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NASDAQ INC (NDAQ) Stock Fundamental Analysis

NASDAQ:NDAQ - Nasdaq - US6311031081 - Common Stock - Currency: USD

81.78  +0.57 (+0.7%)

After market: 81.78 0 (0%)

Fundamental Rating

5

We assign a fundamental rating of 5 out of 10 to NDAQ. NDAQ was compared to 230 industry peers in the Capital Markets industry. NDAQ has only an average score on both its financial health and profitability. NDAQ is valied quite expensively at the moment, while it does show a decent growth rate.


Dividend Valuation Growth Profitability Health

6

1. Profitability

1.1 Basic Checks

In the past year NDAQ was profitable.
NDAQ had a positive operating cash flow in the past year.
NDAQ had positive earnings in each of the past 5 years.
NDAQ had a positive operating cash flow in each of the past 5 years.
NDAQ Yearly Net Income VS EBIT VS OCF VS FCFNDAQ Yearly Net Income VS EBIT VS OCF VS FCFYearly Net Income VS EBIT VS OCF VS FCF 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 500M 1B 1.5B

1.2 Ratios

NDAQ has a better Return On Assets (4.17%) than 60.43% of its industry peers.
NDAQ has a better Return On Equity (11.07%) than 61.30% of its industry peers.
Looking at the Return On Invested Capital, with a value of 6.99%, NDAQ is in the better half of the industry, outperforming 78.26% of the companies in the same industry.
The Average Return On Invested Capital over the past 3 years for NDAQ is in line with the industry average of 7.27%.
Industry RankSector Rank
ROA 4.17%
ROE 11.07%
ROIC 6.99%
ROA(3y)4.12%
ROA(5y)4.69%
ROE(3y)12.69%
ROE(5y)14.23%
ROIC(3y)7.46%
ROIC(5y)7.97%
NDAQ Yearly ROA, ROE, ROICNDAQ Yearly ROA, ROE, ROICYearly ROA, ROE, ROIC 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 5 10 15

1.3 Margins

Looking at the Profit Margin, with a value of 16.36%, NDAQ is in line with its industry, outperforming 53.04% of the companies in the same industry.
In the last couple of years the Profit Margin of NDAQ has declined.
Looking at the Operating Margin, with a value of 26.63%, NDAQ is in line with its industry, outperforming 48.70% of the companies in the same industry.
NDAQ's Operating Margin has been stable in the last couple of years.
NDAQ has a better Gross Margin (61.03%) than 69.13% of its industry peers.
In the last couple of years the Gross Margin of NDAQ has remained more or less at the same level.
Industry RankSector Rank
OM 26.63%
PM (TTM) 16.36%
GM 61.03%
OM growth 3Y-0.88%
OM growth 5Y0.46%
PM growth 3Y-9.2%
PM growth 5Y-3.63%
GM growth 3Y2.64%
GM growth 5Y1.1%
NDAQ Yearly Profit, Operating, Gross MarginsNDAQ Yearly Profit, Operating, Gross MarginsYearly Profit, Operating, Gross Margins 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 20 40 60

4

2. Health

2.1 Basic Checks

NDAQ has about the same amout of shares outstanding than it did 1 year ago.
The number of shares outstanding for NDAQ has been increased compared to 5 years ago.
Compared to 1 year ago, NDAQ has an improved debt to assets ratio.
NDAQ Yearly Shares OutstandingNDAQ Yearly Shares OutstandingYearly Shares Outstanding 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 100M 200M 300M 400M 500M
NDAQ Yearly Total Debt VS Total AssetsNDAQ Yearly Total Debt VS Total AssetsYearly Total Debt VS Total Assets 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 10B 20B 30B

2.2 Solvency

An Altman-Z score of 2.33 indicates that NDAQ is not a great score, but indicates only limited risk for bankruptcy at the moment.
NDAQ has a Altman-Z score of 2.33. This is in the better half of the industry: NDAQ outperforms 73.91% of its industry peers.
NDAQ has a debt to FCF ratio of 5.03. This is a neutral value as NDAQ would need 5.03 years to pay back of all of its debts.
NDAQ has a better Debt to FCF ratio (5.03) than 63.48% of its industry peers.
NDAQ has a Debt/Equity ratio of 0.77. This is a neutral value indicating NDAQ is somewhat dependend on debt financing.
With a decent Debt to Equity ratio value of 0.77, NDAQ is doing good in the industry, outperforming 62.17% of the companies in the same industry.
Industry RankSector Rank
Debt/Equity 0.77
Debt/FCF 5.03
Altman-Z 2.33
ROIC/WACCN/A
WACCN/A
NDAQ Yearly LT Debt VS Equity VS FCFNDAQ Yearly LT Debt VS Equity VS FCFYearly LT Debt VS Equity VS FCF 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2B 4B 6B 8B 10B

2.3 Liquidity

NDAQ has a Current Ratio of 0.98. This is a bad value and indicates that NDAQ is not financially healthy enough and could expect problems in meeting its short term obligations.
Looking at the Current ratio, with a value of 0.98, NDAQ is in line with its industry, outperforming 42.61% of the companies in the same industry.
A Quick Ratio of 0.98 indicates that NDAQ may have some problems paying its short term obligations.
With a Quick ratio value of 0.98, NDAQ perfoms like the industry average, outperforming 46.52% of the companies in the same industry.
Industry RankSector Rank
Current Ratio 0.98
Quick Ratio 0.98
NDAQ Yearly Current Assets VS Current LiabilitesNDAQ Yearly Current Assets VS Current LiabilitesYearly Current Assets VS Current Liabilites 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2B 4B 6B 8B

5

3. Growth

3.1 Past

NDAQ shows a small growth in Earnings Per Share. In the last year, the EPS has grown by 7.58%.
NDAQ shows quite a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 11.09% yearly.
The Revenue has grown by 25.93% in the past year. This is a very strong growth!
NDAQ shows quite a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 11.67% yearly.
EPS 1Y (TTM)7.58%
EPS 3Y3.77%
EPS 5Y11.09%
EPS Q2Q%25.4%
Revenue 1Y (TTM)25.93%
Revenue growth 3Y7.93%
Revenue growth 5Y11.67%
Sales Q2Q%10.74%

3.2 Future

The Earnings Per Share is expected to grow by 10.96% on average over the next years. This is quite good.
Based on estimates for the next years, NDAQ will show a small growth in Revenue. The Revenue will grow by 6.46% on average per year.
EPS Next Y15.56%
EPS Next 2Y13.46%
EPS Next 3Y12.76%
EPS Next 5Y10.96%
Revenue Next Year7.68%
Revenue Next 2Y7.33%
Revenue Next 3Y7.46%
Revenue Next 5Y6.46%

3.3 Evolution

The EPS growth rate is stable: in the next years the growth will be about the same than in the last years.
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is decreasing.
NDAQ Yearly Revenue VS EstimatesNDAQ Yearly Revenue VS EstimatesYearly Revenue VS Estimates 2014 2016 2018 2020 2022 2024 2026 2028 2030 2032 2B 4B 6B 8B
NDAQ Yearly EPS VS EstimatesNDAQ Yearly EPS VS EstimatesYearly EPS VS Estimates 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 1 2 3 4

3

4. Valuation

4.1 Price/Earnings Ratio

The Price/Earnings ratio is 27.44, which means the current valuation is very expensive for NDAQ.
NDAQ's Price/Earnings ratio is a bit more expensive when compared to the industry. NDAQ is more expensive than 66.52% of the companies in the same industry.
Compared to an average S&P500 Price/Earnings ratio of 25.82, NDAQ is valued at the same level.
Based on the Price/Forward Earnings ratio of 22.53, the valuation of NDAQ can be described as rather expensive.
Compared to the rest of the industry, the Price/Forward Earnings ratio of NDAQ indicates a slightly more expensive valuation: NDAQ is more expensive than 61.30% of the companies listed in the same industry.
When comparing the Price/Forward Earnings ratio of NDAQ to the average of the S&P500 Index (21.76), we can say NDAQ is valued inline with the index average.
Industry RankSector Rank
PE 27.44
Fwd PE 22.53
NDAQ Price Earnings VS Forward Price EarningsNDAQ Price Earnings VS Forward Price Earnings ChartPrice Earnings - Forward Price Earnings PE FPE 5 10 15 20 25

4.2 Price Multiples

Based on the Enterprise Value to EBITDA ratio, NDAQ is valued a bit cheaper than 72.61% of the companies in the same industry.
NDAQ's Price/Free Cash Flow is on the same level as the industry average.
Industry RankSector Rank
P/FCF 25.31
EV/EBITDA 20.36
NDAQ Per share dataNDAQ EPS, Sales, OCF, FCF, BookValue per sharePer Share Data Per Share 0 10 -10 20

4.3 Compensation for Growth

The PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.
The decent profitability rating of NDAQ may justify a higher PE ratio.
NDAQ's earnings are expected to grow with 12.76% in the coming years. This may justify a more expensive valuation.
PEG (NY)1.76
PEG (5Y)2.47
EPS Next 2Y13.46%
EPS Next 3Y12.76%

5

5. Dividend

5.1 Amount

With a Yearly Dividend Yield of 1.33%, NDAQ has a reasonable but not impressive dividend return.
NDAQ's Dividend Yield is slightly below the industry average, which is at 8.12.
Compared to an average S&P500 Dividend Yield of 2.36, NDAQ's dividend is way lower than the S&P500 average.
Industry RankSector Rank
Dividend Yield 1.33%

5.2 History

On average, the dividend of NDAQ grows each year by 8.85%, which is quite nice.
NDAQ has paid a dividend for at least 10 years, which is a reliable track record.
NDAQ has not decreased their dividend for at least 10 years, which is a reliable track record.
Dividend Growth(5Y)8.85%
Div Incr Years12
Div Non Decr Years12
NDAQ Yearly Dividends per shareNDAQ Yearly Dividends per shareYearly Dividends per share 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 0.2 0.4 0.6 0.8

5.3 Sustainability

43.19% of the earnings are spent on dividend by NDAQ. This is a bit on the high side, but may be sustainable.
The dividend of NDAQ is growing, but earnings are growing more, so the dividend growth is sustainable.
DP43.19%
EPS Next 2Y13.46%
EPS Next 3Y12.76%
NDAQ Yearly Income VS Free CF VS DividendNDAQ Yearly Income VS Free CF VS DividendYearly Income VS Free CF VS Dividend 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 500M 1B 1.5B
NDAQ Dividend Payout.NDAQ Dividend Payout, showing the Payout Ratio.NDAQ Dividend Payout.PayoutRetained Earnings

NASDAQ INC

NASDAQ:NDAQ (5/23/2025, 7:18:44 PM)

After market: 81.78 0 (0%)

81.78

+0.57 (+0.7%)

Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupFinancial Services
GICS IndustryCapital Markets
Earnings (Last)04-24 2025-04-24/bmo
Earnings (Next)07-23 2025-07-23/amc
Inst Owners67.5%
Inst Owner Change2.5%
Ins Owners0.49%
Ins Owner Change0.15%
Market Cap46.95B
Analysts80
Price Target84.66 (3.52%)
Short Float %1.33%
Short Ratio1.54
Dividend
Industry RankSector Rank
Dividend Yield 1.33%
Yearly Dividend0.94
Dividend Growth(5Y)8.85%
DP43.19%
Div Incr Years12
Div Non Decr Years12
Ex-Date06-13 2025-06-13 (0.27)
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)-0.09%
Min EPS beat(2)-0.6%
Max EPS beat(2)0.42%
EPS beat(4)3
Avg EPS beat(4)2.4%
Min EPS beat(4)-0.6%
Max EPS beat(4)5.29%
EPS beat(8)5
Avg EPS beat(8)1.34%
EPS beat(12)8
Avg EPS beat(12)1.53%
EPS beat(16)11
Avg EPS beat(16)2.01%
Revenue beat(2)0
Avg Revenue beat(2)-1.72%
Min Revenue beat(2)-1.92%
Max Revenue beat(2)-1.51%
Revenue beat(4)1
Avg Revenue beat(4)-1.71%
Min Revenue beat(4)-3.94%
Max Revenue beat(4)0.52%
Revenue beat(8)2
Avg Revenue beat(8)-1%
Revenue beat(12)6
Avg Revenue beat(12)22.71%
Revenue beat(16)10
Avg Revenue beat(16)33.41%
PT rev (1m)-5.82%
PT rev (3m)-4.14%
EPS NQ rev (1m)1.23%
EPS NQ rev (3m)0.85%
EPS NY rev (1m)0.62%
EPS NY rev (3m)0.2%
Revenue NQ rev (1m)0.79%
Revenue NQ rev (3m)0.31%
Revenue NY rev (1m)0.51%
Revenue NY rev (3m)-0.02%
Valuation
Industry RankSector Rank
PE 27.44
Fwd PE 22.53
P/S 6.01
P/FCF 25.31
P/OCF 22.66
P/B 4.07
P/tB N/A
EV/EBITDA 20.36
EPS(TTM)2.98
EY3.64%
EPS(NY)3.63
Fwd EY4.44%
FCF(TTM)3.23
FCFY3.95%
OCF(TTM)3.61
OCFY4.41%
SpS13.61
BVpS20.11
TBVpS-16.48
PEG (NY)1.76
PEG (5Y)2.47
Profitability
Industry RankSector Rank
ROA 4.17%
ROE 11.07%
ROCE 9.18%
ROIC 6.99%
ROICexc 7.28%
ROICexgc 204.34%
OM 26.63%
PM (TTM) 16.36%
GM 61.03%
FCFM 23.74%
ROA(3y)4.12%
ROA(5y)4.69%
ROE(3y)12.69%
ROE(5y)14.23%
ROIC(3y)7.46%
ROIC(5y)7.97%
ROICexc(3y)7.79%
ROICexc(5y)8.72%
ROICexgc(3y)105.04%
ROICexgc(5y)113.14%
ROCE(3y)10.12%
ROCE(5y)10.74%
ROICexcg growth 3Y-7.3%
ROICexcg growth 5Y3.79%
ROICexc growth 3Y-12.6%
ROICexc growth 5Y-5.33%
OM growth 3Y-0.88%
OM growth 5Y0.46%
PM growth 3Y-9.2%
PM growth 5Y-3.63%
GM growth 3Y2.64%
GM growth 5Y1.1%
F-Score7
Asset Turnover0.25
Health
Industry RankSector Rank
Debt/Equity 0.77
Debt/FCF 5.03
Debt/EBITDA 3.31
Cap/Depr 35.34%
Cap/Sales 2.78%
Interest Coverage 5.41
Cash Conversion 76.88%
Profit Quality 145.15%
Current Ratio 0.98
Quick Ratio 0.98
Altman-Z 2.33
F-Score7
WACCN/A
ROIC/WACCN/A
Cap/Depr(3y)47.2%
Cap/Depr(5y)58.66%
Cap/Sales(3y)2.61%
Cap/Sales(5y)2.79%
Profit Quality(3y)146.14%
Profit Quality(5y)125.99%
High Growth Momentum
Growth
EPS 1Y (TTM)7.58%
EPS 3Y3.77%
EPS 5Y11.09%
EPS Q2Q%25.4%
EPS Next Y15.56%
EPS Next 2Y13.46%
EPS Next 3Y12.76%
EPS Next 5Y10.96%
Revenue 1Y (TTM)25.93%
Revenue growth 3Y7.93%
Revenue growth 5Y11.67%
Sales Q2Q%10.74%
Revenue Next Year7.68%
Revenue Next 2Y7.33%
Revenue Next 3Y7.46%
Revenue Next 5Y6.46%
EBIT growth 1Y14.4%
EBIT growth 3Y6.98%
EBIT growth 5Y12.18%
EBIT Next Year15.23%
EBIT Next 3Y10.72%
EBIT Next 5Y7.88%
FCF growth 1Y22.93%
FCF growth 3Y23.48%
FCF growth 5Y15.68%
OCF growth 1Y24.37%
OCF growth 3Y21.43%
OCF growth 5Y15.02%