Nasdaq (NDAQ) AI Stock Analysis

• Market Cap: $51.71B
• Dividend Yield: 1.21%
• Average Volume (3M): 3.38M
• Price to Earnings (P/E): 40.8
• Beta (1Y): 0.81
• Revenue Growth: 25.89%
• EPS Growth: 16.37%
• Country: US
• Employees: 9,377
• Sector: Financial
• Sector Strength: 82
• Industry: Financial - Data & Stock Exchanges
• EPS (TTM): 0.79
• Shares Outstanding: 574,121,640
• 10 Day Avg. Volume: 3,724,539
• 30 Day Avg. Volume: 3,379,296
• PEG Ratio: -6.39
• Price to Book (P/B): 4.91
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 19.44
• Enterprise Value/Market Cap: 0.69
• Enterprise Value/Revenue: 1.24
• Enterprise Value/Gross Profit: 8.30
• Enterprise Value/Ebitda: 3.55
• 1Y Price Target: $85.43
• Price Target Upside: -5.15% Downside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 15

• Rating: 83 Outperform
• Price Target: $98.00 ▲(8.80%Upside)

Nasdaq's overall stock score of 83 reflects strong earnings growth and technical momentum as key strengths, supported by strategic initiatives and partnerships. However, the high valuation and geopolitical uncertainties present potential risks.

Positive Factors

Business Model

The quarter highlighted the durable nature of Nasdaq’s business model and its ability to deliver broad-based growth.

Earnings

Nasdaq reported adjusted EPS of $0.79, beating consensus of $0.77.

Revenue Growth

Revenues increased 13% on an adjusted basis, with solutions revenues growing 11%.

Negative Factors

Market Pullback

The market pullback will reset index AUM levels lower, which could negatively impact the company's performance.

Market Uncertainty

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

Share Pressure

The expiration of Thoma Bravo’s 43M shares lockup could present additional pressure on the stock.

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 demonstrates strong profitability with a Gross Profit Margin of 54.8% and a Net Profit Margin of 16.4%. Revenue growth of 5.6% and robust EBIT and EBITDA margins indicate efficient operational management. However, the decrease in Gross Profit Margin and slight rise in liabilities pose potential risks.

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	7.81B	7.40B	6.06B	6.23B	5.89B	5.63B
Gross Profit	4.28B	2.99B	3.90B	2.58B	2.48B	2.12B
EBITDA	2.52B	2.56B	2.00B	1.95B	1.90B	1.55B
Net Income	1.28B	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	708.00M	776.00M	473.00M	683.00M	601.00M	2.94B
Total Debt	9.72B	9.87B	10.87B	5.85B	6.22B	5.93B
Total Liabilities	19.09B	19.20B	21.47B	14.70B	13.71B	11.54B
Stockholders Equity	11.55B	11.19B	10.82B	6.15B	6.39B	6.43B
Cash Flow
Free Cash Flow	1.85B	1.73B	1.54B	1.55B	920.00M	1.06B
Operating Cash Flow	2.07B	1.94B	1.70B	1.71B	1.08B	1.25B
Investing Cash Flow	-979.00M	-953.00M	-5.99B	49.00M	-2.65B	-231.00M
Financing Cash Flow	-1.77B	-2.56B	4.22B	1.04B	1.42B	1.38B

Nasdaq Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 90.07
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Negative
• STOCH: Negative

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 90.07 is above the 20-day moving average (MA) of 87.12, above the 50-day MA of 82.63, and above the 200-day MA of 78.03, indicating a bullish trend. The MACD of 2.01 indicates Negative momentum. The RSI at 76.27 is Negative, neither overbought nor oversold. The STOCH value of 91.19 is Negative, 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
NDAQ	83 Outperform	$51.71B	40.84	11.43%	1.21%	25.89%	16.37%
SPGI	80 Outperform	$162.43B	41.58	11.68%	0.73%	12.98%	42.72%
CBOE	80 Outperform	$24.23B	30.33	18.93%	1.09%	15.76%	1.97%
CME	79 Outperform	$99.39B	27.73	13.40%	1.81%	11.72%	13.31%
ICE	79 Outperform	$105.04B	37.92	10.27%	1.06%	13.25%	10.82%
Sector *	69 Neutral	€21.81B	27.79	10.92%	4.76%	4.57%	1.35%
MSCI	68 Neutral	$45.47B	40.42	-117.99%	1.24%	11.67%	-0.89%

Nasdaq Corporate Events

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.

Nasdaq Reports Strong Q1 2025 Financial Results

On April 24, 2025, Nasdaq reported its financial results for the first quarter of 2025, showcasing a net revenue increase of 11% year-over-year to $1.2 billion, driven by growth across its divisions. The company highlighted strong performance in its Financial Technology and Index services, with significant growth in annualized recurring revenue and earnings per share. Nasdaq returned $138 million to shareholders through dividends and $115 million through stock repurchases, while also repurchasing $279 million of senior unsecured notes. The results underscore Nasdaq’s resilience and strategic focus on sustainable growth, leveraging its complementary solutions to navigate complex economic conditions.