Nasdaq, Inc.
Nasdaq, Inc. Fundamental Analysis
Nasdaq, Inc. (NDAQ) shows strong financial fundamentals with a PE ratio of 25.57, profit margin of 21.77%, and ROE of 15.03%. The company generates $8.2B in annual revenue with strong year-over-year growth of 22.03%.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of 72.2/100 based on profitability, valuation, growth, and balance sheet metrics. The B grade reflects solid fundamentals with room for improvement in valuation or growth.
Fundamental Health Score
We analyze NDAQ's fundamental strength across five key dimensions:
Efficiency Score
WeakNDAQ struggles to generate sufficient returns from assets.
Valuation Score
WeakNDAQ trades at a premium to fair value.
Growth Score
ModerateNDAQ shows steady but slowing expansion.
Financial Health Score
ExcellentNDAQ maintains a strong and stable balance sheet.
Profitability Score
ExcellentNDAQ achieves industry-leading margins.
Key Financial Metrics
Is NDAQ Expensive or Cheap?
P/E Ratio
NDAQ trades at 25.57 times earnings. This indicates a fair valuation.
PEG Ratio
When adjusting for growth, NDAQ's PEG of 2.50 indicates potential overvaluation.
Price to Book
The market values Nasdaq, Inc. at 3.74 times its book value. This suggests the stock is fully valued or overvalued on an asset basis.
EV/EBITDA
Enterprise value stands at 11.72 times EBITDA. This signals the market has high growth expectations.
How Well Does NDAQ Make Money?
Net Profit Margin
For every $100 in sales, Nasdaq, Inc. keeps $21.77 as profit after all expenses.
Operating Margin
Core operations generate 28.36 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $15.03 in profit for every $100 of shareholder equity.
ROA
Nasdaq, Inc. generates $5.76 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
Nasdaq, Inc. generates strong operating cash flow of $2.26B, reflecting robust business health.
Free Cash Flow
Nasdaq, Inc. generates strong free cash flow of $1.99B, providing ample flexibility for dividends, buybacks, or growth.
FCF Per Share
Each share generates $3.49 in free cash annually.
FCF Yield
NDAQ converts 4.35% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
25.57
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
2.50
vs 25 benchmark
P/B Ratio
Price to book value ratio
3.74
vs 25 benchmark
P/S Ratio
Price to sales ratio
5.57
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
0.81
vs 25 benchmark
Current Ratio
Current assets to current liabilities
1.005
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
0.15
vs 25 benchmark
ROA
Return on assets percentage
0.06
vs 25 benchmark
ROCE
Return on capital employed
0.10
vs 25 benchmark
How NDAQ Stacks Against Its Sector Peers
| Metric | NDAQ Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 25.57 | 18.73 | Worse (Expensive) |
| ROE | 15.03% | 847.00% | Weak |
| Net Margin | 21.77% | 3919.00% | Weak |
| Debt/Equity | 0.81 | 0.93 | Neutral |
| Current Ratio | 1.01 | 674.76 | Neutral |
| ROA | 5.76% | -21563.00% (disorted) | Weak |
NDAQ outperforms its industry in 0 out of 6 key metrics, but lagging in P/E Ratio.
Historical Growth Performance
5-Year Growth Trajectory
This section reviews Nasdaq, Inc.'s 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.
Revenue CAGR
49.52%
Industry Style: Value, Dividend, Cyclical
High GrowthEPS CAGR
24.16%
Industry Style: Value, Dividend, Cyclical
High GrowthFCF CAGR
73.23%
Industry Style: Value, Dividend, Cyclical
High Growth