Nasdaq (NDAQ) AI Stock Analysis

• Market Cap: $50.68B
• Dividend Yield: 1.04%
• Average Volume (3M): 3.21M
• Price to Earnings (P/E): 40.0
• Beta (1Y): 0.80
• Revenue Growth: 23.55%
• EPS Growth: 49.91%
• Country: US
• Employees: 9,377
• Sector: Financial
• Sector Strength: 72
• Industry: Financial - Data & Stock Exchanges
• EPS (TTM): 0.85
• Shares Outstanding: 574,121,640
• 10 Day Avg. Volume: 3,152,107
• 30 Day Avg. Volume: 3,209,356
• PEG Ratio: -0.10
• Price to Book (P/B): 4.60
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 29.32
• Enterprise Value/Market Cap: 1.25
• Enterprise Value/Revenue: 4.56
• Enterprise Value/Gross Profit: 42.64
• Enterprise Value/Ebitda: 14.55
• 1Y Price Target: $101.69
• Price Target Upside: 7.22% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 14

• Rating: 78 Outperform
• Price Target: $107.00 ▲(12.82%Upside)

Nasdaq's overall stock score reflects strong financial performance and positive earnings call highlights, particularly the robust revenue and EPS growth. The technical analysis shows strong momentum, though caution is advised due to a high P/E ratio suggesting potential overvaluation. The positive earnings call sentiment further elevates the score.

Positive Factors

Financial Performance

Nasdaq reported adjusted EPS of $0.85 in the quarter, which beat our estimate of $0.80 and consensus of $0.81.

Market Position

NDAQ has been the best performing exchange over the last 3 months, driven by equity market strength and improving market sentiment.

Revenue Growth

The company delivered strong growth across all segments in the quarter, with total revenues up 13% and solutions revenue up 10%.

Negative Factors

Capital Raising

There are still some delays on the capital raising side from the larger corporates.

Economic Uncertainty

Some revenue weakness is expected in the near term from heightened economic uncertainty and a tough market for the listings business.

Nasdaq Business Overview & Revenue Model

Company Description

Nasdaq, Inc. (NDAQ) is a global technology company that serves the capital markets and other industries. It operates one of the largest electronic securities exchanges in the world, where it facilitates the trading of equities, options, fixed income, commodities, and other financial instruments. In addition to its exchange services, Nasdaq provides a variety of market technology solutions, data analytics, and investor services to institutions and corporations worldwide.

How the Company Makes Money

Nasdaq generates revenue through several key streams. First, the company earns transaction fees from its trading operations, where it charges for each trade executed on its platform. It also receives revenue from data products, as it sells real-time and historical market data to financial institutions, investors, and other market participants. Additionally, Nasdaq offers market technology solutions, providing software and infrastructure for trading, clearing, and market surveillance to exchanges and other financial institutions globally. Furthermore, the company derives income from its corporate services, including listing fees from companies that choose to list their shares on Nasdaq's exchanges, and additional services such as investor relations and governance solutions. Strategic partnerships and acquisitions also play a role in expanding its product offerings and increasing its market reach, contributing to its overall earnings.

Nasdaq Financial Statement Overview

Summary

Nasdaq exhibits strong profitability and effective cash management, with a Gross Profit Margin of 54.8% and a Net Profit Margin of 16.4%. Revenue has grown by 5.6%, and the company maintains robust EBIT and EBITDA margins. A moderate Debt-to-Equity Ratio of 0.84 indicates balanced leverage, though increasing liabilities should be monitored.

Income Statement

Nasdaq demonstrates strong profitability with a Gross Profit Margin of 54.8% and a Net Profit Margin of 16.4% for TTM. Revenue has grown by 5.6% over the past year, indicating a positive growth trajectory. The EBIT and EBITDA margins are robust at 25.5% and 32.3% respectively, showcasing efficient operational management. However, Gross Profit Margin has decreased compared to the previous year, indicating rising costs.

Balance Sheet

Nasdaq maintains a moderate Debt-to-Equity Ratio of 0.84, reflecting a balanced approach to leveraging. The Return on Equity stands at 11.1%, indicating efficient use of equity to generate profits. With an Equity Ratio of 37.7%, Nasdaq shows good financial stability, although there has been a slight increase in total liabilities over assets, which could pose a risk if not managed.

Cash Flow

The company has shown a 7.1% growth in Free Cash Flow, indicating effective cash generation capabilities. The Operating Cash Flow to Net Income Ratio is 1.62, suggesting strong cash flow relative to net income. The Free Cash Flow to Net Income Ratio of 1.45 further underscores solid cash management. However, continued investment activities resulting in negative investing cash flow could warrant monitoring.

Breakdown	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	7.40B	6.06B	6.23B	5.89B	5.63B
Gross Profit	2.99B	3.90B	2.58B	2.48B	2.12B
EBITDA	2.56B	2.00B	1.95B	1.90B	1.55B
Net Income	1.12B	1.06B	1.13B	1.19B	933.00M
Balance Sheet
Total Assets	30.39B	32.29B	20.87B	20.11B	17.98B
Cash, Cash Equivalents and Short-Term Investments	776.00M	473.00M	683.00M	601.00M	2.94B
Total Debt	9.87B	10.87B	5.85B	6.22B	5.93B
Total Liabilities	19.20B	21.47B	14.70B	13.71B	11.54B
Stockholders Equity	11.19B	10.82B	6.15B	6.39B	6.43B
Cash Flow
Free Cash Flow	1.73B	1.54B	1.55B	920.00M	1.06B
Operating Cash Flow	1.94B	1.70B	1.71B	1.08B	1.25B
Investing Cash Flow	-953.00M	-5.99B	49.00M	-2.65B	-231.00M
Financing Cash Flow	-2.56B	4.22B	1.04B	1.42B	1.38B

Nasdaq Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 94.84
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Negative
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For NDAQ, the sentiment is Positive. The current price of 94.84 is above the 20-day moving average (MA) of 89.87, above the 50-day MA of 86.50, and above the 200-day MA of 79.34, indicating a bullish trend. The MACD of 1.50 indicates Negative momentum. The RSI at 72.20 is Negative, neither overbought nor oversold. The STOCH value of 71.81 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for NDAQ.

Nasdaq Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
SPGI	80 Outperform	$162.81B	41.27	11.68%	0.70%	12.98%	42.72%
CBOE	80 Outperform	$25.75B	31.56	18.93%	1.02%	15.76%	1.97%
CME	80 Outperform	$99.88B	26.76	13.62%	3.79%	11.15%	13.98%
ICE	79 Outperform	$105.31B	37.48	10.27%	1.01%	13.25%	10.82%
NDAQ	78 Outperform	$50.68B	40.03	13.28%	1.04%	23.55%	49.91%
Sector *	68 Neutral	$17.10B	11.44	9.70%	3.58%	11.11%	-4.78%
MSCI	66 Neutral	$42.03B	35.17	-117.99%	1.24%	10.48%	0.98%

Nasdaq Corporate Events

Nasdaq Reports Strong Q2 2025 Financial Results

On July 24, 2025, Nasdaq announced its financial results for the second quarter of 2025, highlighting a 13% increase in net revenue to $1.3 billion compared to the previous year. The company reported strong growth across all divisions, with notable increases in solutions revenue, annualized recurring revenue, and financial technology revenue. Nasdaq also returned $155 million to shareholders through dividends and $100 million through stock repurchases while repaying $400 million of senior unsecured notes. The results reflect Nasdaq’s resilience and strategic focus on innovation and client relationships, as emphasized by CEO Adena Friedman and CFO Sarah Youngwood.

The most recent analyst rating on (NDAQ) stock is a Buy with a $98.00 price target. To see the full list of analyst forecasts on Nasdaq stock, see the NDAQ Stock Forecast page.

Nasdaq Holds Annual Shareholders Meeting on June 11

On June 11, 2025, Nasdaq, Inc. held its Annual Meeting of Shareholders where several key decisions were made. Shareholders elected twelve directors to serve until the 2026 meeting, approved executive compensation on an advisory basis, ratified Ernst & Young LLP as the independent accounting firm for 2025, and amended the company’s Certificate of Incorporation to allow limited exculpation of officers. These actions reflect Nasdaq’s ongoing governance and operational strategies, potentially impacting its corporate structure and stakeholder relations.

The most recent analyst rating on (NDAQ) stock is a Buy with a $98.00 price target. To see the full list of analyst forecasts on Nasdaq stock, see the NDAQ Stock Forecast page.