10Y annualized return is
excellent
at 16.0% per year
NDAQ has met or exceeded earnings expectations in
the majority of
recent quarters (8/10)
Strong Gross Profit Margin
Decent Return on Equity
Solid Operating Profit Margin
Strong Net Profit Margin
Manageable Debt Levels
Strong Interest Coverage
🌟 Strong Financial Performance
⚙️ Successful Integration of Acquisitions
📈 Expanding Market Presence
🚀 Positive Outlook for 2025
💡 Innovation through AI and Technology
High Price-to-Earnings Ratio
High Price-to-Sales Ratio
High Price-to-Free Cash Flow Ratio
Low Current and Quick Ratios
🐢 Slow Growth in Corporate Solutions
⏳ Potential Sales Cycle Lengthening
Overall, Nasdaq demonstrates strong business quality with solid financial performance, successful integration of acquisitions, and a dominant market position. However, challenges in the Corporate Solutions segment and potential sales cycle delays could temper growth prospects. Future opportunities appear promising, particularly with a favorable economic environment and a focus on innovation.
Analysis Date: January 29, 2025
Last Updated: March 12, 2025
Past performance does not guarantee future results. The data presented is indicative and may not be updated in real-time.
Nasdaq, Inc. is a company that helps manage stock markets and provides technology to keep trading safe and fair. They offer tools that help businesses follow rules and prevent financial crime, and they provide data about market trends. Nasdaq also helps companies get listed on its stock exchange, where people can buy and sell shares. In simple terms, Nasdaq connects buyers and sellers in the stock market while ensuring everything runs smoothly and securely.
Streams of revenue
Geographic Distribution
Estimations for reference only
Core Products
Business Type
Business to Business
Competitive Advantages
Key Business Risks
Latest News
NDAQ's Q1 results are likely to reflect new customer acquisitions, higher analytics revenues, eVestment product offerings, as well as growth in tradin...
The reverse stock split is part of the Company's plan to regain compliance with the minimum bid price requirement for continued listing on The Nasdaq ...
The CNN Money Fear and Greed index showed some easing in overall fear level, while the index remained in the “Extreme Fear” zone on Monday.
Trailing Twelve Months (TTM) values provide a view of the company's performance over the last year.
Benjamin Graham's value investing approach focuses on finding stocks with a significant margin of safety between their intrinsic value and market price.
Intrinsic Value
Estimated fair value based on Graham's formula
$24.28
Current Market Price: $68.25
IV/P Ratio: 0.36x (>1.0 indicates undervalued)
Margin of Safety
Gap between intrinsic value and market price
-181.0%
Graham recommended a minimum of 20-30% margin of safety
Higher values indicate a greater potential discount to fair value
Graham Criteria Checklist
Benjamin Graham's value investing checklist for NDAQ
Positive earnings (5+ years)
Dividend history (5+ years)
P/E ratio ≤ 20 (35.14)
P/B ratio ≤ 1.5 (3.51)
Current ratio ≥ 2.0 (0.99x)
Long-term debt < Net current assets (-81.63x)
Margin of safety (-181.0%)
NDAQ does not meet all Graham criteria
Trailing Twelve Months (TTM) values provide a view of the company's performance over the last year.
Profitability metrics measure a company's ability to generate earnings relative to its revenue, operating costs, and other relevant metrics. Higher values generally indicate better performance.
Return on Equity (ROE)
Measures how efficiently a company uses its equity to generate profits
11.43%
Higher values indicate better returns for shareholders
TTM (as of 2025-04-30)
Gross Profit Margin
Percentage of revenue retained after accounting for cost of goods sold
47.48%
Higher values indicate better efficiency in production
TTM (as of 2025-04-30)
Net Profit Margin
Percentage of revenue retained after accounting for all expenses
15.10%
Higher values indicate better overall profitability
TTM (as of 2025-04-30)
An operating profit margin of 25.59% indicates that NDAQ is managing its operating expenses well, converting a significant portion of revenue into operating income.
With a net profit margin of 15.10%, NDAQ demonstrates effective cost control and strong profitability, reflecting its ability to convert sales into actual profit.
The price-to-free cash flow ratio of 25.97 indicates that the stock may be overvalued in terms of its cash generation capabilities, which could affect future growth.
Financial health metrics assess a company's ability to meet its financial obligations and its overall financial stability.
Debt to Equity Ratio
Total debt divided by total equity
0.88x
Lower values indicate less financial leverage and risk
Less than 1.0 is conservative, 1.0-2.0 is moderate, >2.0 indicates high risk
Q4 2024
Current Ratio
Current assets divided by current liabilities
0.99x
Higher values indicate better short-term liquidity
Less than 1.0 is concerning, 1.0-2.0 is adequate, greater than 2.0 is good
Q4 2024
A debt-to-equity ratio of 0.88 indicates that NDAQ has a reasonable amount of debt compared to its equity, suggesting a balanced capital structure.
An interest coverage ratio of 4.77 suggests that NDAQ comfortably covers its interest obligations, indicating a strong capacity to handle its debt.
Current ratio and quick ratio both below 1 (0.99) indicate potential liquidity issues, suggesting that NDAQ may struggle to cover its short-term liabilities with its short-term assets.
Meeting Expectations
Higher values indicate better execution and credibility
Recent Results
EPS
Revenue
Nasdaq achieved net revenues of $4.7 billion, a 9% increase from 2023, with solutions revenue growing by 10%. This demonstrates the company's strong underlying business model and ability to drive consistent revenue growth.
The integration of AxiomSL and Calypso into Nasdaq's Financial Technology Division has strengthened its competitive position and contributed to the growth of its client base, with 263 new clients and 424 upsells in 2024.
Nasdaq's Capital Access Platforms achieved an 80% win rate among eligible U.S. IPOs and extended its listings leadership for six consecutive years, showcasing its dominant market position.
The Corporate Solutions segment has faced headwinds due to a slow IPO environment and delisting challenges, resulting in lower revenue growth expectations.
Nasdaq forecasts durable revenue growth in 2025, supported by a strong IPO pipeline and a favorable economic backdrop, including consumer spending and low unemployment.
Nasdaq's focus on integrating AI across its product offerings enhances its competitive edge and drives client retention, with new innovations expected in 2025.
Uncertainties in regulatory environments and potential bank M&A could lead to longer sales cycles, impacting near-term growth.
Insider trading data shows purchase and sale activities by company executives and board members.
Insider trading patterns can provide insights into how company executives and board members view the stock's future prospects.
Insiders are buying significantly more than selling (ratio: 1.83x)
Total Bought
Total value of insider purchases in recent quarters
$455655
Higher values indicate stronger insider confidence
Total Sold
Total value of insider sales in recent quarters
$249371
Lower values relative to buying indicate possible undervaluation
Active Insiders
Number of insiders trading in recent quarters
10
High insider activity
Recent Trend
Change in insider trading pattern
NDAQ: No trend data available