after quarter end, so it tells you what a fund held then, not what it holds now.
What is BGC's P/E ratio?
BGC trades at 29.5 times earnings. A low P/E is not automatically cheap: on a cyclical company it is usually a warning that earnings are at a peak.
The full research page for BGC, with financial statements, ownership detail, peer comparison and alerts, is free inside the app.
Data from company filings, exchange quotes and SEC EDGAR 13F disclosures. Quotes are delayed. Metrics we do not have are left out rather than estimated. Educational information, not financial advice.