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Nasdaq Inc NDAQ

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Stock XNAS Rating as of
$86.74 +0.02 (0.02%)
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As of Delayed Price Post-Trading: $87.03 +0.29

Company Report

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

Michael Miller

Nasdaq’s exchange business continues to produce strong results as volatile markets lead to good trading volume industrywide, with its option exchanges in particular performing well. While trading volume growth has slowed, 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, MEMX and MIAX Pearl Equities Exchange, with MEMX also expanding into options in 2023. Additionally, the Texas Stock Exchange plans to launch in 2026.

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Price vs Fair Value

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NDAQ is trading at a 85% premium.
Price
$86.72
Fair Value
$43.00
Uncertainty
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1-Star Price
$531.40
5-Star Price
$12.50
Economic Moat
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Capital Allocation
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Bulls Say, Bears Say

Bulls

Nasdaq continues to see strong growth from its newer, more data-focused business lines as it 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 and another planned in 2026. This could lead to falling market share in its exchange business.

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News

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Trading Information

Previous Close Price
$86.72
Day Range
$85.60–87.26
52-Week Range
$77.09–101.79
Bid/Ask
$85.80 / $88.00
Shares Outstanding
565.54M
Market Cap
$49.06B
Volume/Avg
2M / 3M

Key Statistics

Price/Earnings (Normalized)
23.98
Price/Sales
6.07
Dividend Yield (Trailing)
1.23%
Dividend Yield (Forward)
1.23%
Total Yield
3.38%

Company Profile

Founded in 1971, Nasdaq is primarily known for its equity exchange, but in addition to its trading business (about 22.5% of sales), the company sells market and financial data to investors, offers Nasdaq-branded indexes, and lists companies through its capital access segment (42.5%). Nasdaq's newest segment, financial technology, was primarily constructed through the acquisitions of Verafin and Adenza and has expanded the company into capital management, financial crime, and regulatory compliance software (35%) as it seeks to become a diversified technology company.
Sector
Financial Services
Industry
Financial Data & Stock Exchanges
Stock Style Box
Mid Core
Total Number of Employees
9,613
Website
https://www.nasdaq.com

Competitors

Valuation

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Metric
NDAQ
DB1
CME
Price/Earnings (Normalized)
 23.9821.8121.74
Price/Book Value
 4.114.263.48
Price/Sales
 6.075.9713.67
Price/Cash Flow
 19.5915.6521.10
Price/Earnings
NDAQ
DB1
CME

Financial Strength

Metric
NDAQ
DB1
CME
Quick Ratio
 0.770.740.02
Current Ratio
 1.001.011.02
Interest Coverage
 7.6720.7932.93
Quick Ratio
NDAQ
DB1
CME

Profitability

Metric
NDAQ
DB1
CME
Return on Assets (Normalized)
 7.02%0.72%2.30%
Return on Equity (Normalized)
 17.66%20.03%15.36%
Return on Invested Capital (Normalized)
 10.99%1.01%14.10%
Return on Assets
NDAQ
DB1
CME

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