Nasdaq (NDAQ) AI Stock Analysis

• Market Cap: $48.85B
• Dividend Yield: 1.17%
• Average Volume (3M): 3.17M
• Price to Earnings (P/E): 30.5
• Beta (1Y): 0.76
• Revenue Growth: 16.41%
• EPS Growth: 68.03%
• Country: US
• Employees: 9,377
• Sector: Financial
• Sector Strength: 70
• Industry: Financial - Data & Stock Exchanges
• EPS (TTM): 0.88
• Shares Outstanding: 570,995,400
• 10 Day Avg. Volume: 3,062,988
• 30 Day Avg. Volume: 3,168,658
• 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: 1.23
• Enterprise Value/Revenue: 7.36
• Enterprise Value/Gross Profit: 14.81
• Enterprise Value/Ebitda: 20.17
• 1Y Price Target: $106.09
• Price Target Upside: 23.09% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 12
• EPS Forecast (FY): 3.41
• Revenue Forecast (FY): $5.21B

• Rating: 73 Outperform
• Price Target: $99.00 ▲(14.86% Upside)

Nasdaq's overall stock score reflects strong financial performance and positive earnings call sentiment, which are offset by mixed technical indicators and a high valuation. The company's robust revenue growth and strategic focus on IPOs and innovative solutions position it well for future growth, but attention to cash flow stability and valuation is necessary.

Positive Factors

Revenue Growth

Nasdaq's consistent revenue growth highlights its expanding market reach and successful business strategies, ensuring long-term financial stability.

Market Services Growth

The significant growth in Market Services underscores Nasdaq's strong competitive position and ability to capitalize on market opportunities.

IPO Success

Nasdaq's leadership in IPOs enhances its reputation and attracts more listings, contributing to sustained revenue and market influence.

Negative Factors

Decline in Free Cash Flow

The decline in free cash flow growth could impact Nasdaq's ability to invest in new opportunities and maintain financial flexibility.

Expense Increase

Rising expenses may pressure profit margins, requiring careful management to sustain profitability and operational efficiency.

Regulatory Uncertainty

Regulatory uncertainties can delay business implementations and impact client confidence, posing challenges to growth and operations.

Nasdaq Business Overview & Revenue Model

Company Description

Nasdaq, Inc. (NDAQ) is a global technology company that operates the Nasdaq stock exchange and provides a range of financial services. Founded in 1971, Nasdaq is known for its electronic trading platform, which facilitates the buying and selling of securities. The company operates in several sectors, including market services, listing services, and information services. Its core products and services include equity and options trading, market data solutions, and listings for public companies on its exchanges.

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's financial performance is strong, with impressive revenue growth and profitability. The income statement shows robust margins, and the balance sheet is stable with moderate leverage. However, the decline in free cash flow growth is a concern that needs attention.

Income Statement

Nasdaq's income statement shows strong profitability with a TTM gross profit margin of 49.72% and a net profit margin of 19.89%. The company has demonstrated impressive revenue growth of 69% in the TTM period, indicating robust business expansion. EBIT and EBITDA margins are healthy at 28.84% and 36.50%, respectively, reflecting efficient operations. Overall, the income statement reflects a strong financial performance with significant growth and profitability.

Balance Sheet

The balance sheet indicates a stable financial position with a debt-to-equity ratio of 0.79, showing moderate leverage. Return on equity is solid at 13.96%, suggesting effective use of equity capital. The equity ratio stands at 39.22%, indicating a balanced capital structure. While the company maintains a healthy balance sheet, the relatively high total debt requires monitoring to ensure continued financial stability.

Cash Flow

Cash flow analysis reveals a decline in free cash flow growth by 168.7% in the TTM period, which is a concern. However, the operating cash flow to net income ratio is 0.30, and the free cash flow to net income ratio is 0.90, indicating that the company generates sufficient cash relative to its net income. While cash generation remains strong, the negative free cash flow growth warrants attention.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	8.17B	7.40B	6.06B	6.23B	5.89B	5.63B
Gross Profit	4.06B	2.99B	2.55B	2.34B	2.23B	1.94B
EBITDA	2.98B	2.46B	2.00B	1.85B	1.93B	1.51B
Net Income	1.63B	1.12B	1.06B	1.13B	1.19B	933.00M
Balance Sheet
Total Assets	30.65B	30.39B	32.29B	20.87B	20.11B	17.98B
Cash, Cash Equivalents and Short-Term Investments	697.00M	776.00M	641.00M	683.00M	601.00M	2.94B
Total Debt	9.55B	9.87B	10.87B	5.85B	6.22B	5.93B
Total Liabilities	18.62B	19.20B	21.47B	14.70B	13.71B	11.54B
Stockholders Equity	12.02B	11.19B	10.82B	6.15B	6.39B	6.43B
Cash Flow
Free Cash Flow	2.10B	1.73B	1.54B	1.55B	920.00M	1.06B
Operating Cash Flow	2.33B	1.94B	1.70B	1.71B	1.08B	1.25B
Investing Cash Flow	-1.47B	-953.00M	-5.99B	49.00M	-2.65B	-231.00M
Financing Cash Flow	-2.41B	-2.56B	4.22B	1.04B	1.42B	1.38B

Nasdaq Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 86.19
• 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 Neutral. The current price of 86.19 is below the 20-day moving average (MA) of 87.76, below the 50-day MA of 89.71, and above the 200-day MA of 84.46, indicating a neutral trend. The MACD of -1.08 indicates Positive momentum. The RSI at 42.39 is Neutral, neither overbought nor oversold. The STOCH value of 18.90 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for NDAQ.

Nasdaq Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
CME	76 Outperform	$96.59B	25.96	13.35%	3.94%	5.84%	8.51%
CBOE	75 Outperform	$26.31B	26.99	21.51%	1.09%	16.74%	26.74%
NDAQ	73 Outperform	$48.85B	30.51	14.07%	1.17%	16.41%	68.03%
SPGI	73 Outperform	$151.16B	36.29	12.57%	0.77%	9.04%	21.35%
ICE	71 Outperform	$83.80B	26.76	11.32%	1.28%	8.96%	30.16%
Sector *	68 Neutral	$18.00B	11.42	9.92%	3.81%	9.73%	1.22%
MSCI	66 Neutral	$43.20B	36.44	―	1.18%	9.02%	3.45%

Nasdaq Corporate Events

Nasdaq Achieves Milestone in Q3 2025 with Strong Revenue Growth

Nasdaq, Inc. is a global technology company that provides a diverse range of services including data, analytics, software, and exchange capabilities to clients in the financial sector. The company aims to enhance liquidity, transparency, and integrity in the global economy.

Nasdaq Achieves Milestone with Q3 2025 Financial Results

On October 21, 2025, Nasdaq reported its financial results for the third quarter of 2025, highlighting a significant milestone with Solutions quarterly revenue surpassing $1 billion and annual recurring revenues reaching $3 billion for the first time. The company experienced a 15% increase in net revenue compared to the previous year, driven by strong growth in Financial Technology and Index revenues. Nasdaq’s performance reflects its successful transformation into a leading technology platform, with substantial investments in technology and people to drive long-term growth. The company also returned $155 million to shareholders through dividends and share repurchases, and updated its 2025 non-GAAP operating expense and tax rate guidance.

The most recent analyst rating on (NDAQ) stock is a Buy with a $101.00 price target. To see the full list of analyst forecasts on Nasdaq stock, see the NDAQ Stock Forecast page.