NDAQ Stock Overview
Nasdaq, Inc. operates as a technology company that serves capital markets and other industries worldwide.
Price History & Performance
|Historical stock prices|
|Current Share Price||US$181.11|
|52 Week High||US$214.96|
|52 Week Low||US$134.21|
|1 Month Change||-8.76%|
|3 Month Change||-8.93%|
|1 Year Change||26.06%|
|3 Year Change||113.75%|
|5 Year Change||165.01%|
|Change since IPO||1,107.40%|
Recent News & Updates
Nasdaq - 20%+ Underperformance, This Is A 'Hold'
It's time to update the overall thesis on Nasdaq (Not the index, but the company). I called this one a firm "HOLD" back in October. Based on recent historical underperformance of double digits, and my own outperformance of this by close to 28%, it was clearly the right choice. There's no doubt to my mind that Nasdaq is a solid business - just not investable at any price. Let's see why the thesis hasn't changed.
Does Nasdaq (NASDAQ:NDAQ) Deserve A Spot On Your Watchlist?
It's only natural that many investors, especially those who are new to the game, prefer to buy shares in 'sexy' stocks...
|NDAQ||US Capital Markets||US Market|
Return vs Industry: NDAQ matched the US Capital Markets industry which returned 25.7% over the past year.
Return vs Market: NDAQ exceeded the US Market which returned 10.2% over the past year.
|NDAQ Average Weekly Movement||3.3%|
|Capital Markets Industry Average Movement||0.7%|
|Market Average Movement||6.6%|
|10% most volatile stocks in US Market||15.7%|
|10% least volatile stocks in US Market||2.4%|
Stable Share Price: NDAQ is less volatile than 75% of US stocks over the past 3 months, typically moving +/- 3% a week.
Volatility Over Time: NDAQ's weekly volatility (3%) has been stable over the past year.
About the Company
Nasdaq, Inc. operates as a technology company that serves capital markets and other industries worldwide. It operates through four segments: Market Services, Corporate Platforms, Investment Intelligence, and Market Technology. The Market Services segment includes equity derivative trading and clearing, cash equity trading, fixed income and commodities trading and clearing, and trade management service businesses.
Nasdaq Fundamentals Summary
|NDAQ fundamental statistics|
Is NDAQ overvalued?See Fair Value and valuation analysis
Earnings & Revenue
|NDAQ income statement (TTM)|
|Cost of Revenue||US$2.56b|
Last Reported Earnings
Sep 30, 2021
Next Earnings Date
Jan 26, 2022
|Earnings per share (EPS)||6.90|
|Net Profit Margin||19.60%|
How did NDAQ perform over the long term?See historical performance and comparison
1.2%Current Dividend Yield
Is Nasdaq undervalued compared to its fair value and its price relative to the market?
Price to Earnings (PE) ratio
Share Price vs. Fair Value
Below Fair Value: NDAQ ($181.11) is trading above our estimate of fair value ($170.46)
Significantly Below Fair Value: NDAQ is trading above our estimate of fair value.
Price To Earnings Ratio
PE vs Industry: NDAQ is poor value based on its PE Ratio (26.3x) compared to the US Capital Markets industry average (15.5x).
PE vs Market: NDAQ is poor value based on its PE Ratio (26.3x) compared to the US market (17x).
Price to Earnings Growth Ratio
PEG Ratio: NDAQ is poor value based on its PEG Ratio (9.5x)
Price to Book Ratio
PB vs Industry: NDAQ is good value based on its PB Ratio (4.8x) compared to the US Capital Markets industry average (42.2x).
How is Nasdaq forecast to perform in the next 1 to 3 years based on estimates from 13 analysts?
Forecasted annual earnings growth
Earnings and Revenue Growth Forecasts
Analyst Future Growth Forecasts
Earnings vs Savings Rate: NDAQ's forecast earnings growth (2.8% per year) is above the savings rate (2%).
Earnings vs Market: NDAQ's earnings (2.8% per year) are forecast to grow slower than the US market (13% per year).
High Growth Earnings: NDAQ's earnings are forecast to grow, but not significantly.
Revenue vs Market: NDAQ's revenue (2.5% per year) is forecast to grow slower than the US market (9.2% per year).
High Growth Revenue: NDAQ's revenue (2.5% per year) is forecast to grow slower than 20% per year.
Earnings per Share Growth Forecasts
Future Return on Equity
Future ROE: NDAQ's Return on Equity is forecast to be high in 3 years time (20.2%)
How has Nasdaq performed over the past 5 years?
Historical annual earnings growth
Earnings and Revenue History
Quality Earnings: NDAQ has high quality earnings.
Growing Profit Margin: NDAQ's current net profit margins (19.6%) are higher than last year (17.4%).
Past Earnings Growth Analysis
Earnings Trend: NDAQ's earnings have grown significantly by 25.4% per year over the past 5 years.
Accelerating Growth: NDAQ's earnings growth over the past year (26.6%) exceeds its 5-year average (25.4% per year).
Earnings vs Industry: NDAQ earnings growth over the past year (26.6%) underperformed the Capital Markets industry 86.4%.
Return on Equity
High ROE: NDAQ's Return on Equity (18.1%) is considered low.
How is Nasdaq's financial position?
Financial Position Analysis
Short Term Liabilities: NDAQ's short term assets ($5.5B) do not cover its short term liabilities ($5.6B).
Long Term Liabilities: NDAQ's short term assets ($5.5B) do not cover its long term liabilities ($6.4B).
Debt to Equity History and Analysis
Debt Level: NDAQ's net debt to equity ratio (88.2%) is considered high.
Reducing Debt: NDAQ's debt to equity ratio has increased from 64.5% to 93.3% over the past 5 years.
Debt Coverage: NDAQ's debt is not well covered by operating cash flow (19.1%).
Interest Coverage: NDAQ's interest payments on its debt are well covered by EBIT (13.4x coverage).
What is Nasdaq current dividend yield, its reliability and sustainability?
Current Dividend Yield
Dividend Yield vs Market
Notable Dividend: NDAQ's dividend (1.19%) isn’t notable compared to the bottom 25% of dividend payers in the US market (1.35%).
High Dividend: NDAQ's dividend (1.19%) is low compared to the top 25% of dividend payers in the US market (3.48%).
Stability and Growth of Payments
Stable Dividend: NDAQ's dividends per share have been stable in the past 10 years.
Growing Dividend: NDAQ's dividend payments have increased over the past 10 years.
Current Payout to Shareholders
Dividend Coverage: With its reasonably low payout ratio (29.5%), NDAQ's dividend payments are well covered by earnings.
Future Payout to Shareholders
Future Dividend Coverage: NDAQ's dividends in 3 years are forecast to be well covered by earnings (31.2% payout ratio).
How experienced are the management team and are they aligned to shareholders interests?
Average management tenure
Adena Friedman (51 yo)
Ms. Adena T. Friedman has been the President of Nasdaq, Inc. since June 16, 2014 and its Chief Executive Officer and Director since January 1, 2017. She serves as Director at FCLT Global. Ms. Friedman has...
CEO Compensation Analysis
Compensation vs Market: Adena's total compensation ($USD15.81M) is above average for companies of similar size in the US market ($USD11.29M).
Compensation vs Earnings: Adena's compensation has been consistent with company performance over the past year.
Experienced Management: NDAQ's management team is considered experienced (2.6 years average tenure).
Experienced Board: NDAQ's board of directors are considered experienced (5 years average tenure).
Who are the major shareholders and have insiders been buying or selling?
Insider Trading Volume
Insider Buying: NDAQ insiders have only sold shares in the past 3 months.
Recent Insider Transactions
Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.
Nasdaq, Inc.'s employee growth, exchange listings and data sources
- Name: Nasdaq, Inc.
- Ticker: NDAQ
- Exchange: NasdaqGS
- Founded: 1971
- Industry: Financial Exchanges and Data
- Sector: Diversified Financials
- Implied Market Cap: US$30.286b
- Shares outstanding: 167.22m
- Website: https://www.nasdaq.com
Number of Employees
- Nasdaq, Inc.
- 151 West 42nd Street
- New York
- New York
- United States
Company Analysis and Financial Data Status
|Data||Last Updated (UTC time)|
|Company Analysis||2022/01/19 23:37|
|End of Day Share Price||2022/01/19 00:00|
Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.