Nasdaq (NDAQ)
Financials · $60.4B market cap · SEC CIK 0001120193
ahead of 73% of the S&P 500 · #22 of 76 in Financials
Next reports on Jan 27, 2027, after the close, with analysts expecting $1.09 in earnings per share.
52-week range $76.55 to $111.45. 1% below its 52-week high and 44% above its low.
The case for NDAQ
- 23% of revenue drops through to net profit.
- Revenue growing 12.2% year over year.
- Earnings per share up 30.4%.
- Return on equity of 17%.
- Gross margin of 63% absorbs cost shocks.
- Pays a modest 1.6% dividend.
The case against
- P/E of 29.0× is higher than 85% of Financials companies.
- Weakest against its peers: price/sales of 6.6× is higher than 84% of Financials companies.
What the score is made of
Each factor is half a curve over reported figures and half a rank among the other Financials companies (momentum is judged against fixed thresholds only), and the five are blended by weight. The score is where that blend places it in the S&P 500. It describes the last filing and the current price. It is not a forecast.
| Valuewhat you pay for the earnings and cash, against the growth you get | 42 |
|---|---|
| Growthhow fast revenue and earnings are moving, this year and over five | 59 |
| Profitabilityhow much of the revenue becomes profit, and how much of that is cash | 73 |
| Momentumhow the price has behaved lately | 82 |
| Stabilityhow violently it moves, what it owes and what it pays you | 53 |
- Its debt and cash flow are not scored, as for every company in the Financials sector: for banks, insurers and brokers, borrowing is the business.
- Each factor except momentum is half fixed thresholds, half rank among the 76 Financials companies.
The financials
Revenue growth
Is the business growing? Yes
| Last 12 months | +12.2% |
|---|---|
| Over 5 years | +8.0% a year |
| FY2025 revenue | $8.3B (+12%) |
Free cash flow
Is it generating real cash? Not meaningful for a financial company
Profit margins
Is profitability improving? Yes, improving
| Gross margin | 63% |
|---|---|
| Operating margin | 31% |
| Net margin, FY24 → FY25 → now | 15.1% → 21.6% → 22.7% |
Debt vs. cash
Is the balance sheet healthy? Not judged for a financial company
| Cash | $604M |
|---|---|
| Long-term debt | $8.6B |
| Net debt | $8.0B |
Valuation
Is the stock price reasonable? Yes, about fair
| P/E | 29.0× |
|---|---|
| Fair P/E for its growth | 25× |
| Forward P/E | 23.0× |
| EV / EBITDA | 19.5× |
At 29.0× earnings it trades close to the 25× that 10%+ a year of growth plus a 1.6% dividend would justify. It is judged on earnings alone: its book value is not what it earns on, as it would be for a bank or insurer.
The financials, five years deep
Pulled from Nasdaq's XBRL filings on SEC EDGAR. Italic rows are worked out from the others.
| FY2025 | FY2024 | FY2023 | FY2022 | FY2021 | |
|---|---|---|---|---|---|
| Revenue growth | |||||
| Revenue | $8.3B | $7.4B | $6.1B | $6.2B | $5.9B |
| Change on the year | +12% | +22% | −3% | +6% | — |
| Free cash flow | |||||
| Free cash flow | $2.0B | $1.7B | $1.5B | $1.6B | $920M |
| Of revenue | 24% | 23% | 25% | 25% | 16% |
| Profit margins | |||||
| Gross margin | 63.5% | 62.8% | 64.2% | 57.5% | 58.1% |
| Operating margin | 28.2% | 24.3% | 26.0% | 25.1% | 24.5% |
| Net margin | 21.6% | 15.1% | 17.5% | 18.1% | 20.2% |
| Debt vs. cash | |||||
| Cash | $604M | $592M | $453M | $502M | $393M |
| Long-term debt | $8.6B | $9.1B | $10.2B | $4.7B | $4.8B |
| Net cash (debt) | −$8.0B | −$8.5B | −$9.7B | −$4.2B | −$4.4B |
What Nasdaq says it does
OVER VIEW Nasdaq is a leading technology platform that powers the world’s economies. We architect the infrastructure of the world’s most modern markets, power the innovation economy, and build trust in the financial system. We empower economic opportunity by designing and deploying the technology, data, and advanced analytics that enable our clients to capture opportunities, navigate risk, and strengthen resilience. We manage, operate and provide our products and services in three business segments: Capital Access Platforms, Financial Technology and Market Services. HISTORY Nasdaq was founded in 1971 as a wholly-owned subsidiary of FINRA. Beginning in 2000, FINRA restructured and broadened ownership in Nasdaq by selling shares to FINRA members, investment companies and issuers listed on The Nasdaq Stock Market. In connection with this restructuring, FINRA fully divested its ownership of Nasdaq in 2006, and The Nasdaq Stock Market…