Nasdaq (NDAQ) AI Stock Analysis

• Market Cap: $50.01B
• Dividend Yield: 1.17%
• Average Volume (3M): 3.49M
• Price to Earnings (P/E): 33.5
• Beta (1Y): 0.80
• Revenue Growth: 23.55%
• EPS Growth: 49.91%
• Country: US
• Employees: 9,377
• Sector: Financial
• Sector Strength: 70
• Industry: Financial - Data & Stock Exchanges
• EPS (TTM): 0.85
• Shares Outstanding: 573,795,200
• 10 Day Avg. Volume: 5,550,452
• 30 Day Avg. Volume: 3,489,690
• PEG Ratio: -5.22
• Price to Book (P/B): 3.97
• Price to Sales (P/S): 6.01
• P/FCF Ratio: 25.67
• Enterprise Value/Market Cap: 1.21
• Enterprise Value/Revenue: 7.46
• Enterprise Value/Gross Profit: 18.79
• Enterprise Value/Ebitda: 21.39
• 1Y Price Target: $104.67
• Price Target Upside: 19.61% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 16

• Rating: 70 Outperform
• Price Target: $98.00 ▲(11.99% Upside)

Nasdaq's overall stock score reflects strong financial performance and positive earnings call sentiment, which are the most significant factors. However, technical analysis indicates bearish momentum, and the valuation suggests the stock may be overvalued, which tempers the overall score.

Positive Factors

Revenue Growth

Nasdaq's consistent revenue growth across various segments, including a 12% YoY increase, indicates strong market demand and effective business strategies, supporting long-term financial stability.

Market Services Growth

The 21% growth in Market Services highlights Nasdaq's competitive edge and robust market position, ensuring sustained revenue streams and reinforcing its leadership in financial services.

IPO Success and Listings Leadership

Nasdaq's continued success in IPOs and maintaining a 79% win rate underscores its strong brand and market leadership, attracting new listings and enhancing its revenue potential.

Negative Factors

High Debt Levels

Despite improvements, high debt levels can strain financial flexibility and cash flow, posing risks to long-term financial health and limiting investment opportunities.

Regulatory Uncertainty

Regulatory uncertainties can delay implementations and impact client operations, posing challenges to Nasdaq's business environment and potentially affecting growth prospects.

Expense Increase

Rising operating expenses, driven by compensation cycles, can pressure profit margins and reduce operational efficiency, impacting long-term profitability if not managed effectively.

Nasdaq Business Overview & Revenue Model

Company Description

Nasdaq, Inc. operates as a technology company that serves capital markets and other industries worldwide. The Market Technology segment includes anti financial crime technology business, which offers Nasdaq Trade Surveillance, a SaaS solution for brokers and other market participants to assist them in complying with market rules, regulations, and internal market surveillance policies; Nasdaq Automated Investigator, a cloud-deployed anti-money laundering tool; and Verafin, a SaaS technology provider of anti-financial crime management solutions. This segment also handles assets, such as cash equities, equity derivatives, currencies, interest-bearing securities, commodities, energy products, and digital currencies. The Investment Intelligence segment sells and distributes historical and real-time market data; develops and licenses Nasdaq-branded indexes and financial products; and provides investment insights and workflow solutions. The Corporate Platforms segment operates listing platforms; and offers investor relations intelligence and governance solutions. As of December 31, 2021, it had 4,178 companies listed securities on The Nasdaq Stock Market, including 1,632 listings on The Nasdaq Global Select Market; 1,169 on The Nasdaq Global Market; and 1,377 on The Nasdaq Capital Market. 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. This segment operates various exchanges and other marketplace facilities across various asset classes, which include derivatives, commodities, cash equity, debt, structured products, and exchange traded products; and provides broker, clearing, settlement, and central depository services. The company was formerly known as The NASDAQ OMX Group, Inc. and changed its name to Nasdaq, Inc. in September 2015. Nasdaq, Inc. was founded in 1971 and is headquartered in New York, New York.

How the Company Makes Money

Nasdaq generates revenue through multiple key streams. Primarily, it earns money from transaction-based fees on trades executed on its exchanges, which include equities, options, and futures. Additionally, Nasdaq collects listing fees from companies that choose to list their shares on its exchanges. Another significant revenue stream comes from market data services, where the company sells real-time and historical market data to institutional clients, brokers, and financial professionals. Nasdaq also provides technology solutions to other exchanges and financial institutions, which include trading, surveillance, and clearing services. Partnerships with various financial institutions and market participants enhance its earnings by expanding its client base and product offerings, while ongoing innovations in technology and trading platforms contribute to its competitive edge in the financial markets.

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	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	8.11B	7.40B	6.06B	6.23B	5.89B	5.63B
Gross Profit	3.22B	2.99B	2.55B	2.34B	2.23B	1.94B
EBITDA	2.83B	2.46B	2.00B	1.85B	1.93B	1.51B
Net Income	1.51B	1.12B	1.06B	1.13B	1.19B	933.00M
Balance Sheet
Total Assets	30.38B	30.39B	32.29B	20.87B	20.11B	17.98B
Cash, Cash Equivalents and Short-Term Investments	2.01B	776.00M	641.00M	683.00M	601.00M	2.94B
Total Debt	9.63B	9.87B	10.87B	5.85B	6.22B	5.93B
Total Liabilities	18.57B	19.20B	21.47B	14.70B	13.71B	11.54B
Stockholders Equity	11.81B	11.19B	10.82B	6.15B	6.39B	6.43B
Cash Flow
Free Cash Flow	2.13B	1.73B	1.54B	1.55B	920.00M	1.06B
Operating Cash Flow	2.36B	1.94B	1.70B	1.71B	1.08B	1.25B
Investing Cash Flow	-1.25B	-953.00M	-5.99B	49.00M	-2.65B	-231.00M
Financing Cash Flow	-2.77B	-2.56B	4.22B	1.04B	1.42B	1.38B

Nasdaq Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 87.51
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For NDAQ, the sentiment is Negative. The current price of 87.51 is below the 20-day moving average (MA) of 91.93, below the 50-day MA of 93.31, and above the 200-day MA of 82.97, indicating a neutral trend. The MACD of -1.67 indicates Positive momentum. The RSI at 32.98 is Neutral, neither overbought nor oversold. The STOCH value of 6.05 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for NDAQ.

Nasdaq Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
ICE	81 Outperform	96.01B	32.11	10.56%	1.13%	11.44%	29.10%
CBOE	77 Outperform	25.47B	28.60	19.26%	1.07%	18.99%	17.97%
CME	77 Outperform	97.40B	26.01	13.54%	3.96%	11.15%	13.98%
MSCI	71 Outperform	43.74B	37.41	-133.00%	1.24%	10.48%	0.98%
NDAQ	70 Outperform	$50.01B	33.49	13.28%	1.17%	23.55%	49.91%
SPGI	69 Neutral	148.74B	37.27	11.98%	0.78%	10.72%	23.30%
Sector *	68 Neutral	$18.00B	11.42	9.92%	3.81%	9.73%	1.22%

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.

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.