Nasdaq (NDAQ): How the LSEG Data Partnership Shapes a Fresh Look at Valuation

Nasdaq (NDAQ) has announced a new partnership with LSEG. Its private markets datasets will be licensed and distributed through LSEG’s platforms. This collaboration reflects a strategic shift toward expanding transparency and data-driven insights across the private investment sector.

See our latest analysis for Nasdaq.

Nasdaq’s recent moves, including its collaboration with LSEG and last week's $642 million shelf registration filing, have put it firmly in the spotlight. After a solid year-to-date share price return of 12.7%, the company’s one-year total shareholder return stands at 12.2%. A strong 122.8% gain over five years shows long-term momentum is very much intact.

If Nasdaq’s data-driven strategy interests you, now might be the perfect moment to broaden your perspective and discover fast growing stocks with high insider ownership

But after this strong run and a forward-looking partnership, is Nasdaq’s current valuation offering an attractive entry point for new investors? Or has the market already priced in the company’s future growth?

Most Popular Narrative: 15% Undervalued

With the most widely followed narrative suggesting a fair value of $102.67 compared to Nasdaq’s last close at $87.24, there is a substantial gap between the market price and the potential value implied by anticipated growth and profitability.

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.

Want to know the growth blueprint driving this valuation call? The narrative factors in a bold mix of innovation, global reach, and ambitious financial goals. The quantitative assumptions powering this fair value might challenge your expectations. Find out exactly what numbers shape the bullish outlook by reading the full story before making your move.

Result: Fair Value of $102.67 (UNDERVALUED)

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

However, macroeconomic uncertainty and potential delays in client decision-making could still challenge Nasdaq's growth story and cast doubt on bullish forecasts.

Find out about the key risks to this Nasdaq narrative.

Another View: Multiples Suggest Less Value

While the narrative and analyst consensus point to Nasdaq being undervalued, a look at the price-to-earnings ratio tells a more cautious story. Nasdaq currently trades at 30.7x earnings, higher than both the industry average of 24.1x and the fair ratio of 16x. This premium signals that investors might be paying up for growth expectations, introducing greater valuation risk if those expectations are not met. Could the market eventually pull back to that fair ratio, or is this premium justified by Nasdaq’s innovation?

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

Build Your Own Nasdaq Narrative

If the current narratives do not align with your views or you would rather dig into the numbers yourself, building your own perspective takes just a few 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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