Nasdaq (NDAQ): Exploring Valuation as Regulatory Tech Partnership With Revolut Expands Across Europe

Nasdaq (NDAQ) has expanded its regulatory technology partnership with fintech company Revolut, highlighting the growing demand for comprehensive compliance solutions in the fintech sector. This move focuses on expanded use of Nasdaq’s AxiomSL platform, a cloud-enabled solution for regulatory reporting and risk management now adopted across Europe.

See our latest analysis for Nasdaq.

Nasdaq’s move to deepen its partnership with Revolut comes as the company rides a wave of renewed investor interest. Its 1-year total shareholder return is a robust 12.7%, and shares are up 17.4% so far in 2025. Momentum has clearly been building over the past month, suggesting that the market may be viewing Nasdaq’s tech-driven strategy as a growth lever that could outweigh short-term uncertainties.

If Nasdaq’s regulatory tech ambitions caught your attention, the next step is to broaden your radar and discover fast growing stocks with high insider ownership

With Nasdaq’s shares trading below their average analyst price target, but with a higher price-to-earnings ratio compared to peers, the question now is whether the stock actually offers long-term value or if future growth is already reflected in the current price.

Most Popular Narrative: 11.8% Undervalued

At $90.92, Nasdaq shares currently sit below the narrative’s fair value of $103.13. This gap raises important questions about market optimism versus longer-term expectations, and investors are watching to see if the company can maintain its momentum.

Nasdaq's strategic investments in product innovation, international market expansion, and new product launches, especially in the index business, are expected to drive sustained revenue growth. These initiatives aim to strengthen their global position and diversify revenue streams from the Nasdaq 100, supporting long-term earnings performance.

Read the complete narrative.

What’s powering analyst optimism here? Dive into the full narrative to uncover the relentless profit expansion, international plays, and a high-growth formula that go beyond short-term trends. The drivers behind that higher fair value may surprise you, so see the underlying assumptions and projections for yourself.

Result: Fair Value of $103.13 (UNDERVALUED)

Have a read of the narrative in full and understand what's behind the forecasts.

However, persistent macroeconomic uncertainty and fierce industry competition could quickly challenge the optimistic outlook and stall Nasdaq's projected growth trajectory.

Find out about the key risks to this Nasdaq narrative.

Another View: What Do Earnings Multiples Say?

Looking at Nasdaq’s valuation through the lens of its price-to-earnings ratio shows a more cautious picture. The company trades at 31.9x, more expensive than the US Capital Markets industry average of 23.8x and well above the fair ratio of 16x. This gap could signal valuation risk if market sentiment shifts. Could this premium be justified long term?

See what the numbers say about this price — find out in our valuation breakdown.

Build Your Own Nasdaq Narrative

If you see things differently or want to dig deeper on your own, you can shape your own perspective in under three minutes. Do it your way

A great starting point for your Nasdaq research is our analysis highlighting 2 key rewards and 1 important warning sign that could impact your investment decision.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

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