Nasdaq, Inc.
NDAQ
$98.22
+0.69%
Nasdaq, Inc. is a global financial services company that operates the Nasdaq stock exchange and provides market data, index licensing, and financial technology solutions, serving exchanges, brokers, and investors worldwide. As a leading exchange operator and technology provider, Nasdaq differentiates itself through its integrated platform spanning trading, listing, and regulatory compliance software, with a growing focus on anti-financial crime and capital management solutions. The current investor narrative centers on Nasdaq's transformation into a diversified technology company, driven by its financial technology segment and recent innovations such as tokenized settlement pilots and faster IPO inclusion rules, which are expected to attract high-profile listings and enhance long-term growth prospects.…
NDAQ
Nasdaq, Inc.
$98.22
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Investment Opinion: Should I buy NDAQ Today?
We rate Nasdaq as a Buy, with a thesis that its diversified business model, strong margins, and attractive PEG ratio offer a favorable risk/reward. The analyst consensus is Buy with an average target of $109.80, implying 11.8% upside, and the low PEG of 0.51 suggests the market is undervaluing its growth potential.
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NDAQ 12-Month Price Forecast
The AI assessment leans bullish due to the attractive PEG ratio and strong profitability, but confidence is medium because revenue growth is currently modest. The key is whether Nasdaq can accelerate growth through its fintech and IPO initiatives. If revenue growth exceeds 5% in the next two quarters, the stock is likely to re-rate higher. Conversely, if growth remains below 2%, the premium valuation could compress. Monitoring quarterly revenue growth and fintech segment performance will be critical.
Wall Street consensus
Most Wall Street analysts maintain a constructive view on Nasdaq, Inc.'s 12-month outlook, with a consensus price target around $109.80 and implied upside of +11.8% versus the current price.
Average Target
$109.80
0 analysts
Implied Upside
+11.8%
vs. current price
Analyst Count
—
covering this stock
Price Range
$84 - $135
Analyst target range
The wide target range indicates significant uncertainty about Nasdaq's future growth, with the high target likely assuming successful fintech expansion and new IPO listings, while the low target may price in margin compression or competitive pressures. Recent ratings from major firms have been predominantly positive, with Morgan Stanley, Barclays, and TD Cowen maintaining Overweight/Buy ratings, and no downgrades in the past six months, suggesting a bullish sentiment. However, the presence of a Market Perform rating from KBW indicates some caution, and the stock's beta of 0.97 suggests it is slightly less volatile than the market, which may appeal to risk-averse investors.
Bulls vs Bears: NDAQ Investment Factors
Nasdaq presents a mixed picture: strong profitability, attractive valuation on a PEG basis, and positive analyst sentiment are countered by modest revenue growth, a premium P/E, and high leverage. The bull case rests on successful execution of fintech expansion and new IPO listings, while the bear case hinges on growth remaining sluggish and valuation compressing. Currently, the evidence slightly favors the bull case due to the low PEG ratio and analyst upside, but the key tension is whether Nasdaq can accelerate revenue growth to justify its premium multiple. If growth remains below 5%, the stock is likely to underperform; if it can achieve double-digit growth through its technology initiatives, the stock has significant upside.
Bullish
- Strong Profitability and Margins: Nasdaq's operating margin stands at 28.4% and net margin at 21.8%, significantly above the industry average, reflecting efficient operations and a high-margin business model. This profitability supports continued investment in growth initiatives and shareholder returns.
- Attractive PEG Ratio Indicates Undervaluation: With a PEG ratio of 0.51, the stock is trading at a discount to its expected earnings growth, suggesting the market has not fully priced in future growth prospects. This is particularly compelling given the forward P/E of 21.0x, which implies substantial earnings acceleration.
- Analyst Consensus is Buy with Upside: The average analyst target price is $109.80, representing a 11.8% upside from the current price of $98.22. With 15 analysts covering, the consensus rating is 'Buy', and recent ratings from major firms like Morgan Stanley and Barclays are positive, indicating strong institutional support.
- Diversified Revenue Streams: Revenue is well-diversified across Market Services (49%), Capital Access Platforms (26%), and Market Technology (24%), reducing reliance on any single segment. This balance provides stability and multiple growth drivers, including the fast-growing financial technology segment.
Bearish
- Modest Revenue Growth: Q1 2026 revenue grew only 2.25% YoY, which is sluggish for a company with a PEG ratio below 1. This slow growth may not justify the premium valuation, especially if the market expects faster expansion from a tech-driven transformation.
- Premium Valuation vs. Peers: The trailing P/E of 31.0x is 41% above the industry average of 22x, indicating the market is paying a premium for Nasdaq's perceived quality. If growth fails to accelerate, the stock could face multiple compression, leading to underperformance.
- High Debt Levels: With a debt-to-equity ratio of 0.81, Nasdaq carries significant leverage, which increases financial risk, especially in a rising interest rate environment. Interest expenses of $87 million in Q1 2026 could pressure margins if rates remain elevated.
- Underperformance vs. Market: Over the past year, Nasdaq's stock gained only 4.5% compared to the S&P 500's 20.5%, underperforming by 16 percentage points. This relative weakness suggests investor skepticism about its growth narrative and could persist if the market continues to favor other sectors.
NDAQ Technical Analysis
Nasdaq's stock is in a clear uptrend, with the price at $98.22 as of August 21, 2026, up 4.53% over the past year and 19.97% over the past six months. The stock is trading at 96.5% of its 52-week range (between $76.55 and $101.79), indicating strong momentum and proximity to its highs, which suggests bullish sentiment but also potential overextension. The 52-week low of $76.55 was set in late June 2026, and the subsequent recovery has been robust, with the price now just 3.5% below the 52-week high of $101.79.
Beta
0.97
0.97x market volatility
Max Drawdown
-23.9%
Largest decline past year
52-Week Range
$77-$102
Price range past year
Annual Return
+4.5%
Cumulative gain past year
| Period | NDAQ Return | S&P 500 |
|---|---|---|
| 1m | +8.1% | +3.6% |
| 3m | +7.9% | +2.7% |
| 6m | +20.0% | +11.4% |
| 1y | +4.5% | +18.7% |
| ytd | +1.6% | +12.3% |
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NDAQ Fundamental Analysis
Nasdaq's revenue has shown steady growth, with Q1 2026 revenue of $2.137 billion, up 2.25% year-over-year, and a sequential increase from Q4 2025's $2.08 billion. The company's revenue mix is diversified, with Market Services contributing $1.047 billion, Capital Access Platforms $565 million, and Market Technology $517 million, reflecting a balanced portfolio. However, the YoY growth rate of 2.25% is modest, indicating a mature business with slower expansion compared to high-growth tech peers, but the company is investing in fintech to accelerate growth.
Quarterly Revenue
$2.1B
2026-03
Revenue YoY Growth
+2.3%
YoY Comparison
Gross Margin
65.8%
Latest Quarter
Free Cash Flow
$2.0B
Last 12 Months
Revenue & Net Income Trends (2 Years)
Revenue Breakdown
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Valuation Analysis: Is NDAQ Overvalued?
Given that Nasdaq's net income is positive, the trailing P/E ratio is the primary valuation metric, currently at 31.03x, while the forward P/E is 21.00x, implying the market expects significant earnings growth. The PEG ratio of 0.51 suggests the stock is undervalued relative to its growth rate, which is attractive. Compared to the industry average P/E of 22x (as per available data), Nasdaq trades at a 41% premium, which may be justified by its higher operating margin of 28.4% and net margin of 21.8%, indicating superior profitability.
PE
31.0x
Latest Quarter
vs. Historical
Mid-Range
5-Year PE Range 20x~40x
vs. Industry Avg
N/A
Industry PE ~N/A*
EV/EBITDA
20.6x
Enterprise Value Multiple
Investment Risk Disclosure
Financial risks are notable, with a debt-to-equity ratio of 0.81 indicating substantial leverage. Interest expenses of $87 million in Q1 2026 could rise if rates stay high, pressuring net income. The current ratio of 1.0 suggests tight liquidity, and while free cash flow is positive at $2.0 billion TTM, the company's reliance on acquisitions (like Adenza) for growth increases integration risk. Revenue growth of only 2.25% YoY is a concern, as it may not be sufficient to cover debt costs and sustain the premium valuation.