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Nasdaq Inc NDAQ

Morningstar Rating
$63.49 +0.19 (0.30%)
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Company Report

Nasdaq Acquires Adenza as It Pursues Its Vision of Becoming a Diversified Technology Company

Nasdaq’s exchange business continues to produce strong results as volatile markets lead to good trading volume industrywide, with Nasdaq's option exchanges in particular performing well. While we expect trading to normalize over time, the increased prevalence of $0-commission trading platforms and a shift toward higher option volume should provide a persistent benefit to Nasdaq’s exchanges. However, the equity exchange business remains highly competitive, and Nasdaq has been steadily losing market share for years. We expect this pressure to continue as two new exchanges were launched in 2020, Members Exchange and the MIAX Pearl Equities Exchange, with the Members Exchange also expanding into options in 2023.

Price vs Fair Value

NDAQ is trading at a 395% premium.
Price
$63.49
Fair Value
$89.00
Uncertainty
Medium
1-Star Price
$87.00
5-Star Price
$38.00
Economic Moat
Hcgcmg
Capital Allocation
Yhtypmlmx

Bulls Say, Bears Say

Bulls

Nasdaq continues to see strong growth from its newer more data-focused business lines as the company continues to invest in its data and technology offerings.

Bears

Nasdaq continues to face growing competitive pressure at its exchanges, with two new competitors launching in 2020.

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News

Trading Information

Previous Close Price
$63.30
Day Range
$62.8763.60
52-Week Range
$46.8864.25
Bid/Ask
$63.57 / $63.99
Market Cap
$36.60 Bil
Volume/Avg
157 / 2.4 Mil

Key Statistics

Price/Earnings (Normalized)
22.92
Price/Sales
5.42
Dividend Yield (Trailing)
1.42%
Dividend Yield (Forward)
1.51%
Total Yield
1.72%

Company Profile

Founded in 1971, Nasdaq is primarily known for its equity exchange, but in addition to its market-services business (about 35% of sales), the company sells and distributes market data as well as offers Nasdaq-branded indexes to asset managers and investors through its information-services segment (30%). Nasdaq's corporate-services business (20%) offers listing services and related investor relations products to publicly traded companies and through the company's market technology group (15%), Nasdaq facilitates the exchange operations of other exchanges throughout the world and provides financial compliance services.
Sector
Financial Services
Industry
Financial Data & Stock Exchanges
Stock Style Box
Mid Core
Total Number of Employees
8,568

Competitors

Valuation

Metric
NDAQ
LSEG
ICE
Price/Earnings (Normalized)
22.9228.4526.22
Price/Book Value
3.382.133.27
Price/Sales
5.426.188.30
Price/Cash Flow
20.0715.6920.11
Price/Earnings
NDAQ
LSEG
ICE

Financial Strength

Metric
NDAQ
LSEG
ICE
Quick Ratio
0.200.010.06
Current Ratio
0.991.001.01
Interest Coverage
4.544.704.15
Quick Ratio
NDAQ
LSEG
ICE

Profitability

Metric
NDAQ
LSEG
ICE
Return on Assets (Normalized)
5.48%0.25%2.34%
Return on Equity (Normalized)
18.04%8.34%13.01%
Return on Invested Capital (Normalized)
9.28%6.01%8.16%
Return on Assets
NDAQ
LSEG
ICE
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Economic Moat
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Coinbase Global Inc Ordinary Shares - Class A
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