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Nasdaq

Nasdaq:NDAQ
Snowflake Description

Solid track record with adequate balance sheet.

The Snowflake is generated from 30 checks in 5 different areas, read more below.
NDAQ
Nasdaq
$17B
Market Cap
  1. Home
  2. US
  3. Diversified Financials
Company description

Nasdaq, Inc. operates as a technology company that serves capital markets and other industries worldwide. The last earnings update was 44 days ago. More info.


Add to Portfolio Compare Print
  • Nasdaq has significant price volatility in the past 3 months.
NDAQ Share Price and Events
7 Day Returns
10.8%
NasdaqGS:NDAQ
5.7%
US Capital Markets
2.4%
US Market
1 Year Returns
19.6%
NasdaqGS:NDAQ
-8.3%
US Capital Markets
-10%
US Market
NDAQ Shareholder Return
  7 Day 30 Day 90 Day 1 Year 3 Year 5 Year
Nasdaq (NDAQ) 10.8% -0.5% -2.5% 19.6% 52.9% 109.1%
US Capital Markets 5.7% -9% -20.5% -8.3% 8.4% 26.6%
US Market 2.4% -11% -19.4% -10% 9.6% 21.1%
1 Year Return vs Industry and Market
  • NDAQ outperformed the Capital Markets industry which returned -8.3% over the past year.
  • NDAQ outperformed the Market in United States of America which returned -10% over the past year.
Price Volatility
NDAQ
Industry
5yr Volatility vs Market

NDAQ Value

 Is Nasdaq undervalued based on future cash flows and its price relative to the stock market?

Value is all about what a company is worth versus what price it is available for. If you went into a grocery store and all the bananas were on sale at half price, they could be considered undervalued.
INTRINSIC VALUE BASED ON FUTURE CASH FLOWS
Here we compare the current share price of Nasdaq to its discounted cash flow analysis.value.

The discounted cash flow value is simply looking at what the company is worth today, based on estimates of how much money it is expected to make in the future.
Raw Data

Below are the data sources, inputs and calculation used to determine the intrinsic value for Nasdaq.

NasdaqGS:NDAQ Discounted Cash Flow Data Sources
Data Point Source Value
Valuation Model Excess Returns Model
Stable EPS Weighted future Return on Equity estimates from 7 analysts.
= Stable Book Value * Return on Equity
= $37.94 * 16.8%
$6.37
Book Value of Equity per Share Weighted future Book Value estimates from 3 analysts. $37.94
Discount Rate (Cost of Equity) See below 6.6%
Perpetual Growth Rate 10-Year US Government Bond Rate 1.7%

An important part of a discounted cash flow is the discount rate, below we explain how it has been calculated.

Calculation of Discount Rate/ Cost of Equity for NasdaqGS:NDAQ
Data Point Calculation/ Source Result
Risk-Free Rate 10-Year US Govt Bond Rate 1.7%
Equity Risk Premium S&P Global 5.4%
Capital Markets Unlevered Beta Simply Wall St/ S&P Global 0.71
Re-levered Beta = Unlevered beta (1 + (1- tax rate) (Debt/Equity))
= 0.707 (1 + (1- 21%) (21.99%))
0.886
Levered Beta Levered Beta limited to 0.8 to 2.0
(practical range for a stable firm)
0.89
Discount Rate/ Cost of Equity = Cost of Equity = Risk Free Rate + (Levered Beta * Equity Risk Premium)
= 1.74% + (0.886 * 5.44%)
6.56%

Discounted Cash Flow Calculation for NasdaqGS:NDAQ using Excess Returns Model Model

The calculations below outline how an intrinsic value for Nasdaq is arrived at using the Excess Return Model. This approach is used for finance firms where free cash flow is difficult to estimate.

In the Excess Return Model the value of a firm can be written as the sum of capital invested currently in the firm and the present value of excess returns that the firm expects to make in the future.

The model is sensitive to the Return on Equity of the company versus the Cost of Equity, how these are calculated is detailed below the main calculation.

Note the calculations below are per share.

See our documentation to learn about this calculation.

NasdaqGS:NDAQ Value of Excess Returns
Calculation Result
Excess Returns = (Stable Return on equity – Cost of equity) (Book Value of Equity per share)
= (16.8% – 6.56%) * $37.94)
$3.88
Terminal Value of Excess Returns = Excess Returns / (Cost of Equity - Expected Growth Rate)
= $3.88 / (6.56% - 1.74%)
$80.41
Value of Equity = Book Value per share + Terminal Value of Excess Returns
= $37.94 + $80.41
$118.35
NasdaqGS:NDAQ Discount to Share Price
Calculation Result
Value per share (USD) From above. $118.35
Current discount Discount to share price of $104.13
= -1 x ($104.13 - $118.35) / $118.35
12%

Learn more about our DCF calculations in Simply Wall St’s analysis model .

Current Discount
Amount off the current price Nasdaq is available for.
Intrinsic value
12%
Share price is $104.13 vs Future cash flow value of $118.35
Current Discount Checks
For Nasdaq to be considered undervalued it must be available for at least 20% below the current price. Less than 40% is even better.
  • Nasdaq's share price is below the future cash flow value, but not at a moderate discount (< 20%).
  • Nasdaq's share price is below the future cash flow value, but not at a substantial discount (< 40%).
PRICE RELATIVE TO MARKET
We can also value a company based on what the stock market is willing to pay for it. This is similar to the price of fruit (e.g. Mangoes or Avocados) increasing when they are out of season, or how much your home is worth.

The amount the stock market is willing to pay for Nasdaq's earnings, growth and assets is considered below, and whether this is a fair price.
Price based on past earnings
Are Nasdaq's earnings available for a low price, and how does this compare to other companies in the same industry?
Raw Data
NasdaqGS:NDAQ PE (Price to Earnings) Ratio Data Sources
Data Point Source Value
Earnings Per Share * Company Filings (2019-12-31) in USD $4.69
NasdaqGS:NDAQ Share Price ** NasdaqGS (2020-04-08) in USD $104.13
United States of America Capital Markets Industry PE Ratio Median Figure of 92 Publicly-Listed Capital Markets Companies 33.4x
United States of America Market PE Ratio Median Figure of 2,948 Publicly-Listed Companies 12.95x

* Trailing twelve months (TTM) annual GAAP earnings per share excluding extraordinary items.

** Primary Listing of Nasdaq.

NasdaqGS:NDAQ PE (Price to Earnings) Ratio Calculation
Calculation Outcome
PE Ratio

= NasdaqGS:NDAQ Share Price ÷ EPS (both in USD)

= 104.13 ÷ 4.69

22.19x

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Nasdaq is good value based on earnings compared to the US Capital Markets industry average.
  • Nasdaq is overvalued based on earnings compared to the United States of America market.
Price based on expected Growth
Does Nasdaq's expected growth come at a high price?
Raw Data
NasdaqGS:NDAQ PEG (Price to Earnings to Growth) Ratio Data Sources
Data Point Source Value
PE Ratio See PE Ratio Section 22.19x
Net Income Annual Growth Rate See Future Growth Section.
Line of Best Fit* through Consensus Estimate Earnings of 16 Analysts
6.2%per year
United States of America Capital Markets Industry PEG Ratio Median Figure of 36 Publicly-Listed Capital Markets Companies 1.87x
United States of America Market PEG Ratio Median Figure of 2,010 Publicly-Listed Companies 0.92x

*Line of best fit is calculated by linear regression .

NasdaqGS:NDAQ PEG (Price to Earnings to Growth) Ratio Calculation
Calculation Outcome
PEG Ratio

= PE Ratio ÷ Net Income Annual Growth Rate

= 22.19x ÷ 6.2%

3.55x

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Nasdaq is poor value based on expected growth next year.
Price based on value of assets
What value do investors place on Nasdaq's assets?
Raw Data
NasdaqGS:NDAQ PB (Price to Book) Ratio Data Sources
Data Point Source Value
Book Value per Share Company Filings (2019-12-31) in USD $34.16
NasdaqGS:NDAQ Share Price * NasdaqGS (2020-04-08) in USD $104.13
United States of America Capital Markets Industry PB Ratio Median Figure of 192 Publicly-Listed Capital Markets Companies 8.59x
United States of America Market PB Ratio Median Figure of 5,162 Publicly-Listed Companies 1.26x
NasdaqGS:NDAQ PB (Price to Book) Ratio Calculation
Calculation Outcome
PB Ratio

= NasdaqGS:NDAQ Share Price ÷ Book Value per Share (both in USD)

= 104.13 ÷ 34.16

3.05x

* Primary Listing of Nasdaq.

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Nasdaq is good value based on assets compared to the US Capital Markets industry average.
X
Value checks
We assess Nasdaq's value by looking at:
  1. Is the discounted cash flow value less than 20%, or 40% of the share price? (2 checks) ( Click here or on bar chart for details of DCF calculation. )
  2. Is the PE ratio less than the market average, and/ or less than the Capital Markets industry average (and greater than 0)? (2 checks)
  3. Is the PEG ratio within a reasonable range (0 to 1)? (1 check)
  4. Is the PB ratio less than the Capital Markets industry average (and greater than 0)? (1 check)
  5. Nasdaq has a total score of 2/6, see the detailed checks below.

    Note: We use GAAP Earnings per Share in all our calculations including PE and PEG Ratio.

    Full details on the Value part of the Simply Wall St company analysis model.

NDAQ Future Performance

 How is Nasdaq expected to perform in the next 1 to 3 years based on estimates from 16 analysts?

The future performance of a company is measured in the same way as past performance, by looking at estimated growth and how much profit it is expected to make.

Future estimates come from professional analysts. Just like forecasting the weather, they don’t always get it right!
Annual Growth Rate
6.2%
Expected annual growth in earnings.
Earnings growth vs Low Risk Savings
Is Nasdaq expected to grow at an attractive rate?
  • Nasdaq's earnings growth is expected to exceed the low risk savings rate of 1.7%.
Growth vs Market Checks
  • Nasdaq's earnings growth is positive but not above the United States of America market average.
  • Nasdaq's revenues are expected to decrease over the next 1-3 years, this is below the United States of America market average.
Annual Growth Rates Comparison
Raw Data
NasdaqGS:NDAQ Future Growth Rates Data Sources
Data Point Source Value (per year)
NasdaqGS:NDAQ Future Earnings Growth Rate Line of Best Fit* through Consensus Estimate Earnings of 16 Analysts 6.2%
NasdaqGS:NDAQ Future Revenue Growth Rate Line of Best Fit* through Consensus Estimate Revenue of 16 Analysts -12.7%
United States of America Capital Markets Industry Earnings Growth Rate Market Cap Weighted Average 4.9%
United States of America Capital Markets Industry Revenue Growth Rate Market Cap Weighted Average 2.1%
United States of America Market Earnings Growth Rate Market Cap Weighted Average 13.3%
United States of America Market Revenue Growth Rate Market Cap Weighted Average 7%

*Line of best fit is calculated by linear regression .

Industry and Market average data is calculated daily.

Learn more about our growth rate calculations in Simply Wall St’s analysis model.

Analysts growth expectations
Raw Data
NasdaqGS:NDAQ Analysts Growth Expectations Data Sources
Data Point Source Value
Past Financials Company Filings (3 months ago) See Below
Future Estimates Average of up to 16 Analyst Estimates (S&P Global) See Below
All numbers in USD Millions and using Trailing twelve months (TTM) annual period rather than quarterly.
NasdaqGS:NDAQ Future Estimates Data
Date (Data in USD Millions) Revenue Cash Flow Net Income * Avg. No. Analysts
2024-12-31 3,167 1
2023-12-31 3,025 1
2022-12-31 2,817 1,279 924 5
2021-12-31 2,745 1,099 906 15
2020-12-31 2,657 1,228 864 16
2020-04-09
NasdaqGS:NDAQ Past Financials Data
Date (Data in USD Millions) Revenue Cash Flow Net Income *
2019-12-31 4,262 963 774
2019-09-30 4,333 984 527
2019-06-30 4,199 897 540
2019-03-31 4,165 990 528
2018-12-31 4,277 1,028 458
2018-09-30 4,160 968 748
2018-06-30 4,163 1,049 754
2018-03-31 4,130 1,040 738
2017-12-31 3,948 909 729
2017-09-30 3,902 893 258
2017-06-30 3,865 861 220
2017-03-31 3,769 765 144

*GAAP earnings excluding extraordinary items.

Super high growth metrics
High Growth Checks
  • Nasdaq's earnings are expected to grow by 6.2% yearly, however this is not considered high growth (20% yearly).
  • Nasdaq's revenue is expected to decrease over the next 1-3 years, this is not considered high growth.
Past and Future Earnings per Share
The accuracy of the analysts who estimate the future performance data can be gauged below. We look back 3 years and see if they were any good at predicting what actually occurred. We also show the highest and lowest estimates looking forward to see if there is a wide range.
Raw Data
NasdaqGS:NDAQ Past and Future Earnings per Share
Data Point Source Value
Past Financials Company Filings (3 months ago) See Below
Future Estimates Average of up to 16 Analyst Estimates (S&P Global) See Below

All data from Nasdaq Company Filings, last reported 3 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

NasdaqGS:NDAQ Future Estimates Data
Date (Data in USD Millions) EPS * EPS High Estimate EPS Low Estimate Avg. No. Analysts
2024-12-31 6.99 6.99 6.99 1.00
2023-12-31 6.35 6.35 6.35 1.00
2022-12-31 5.84 5.86 5.81 3.00
2021-12-31 5.44 5.83 5.21 10.00
2020-12-31 5.10 5.46 4.82 10.00
2020-04-09
NasdaqGS:NDAQ Past Financials Data
Date (Data in USD Millions) EPS *
2019-12-31 4.69
2019-09-30 3.19
2019-06-30 3.27
2019-03-31 3.20
2018-12-31 2.77
2018-09-30 4.51
2018-06-30 4.53
2018-03-31 4.43
2017-12-31 4.38
2017-09-30 1.55
2017-06-30 1.33
2017-03-31 0.87

*GAAP earnings excluding extraordinary items.

Performance in 3 years
In the same way as past performance we look at the future estimated return (profit) compared to the available funds. We do this looking forward 3 years.
  • Nasdaq is not expected to efficiently use shareholders’ funds in the future (Return on Equity less than 20%).
X
Future performance checks
We assess Nasdaq's future performance by looking at:
  1. Is the annual earnings growth rate expected to beat the low risk savings rate, plus a premium to keep pace with inflation?
  2. Is the annual earnings growth rate expected to beat the average growth rate in earnings of the United States of America market? (1 check)
  3. Is the annual revenue growth rate expected to beat the average growth rate in revenue of the United States of America market? (1 check)
  4. Is the annual earnings growth rate expected to be above 20%? (1 check)
  5. Is the annual revenue growth rate expected to be above 20%? (1 check)
  6. Is the Return on Equity in 3 years expected to be over 20%? (1 check)
Some of the above checks will fail if the company is expected to be loss making in the relevant year.
Nasdaq has a total score of 1/6, see the detailed checks below.

Note 1: We use GAAP Net Income Excluding Exceptional Items for our Earnings in all our calculations.

Full details on the Future part of the Simply Wall St company analysis model.

NDAQ Past Performance

  How has Nasdaq performed over the past 5 years?

The past performance of a company can be measured by how much growth it has experienced and how much profit it makes relative to the funds and assets it has available.
Past earnings growth
Below we compare Nasdaq's growth in the last year to its industry (Capital Markets).
Past Earnings growth analysis
We also check if the company has grown in the past 5 years, and whether it has maintained that growth in the year.
  • Nasdaq's year on year earnings growth rate has been positive over the past 5 years.
  • Nasdaq's 1-year earnings growth exceeds its 5-year average (69% vs 13.7%)
  • Nasdaq's earnings growth has exceeded the US Capital Markets industry average in the past year (69% vs 9.7%).
Earnings and Revenue History
Nasdaq's revenue and profit over the past 5 years is shown below, any years where they have experienced a loss will show up in red.
Raw Data

All data from Nasdaq Company Filings, last reported 3 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

NasdaqGS:NDAQ Past Revenue, Cash Flow and Net Income Data
Date (Data in USD Millions) Revenue Net Income * G+A Expenses R&D Expenses
2019-12-31 4,262.00 774.00 1,208.00
2019-09-30 4,333.00 527.00 1,221.00
2019-06-30 4,199.00 540.00 1,218.00
2019-03-31 4,165.00 528.00 1,208.00
2018-12-31 4,277.00 458.00 1,235.00
2018-09-30 4,160.00 748.00 1,215.00
2018-06-30 4,163.00 754.00 1,209.00
2018-03-31 4,130.00 738.00 1,201.00
2017-12-31 3,948.00 729.00 1,155.00
2017-09-30 3,902.00 258.00 1,152.00
2017-06-30 3,865.00 220.00 1,157.00
2017-03-31 3,769.00 144.00 1,140.00
2016-12-31 3,704.00 106.00 1,118.00
2016-09-30 3,597.00 481.00 1,073.00
2016-06-30 3,540.00 488.00 1,032.00
2016-03-31 3,450.00 551.00 1,017.00
2015-12-31 3,403.00 428.00 1,023.00
2015-09-30 3,458.00 366.00 1,016.00
2015-06-30 3,404.00 351.00 1,016.00
2015-03-31 3,460.00 320.00 1,037.00
2014-12-31 3,500.00 414.00 1,066.00
2014-09-30 3,429.00 469.00 1,054.00
2014-06-30 3,416.00 460.00 1,076.00
2014-03-31 3,365.00 446.00 1,027.00
2013-12-31 3,211.00 385.00 977.00
2013-09-30 3,117.00 330.00 907.00
2013-06-30 3,058.00 304.00 837.00

*GAAP earnings excluding extraordinary items.

Performance last year
We want to ensure a company is making the most of what it has available. This is done by comparing the return (profit) to a company's available funds, assets and capital.
  • Nasdaq has not efficiently used shareholders’ funds last year (Return on Equity less than 20%).
  • Nasdaq used its assets more efficiently than the US Capital Markets industry average last year based on Return on Assets.
  • Nasdaq has improved its use of capital last year versus 3 years ago (Return on Capital Employed).
X
Past performance checks
We assess Nasdaq's performance over the past 5 years by checking for:
  1. Has earnings increased in past 5 years? (1 check)
  2. Has the earnings growth in the last year exceeded that of the Capital Markets industry? (1 check)
  3. Is the recent earnings growth over the last year higher than the average annual growth over the past 5 years? (1 check)
  4. Is the Return on Equity (ROE) higher than 20%? (1 check)
  5. Is the Return on Assets (ROA) above industry average? (1 check)
  6. Has the Return on Capital Employed (ROCE) increased from 3 years ago? (1 check)
The above checks will fail if the company has reported a loss in the most recent earnings report. Some checks require at least 3 or 5 years worth of data.
Nasdaq has a total score of 5/6, see the detailed checks below.

Note: We use GAAP Net Income excluding extraordinary items in all our calculations.

Full details on the Past part of the Simply Wall St company analysis model.

NDAQ Health

 How is Nasdaq's financial health and their level of debt?

A company's financial position is much like your own financial position, it includes everything you own (assets) and owe (liabilities).

The boxes below represent the relative size of what makes up Nasdaq's finances.

The net worth of a company is the difference between its assets and liabilities.
Net Worth
  • Nasdaq is able to meet its short term (1 year) commitments with its holdings of cash and other short term assets.
  • Nasdaq's cash and other short term assets cover its long term commitments.
Balance sheet
This treemap shows a more detailed breakdown of Nasdaq's finances. If any of them are yellow this indicates they may be out of proportion and red means they relate to one of the checks below.
Assets
Liabilities and shares
The 'shares' portion represents any funds contributed by the owners (shareholders) and any profits.
  • Low level of unsold assets.
  • Debt is covered by short term assets, assets are 1.3x debt.
Historical Debt
Nearly all companies have debt. Debt in itself isn’t bad, however if the debt is too high, or the company can’t afford to pay the interest on its debts this may have impacts in the future.

The graphic below shows equity (available funds) and debt, we ideally want to see the red area (debt) decreasing.

If there is any debt we look at the companies capability to repay it, and whether the level has increased over the past 5 years.
Raw Data

All data from Nasdaq Company Filings, last reported 3 months ago.

NasdaqGS:NDAQ Past Debt and Equity Data
Date (Data in USD Millions) Total Equity Total Debt Cash & Short Term Investments
2019-12-31 5,639.00 3,387.00 454.00
2019-09-30 5,327.00 3,478.00 339.00
2019-06-30 5,551.00 3,489.00 412.00
2019-03-31 5,494.00 3,567.00 498.00
2018-12-31 5,449.00 3,831.00 647.00
2018-09-30 5,602.00 3,880.00 352.00
2018-06-30 5,542.00 3,847.00 482.00
2018-03-31 5,725.00 4,115.00 472.00
2017-12-31 5,880.00 4,207.00 452.00
2017-09-30 5,735.00 3,743.00 578.00
2017-06-30 5,576.00 3,552.00 496.00
2017-03-31 5,352.00 3,621.00 452.00
2016-12-31 5,430.00 3,603.00 476.00
2016-09-30 5,754.00 3,709.00 312.00
2016-06-30 5,717.00 3,731.00 430.00
2016-03-31 5,697.00 2,565.00 415.00
2015-12-31 5,609.00 2,364.00 336.00
2015-09-30 5,546.00 2,435.00 310.00
2015-06-30 5,716.00 2,281.00 430.00
2015-03-31 5,545.00 2,306.00 358.00
2014-12-31 5,794.00 2,297.00 442.00
2014-09-30 6,118.00 2,345.00 299.00
2014-06-30 6,207.00 2,408.00 345.00
2014-03-31 6,240.00 2,514.00 404.00
2013-12-31 6,184.00 2,634.00 420.00
2013-09-30 6,056.00 2,718.00 388.00
2013-06-30 5,863.00 2,785.00 435.00
  • Nasdaq's level of debt (60.1%) compared to net worth is high (greater than 40%).
  • The level of debt compared to net worth has increased over the past 5 years (39.7% vs 60.1% today).
  • Debt is well covered by operating cash flow (28.4%, greater than 20% of total debt).
  • Interest payments on debt are well covered by earnings (EBIT is 10x coverage).
X
Financial health checks
We assess Nasdaq's financial health by checking for:
  1. Are short term assets greater than short term liabilities? (1 check)
  2. Are short term assets greater than long term liabilities? (1 check)
  3. Has the debt to equity ratio increased in the past 5 years? (1 check)
  4. Is the debt to equity ratio over 40%? (1 check)
  5. Is the debt covered by operating cash flow? (1 check)
  6. Are earnings greater than 5x the interest on debt (if company pays interest at all)? (1 check)
  7. Nasdaq has a total score of 4/6, see the detailed checks below.
For companies that are loss making and have been so on average in the past we replace the last 2 checks with:
  1. Does cash and short term investments cover stable operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)
  2. Does cash and short term investments cover growing operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)


Full details on the Health part of the Simply Wall St company analysis model.

NDAQ Dividends

 What is Nasdaq's current dividend yield, its reliability and sustainability?

Dividends are regular cash payments to you from the company, similar to a bank paying you interest on a savings account.
Annual Dividend Income
Dividend payments
1.81%
Current annual income from Nasdaq dividends. Estimated to be 2% next year.
If you bought $2,000 of Nasdaq shares you are expected to receive $36 in your first year as a dividend.
Dividend Amount
Here we look how much dividend is being paid, if any. Is it above what you can get in a savings account? It is up there with the best dividend paying companies?
  • Nasdaq's pays a lower dividend yield than the bottom 25% of dividend payers in United States of America (1.93%).
  • Nasdaq's dividend is below the markets top 25% of dividend payers in United States of America (5.46%).
Annualized Historical and Future Dividends
It is important to see if the dividend for a company is stable, and not wildly increasing/decreasing each year. This graph shows you the historical rate to count toward your assessment of the stock.

We also check to see if the dividend has increased in the past 10 years.
Raw Data
NasdaqGS:NDAQ Annualized Past and Future Dividends
Data Point Source Value
Past Annualized Dividend Yield S&P Global Market Data See Below
Past Dividends per Share Company Filings/ Annualized Dividend Payments See Below
Future Dividends per Share Estimates Average of up to 16 Analyst Estimates (S&P Global) See Below
United States of America Capital Markets Industry Average Dividend Yield Market Cap Weighted Average of 44 Stocks 2.4%
United States of America Market Average Dividend Yield Market Cap Weighted Average of 1935 Stocks 2.9%
United States of America Minimum Threshold Dividend Yield 10th Percentile 1.1%
United States of America Bottom 25% Dividend Yield 25th Percentile 1.9%
United States of America Top 25% Dividend Yield 75th Percentile 5.5%

Industry and Market average data is calculated daily.

Note all dividend per share amounts are annualized and not quarterly or other period.

NasdaqGS:NDAQ Future Dividends Estimate Data
Date (Data in $) Dividend per Share (annual) Avg. No. Analysts
2024-12-31
2023-12-31
2022-12-31 2.35 4.00
2021-12-31 2.10 14.00
2020-12-31 1.98 14.00
2020-04-09
NasdaqGS:NDAQ Past Annualized Dividends Data
Date (Data in $) Dividend per share (annual) Avg. Yield (%)
2019-10-23 1.880 1.807
2019-07-24 1.880 1.903
2019-04-24 1.880 1.977
2019-01-30 1.760 2.014
2018-10-24 1.760 2.068
2018-03-28 1.760 1.957
2018-02-28 1.520 1.826
2018-01-30 1.520 1.919
2017-11-07 1.520 1.950
2017-10-25 1.520 2.099
2017-04-26 1.520 2.101
2017-01-31 1.280 1.825
2016-07-27 1.280 1.888
2016-03-31 1.280 1.977
2016-01-28 1.000 1.574
2015-10-22 1.000 1.730
2015-07-23 1.000 1.910
2015-04-23 1.000 1.981
2014-10-24 0.600 1.265
2014-07-24 0.600 1.418
2014-03-27 0.600 1.608
2014-02-05 0.520 1.343
2013-10-23 0.520 1.362
2013-07-24 0.520 1.628
2013-04-24 0.520 1.637
2013-01-31 0.520 1.711
2012-10-24 0.520 2.088
2012-07-25 0.520 2.218
2012-04-25 0.520 2.310

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Whilst dividend payments have been stable, Nasdaq has been paying a dividend for less than 10 years.
  • Dividend payments have increased, but Nasdaq only paid a dividend in the past 8 years.
Current Payout to shareholders
What portion of Nasdaq's earnings are paid to the shareholders as a dividend.
  • Dividends paid are well covered by earnings (2.5x coverage).
Future Payout to shareholders
  • Dividends after 3 years are expected to be well covered by earnings (2.6x coverage).
X
Income/ dividend checks
We assess Nasdaq's dividend by checking for:
  1. Firstly is the company paying a notable dividend (greater than 1.1%) - if not then the rest of the checks are ignored.
  2. Is current dividend yield above the bottom 25% of dividend payers? (1 check)
  3. Is current dividend yield above the top 25% of dividend payers? (1 check)
  4. Have they paid a dividend for 10 years, and during this period has the dividend been volatile (drop of more than 25%)? (1 check)
  5. If they have paid a dividend for 10 years has it increased in this time? (1 check)
  6. How sustainable is the dividend, can Nasdaq afford to pay it from its earnings today and in 3 years (Payout ratio less than 90%)? (2 checks)
  7. Nasdaq has a total score of 2/6, see the detailed checks below.


Full details on the Dividends part of the Simply Wall St company analysis model.

NDAQ Management

 What is the CEO of Nasdaq's salary, the management and board of directors tenure and is there insider trading?

Management is one of the most important areas of a company. We look at unreasonable CEO compensation, how long the team and board of directors have been around for and insider trading.
CEO
Adena Friedman
COMPENSATION $13,869,287
AGE 49
TENURE AS CEO 3.3 years
CEO Bio

Ms. Adena T. Friedman has been the President, Chief Executive Officer and Director of Nasdaq, Inc. since December 2015, December 31, 2016 and January 1, 2017 respectively. She serves as Director at FCLT Global. Ms. Friedman has been the President of Global Capital Access, Technology & Insights at The Nasdaq OMX Group, Inc. since June 12, 2014. She oversees the strategy, operations and finances of three Nasdaq businesses: information services, technology solutions and the corporate client group. She has been a Board Observer of Digital Reasoning Systems, Inc. since May 3, 2016. Ms. Friedman has been Director at Federal Reserve Bank of New York since November 2018. She served as Chief Operating Officer of Nasdaq, Inc. from December 2015 to December 31, 2016. She served as the Chief Financial Officer of Carlyle Group Management LLC, the general partner of The Carlyle Group L.P. until May 09, 2014. She served as the Chief Financial Officer of The Carlyle Group LP from March 28, 2011 to May 9, 2014 and served as its Managing Director. Ms. Friedman served as the Chief Financial Officer at Nasdaq OMX Group Inc. from July 2009 to March 4, 2011 and its Executive Vice President, Corporate Strategy from October 2003 to March 4, 2011. Ms. Friedman was responsible for all financial, tax, investor relations, enterprise risk management and investment matters. She served as Executive Vice President of Global Data Products of Nasdaq OMX Group Inc. from 2000 to 2009, Executive Vice President, Data Products since January 2002 and also served as its Executive Vice President. Since October 2003, she served as the Head of Corporate Strategy of Nasdaq Stock Market Inc. Ms. Friedman served as Senior Vice President of Nasdaq Data Products from January 2001 to January 2002. She led the effort in 2004 to launch the NASDAQ Closing Cross. Ms. Friedman joined Nasdaq in 1993. She served as Marketing Manager of marketing efforts to broker-dealers of Nasdaq from April 1995 to August 1997. She served as Vice President of OTC Bulletin Board, Mutual Fund Quotation Service and NasdaqTrader.com from January 2000 to January 2001. She served as a Director of iLevel Solutions, LLC. She served as a Member of Advisory Board of 5AM Solutions, Inc. She served as a Director of NASDAQ Dubai Limited from March 2008 to June 2010. She served as a Director of OTC Bulletin Board and Mutual Fund Quotation Service from August 1997 to January 2000. Ms. Friedman holds an M.B.A., with honors, from Owen Graduate School of Management, Vanderbilt University, in Nashville, USA and a B.A. in Political Science from Williams College in Massachusetts, USA.

CEO Compensation
  • Adena's compensation has been consistent with company performance over the past year, both up more than 20%.
  • Adena's remuneration is about average for companies of similar size in United States of America.
Management Team Tenure

Average tenure and age of the Nasdaq management team in years:

2.6
Average Tenure
49
Average Age
  • The tenure for the Nasdaq management team is about average.
Management Team

Adena Friedman

TITLE
President
COMPENSATION
$14M
AGE
49
TENURE
3.3 yrs

Michael Ptasznik

TITLE
Executive VP Corporate Strategy & CFO
COMPENSATION
$4M
AGE
51
TENURE
3.8 yrs

Brad Peterson

TITLE
Former Executive VP
COMPENSATION
$4M
AGE
59

P. C. Griggs

TITLE
Executive Vice President of Corporate Services
COMPENSATION
$3M
AGE
48
TENURE
2 yrs

Lauren Dillard

TITLE
Executive VP of Global Information Services
COMPENSATION
$8M
AGE
43
TENURE
0.8 yrs

Ed Knight

TITLE
Vice Chairman and Senior Advisor on Public Policy & Litigation
COMPENSATION
$3M
AGE
68
TENURE
0.5 yrs

Ann Dennison

TITLE
Senior VP
AGE
48
TENURE
4 yrs

Edward Ditmire

TITLE
Vice President of Investor Relations

John Zecca

TITLE
Executive VP
AGE
51
TENURE
0.5 yrs

Jeremy Skule

TITLE
Chief Marketing Officer & Executive VP
AGE
45
TENURE
7.3 yrs
Board of Directors Tenure

Average tenure and age of the Nasdaq board of directors in years:

4.2
Average Tenure
60
Average Age
  • The tenure for the Nasdaq board of directors is about average.
Board of Directors

Mike Splinter

TITLE
Independent Chairman of the Board
COMPENSATION
$491K
AGE
69
TENURE
2.9 yrs

Adena Friedman

TITLE
President
COMPENSATION
$14M
AGE
49
TENURE
3.3 yrs

Ed Knight

TITLE
Vice Chairman and Senior Advisor on Public Policy & Litigation
COMPENSATION
$3M
AGE
68
TENURE
0.5 yrs

Steve Black

TITLE
Independent Director
COMPENSATION
$334K
AGE
67
TENURE
8.3 yrs

Tom Kloet

TITLE
Independent Director
COMPENSATION
$474K
AGE
60
TENURE
5.1 yrs

John Rainey

TITLE
Independent Director
COMPENSATION
$329K
AGE
48
TENURE
2.8 yrs

Lars Wedenborn

TITLE
Independent Director
COMPENSATION
$306K
AGE
61
TENURE
12.1 yrs

Essa Kazim Al Mulla

TITLE
Independent Director
COMPENSATION
$304K
AGE
60
TENURE
12.1 yrs

Charlene Begley

TITLE
Independent Director
COMPENSATION
$321K
AGE
52
TENURE
5.9 yrs

Melissa Arnoldi

TITLE
Independent Director
COMPENSATION
$309K
AGE
46
TENURE
2.9 yrs
Who owns this company?
Recent Insider Trading
  • Nasdaq individual insiders have only sold shares in the past 3 months.
Recent Insider Transactions
Announced Type Name Entity Role Start End Shares Max Price ($) Value ($)
10. Mar 20 Sell Jeremy Skule Individual 06. Mar 20 06. Mar 20 -2,755 $109.44 $-301,507
05. Feb 20 Sell Bradley Peterson Individual 03. Feb 20 03. Feb 20 -2,000 $117.52 $-235,040
05. Feb 20 Sell P. C. Griggs Individual 03. Feb 20 04. Feb 20 -3,466 $119.20 $-411,197
09. Sep 19 Sell P. C. Griggs Individual 05. Sep 19 05. Sep 19 -1,444 $101.09 $-145,974
21. Aug 19 Sell Lars Ottersgård Individual 19. Aug 19 19. Aug 19 -4,861 $99.14 $-481,920
01. Aug 19 Sell Ann Dennison Individual 30. Jul 19 30. Jul 19 -5,496 $96.55 $-530,639
12. Jun 19 Sell Charlene Begley Individual 10. Jun 19 10. Jun 19 -6,160 $96.54 $-594,686
11. Jun 19 Sell Bradley Peterson Individual 07. Jun 19 07. Jun 19 -1,550 $96.67 $-149,801
17. May 19 Sell Lars Wedenborn Individual 16. May 19 16. May 19 -1,946 $90.36 $-175,841
X
Management checks
We assess Nasdaq's management by checking for:
  1. Is the CEO's compensation unreasonable compared to market cap? (1 check)
  2. Has the CEO's compensation increased more than 20% whilst the EPS is down more then 20%? (1 check)
  3. Is the average tenure of the management team less than 2 years? (1 check)
  4. Is the average tenure of the board of directors team less than 3 years? (1 check)
  5. Nasdaq has a total score of 0/6, this is not included on the snowflake, see the detailed checks below.


Note: We use the top 6 management executives and board members in our calculations.

Note 2: Insider trading include any internal stakeholders and these transactions .

Full details on the Management part of the Simply Wall St company analysis model.

NDAQ News

Simply Wall St News

Is Nasdaq, Inc.'s (NASDAQ:NDAQ) Stock Available For A Good Price After Accounting For Growth?

As Warren Buffett’s right-hand man Charlie Munger said, “No matter how wonderful a business is, it’s not worth an infinite price.” Nasdaq is available at price-to-earnings ratio of 30.58x, showing us it is overvalued compared to the US market average ratio of 17.42x , and undervalued based on its latest annual earnings update compared to the Capital Markets average of 39.82x. … However, to properly examine the value of a high-growth stock such as Nasdaq, we must reflect its earnings growth into the valuation. … A PE ratio of 30.58x and expected year-on-year earnings growth of 11% give Nasdaq a quite high PEG ratio of 2.69x.

Simply Wall St -

Here's How P/E Ratios Can Help Us Understand Nasdaq, Inc. (NASDAQ:NDAQ)

View our latest analysis for Nasdaq How Do I Calculate Nasdaq's Price To Earnings Ratio? … The formula for price to earnings is: Price to Earnings Ratio = Price per Share ÷ Earnings per Share (EPS) Or for Nasdaq: P/E of 29.91 = $97.95 ÷ $3.27 (Based on the year to June 2019.) Is A High Price-to-Earnings Ratio Good? … A higher P/E ratio means that investors are paying a higher price for each $1 of company earnings.

Simply Wall St -

Is Nasdaq, Inc. (NASDAQ:NDAQ) A Smart Choice For Dividend Investors?

With a 1.8% yield and a seven-year payment history, investors probably think Nasdaq looks like a reliable dividend stock. … Nasdaq has been paying a dividend for the past seven years. … Nasdaq has been growing its dividend quite rapidly, which is exciting.

Simply Wall St -

Nasdaq (NASDAQ:NDAQ) Shareholders Have Enjoyed An Impressive 139% Share Price Gain

During five years of share price growth, Nasdaq achieved compound earnings per share (EPS) growth of 3.8% per year. … So for companies that pay a generous dividend, the TSR is often a lot higher than the share price return. … We note that for Nasdaq the TSR over the last 5 years was 161%, which is better than the share price return mentioned above.

Simply Wall St -

Have Insiders Been Selling Nasdaq, Inc. (NASDAQ:NDAQ) Shares?

As Peter Lynch said, 'insiders might sell their shares for any number of reasons, but they buy them for only one: they think the price will rise.' See our latest analysis for Nasdaq Nasdaq Insider Transactions Over The Last Year Over the last year, we can see that the biggest insider sale was by the Executive Vice President of Global Trading and Market Services, Thomas Wittman, for US$1.2m worth of shares, at about US$88.04 per share. … NasdaqGS:NDAQ Recent Insider Trading, June 6th 2019 If you like to buy stocks that insiders are buying, rather than selling, then you might just love this free list of companies. … Nasdaq Insiders Are Selling The Stock The last three months saw significant insider selling at Nasdaq.

Simply Wall St -

Should Nasdaq, Inc. (NASDAQ:NDAQ) Be Part Of Your Portfolio?

A dividend paying company with growing earnings can be rewarding in the long term. … Unfortunately, one common occurrence with dividend companies is for investors to be enticed in by the seemingly attractive yield, and lose money when the company has to cut its dividend payments. … With a 2.0% yield and a seven-year payment history, investors probably think Nasdaq looks like a reliable dividend stock.

Simply Wall St -

Nasdaq (NASDAQ:NDAQ) Shareholders Have Enjoyed An Impressive 128% Share Price Gain

By comparing earnings per share (EPS) and share price changes over time, we can get a feel for how investor attitudes to a company have morphed over time. … Over half a decade, Nasdaq managed to grow its earnings per share at 3.7% a year. … This EPS growth is slower than the share price growth of 18% per year, over the same period.

Simply Wall St -

Should We Worry About Nasdaq, Inc.'s (NASDAQ:NDAQ) P/E Ratio?

The goal of this article is to teach you how to use price to earnings ratios (P/E ratios). … We'll look at Nasdaq, Inc.'s (NASDAQ:NDAQ) P/E ratio and reflect on what it tells us about the company's share price. … Nasdaq has a price to earnings ratio of 31.04, based on the last twelve months.

Simply Wall St -

Nasdaq, Inc. (NASDAQ:NDAQ): Poised For Long Term Success?

Looking at Nasdaq, Inc.'s (NASDAQ:NDAQ) earnings update on 31 December 2018, … the consensus outlook from analysts appear highly confident, … with earnings expected to grow by a high double-digit of 72% in the upcoming year,

Simply Wall St -

Is Nasdaq, Inc. (NASDAQ:NDAQ) A Great Dividend Stock?

Does Nasdaq tick all the boxes of a great dividend stock? … Check out our latest analysis for Nasdaq? … Take the survey and be part of one of the most advanced studies of stock market investors to date

Simply Wall St -

NDAQ Company Info

Description

Nasdaq, Inc. operates as a technology company that serves capital markets and other industries worldwide. The company’s Market Services segment includes equity derivative trading and clearing, cash equity trading, fixed income and commodities trading and clearing, and trade management service businesses. This segment operates various exchanges and other marketplace facilities across various asset classes, which consist of commodities, cash equity, debt, structured products, and exchange traded products; and provides broker, clearing, settlement, and central depository services. Its Corporate Services segment includes listing services and corporate solution businesses that deliver critical capital market and governance solutions to public and private companies. The company’s Information Services segment provides market data, index, and investment data and analytics to institutional and retail investors. Its Market Technology segment offers technology solutions for trading, clearing, settlement, surveillance, depository, and information dissemination to markets. It also provides Nasdaq Trade Surveillance solution, a managed service designed for brokers and other market participants; and Nasdaq Risk, a suite of products that offer a real-time, multi-tiered risk solution that integrates pre-, at-and on-trade risk management and margining. In addition, the company offers corporate responsibility and environmental, social, and governance data management and reporting services. The company was formerly known as The NASDAQ OMX Group, Inc. and changed its name to Nasdaq, Inc. in September 2015. Nasdaq, Inc. was founded in 1971 and is headquartered in New York, New York.

Details
Name: Nasdaq, Inc.
NDAQ
Exchange: NasdaqGS
Founded: 1971
$17,182,669,570
165,011,712
Website: http://www.nasdaq.com
Address: Nasdaq, Inc.
151 West 42nd Street,
New York,
New York, 10036,
United States
Listings
Exchange Symbol Ticker Symbol Security Exchange Country Currency Listed on
NasdaqGS NDAQ Common Stock Nasdaq Global Select US USD 01. Jul 2002
DB NAQ Common Stock Deutsche Boerse AG DE EUR 01. Jul 2002
LSE 0K4T Common Stock London Stock Exchange GB USD 01. Jul 2002
BRSE NAQ Common Stock Berne Stock Exchange CH CHF 01. Jul 2002
WBAG NDAQ Common Stock Wiener Boerse AG AT EUR 01. Jul 2002
BMV NDAQ * Common Stock Bolsa Mexicana de Valores MX MXN 01. Jul 2002
DIFX NDAQ Common Stock NASDAQ Dubai Limited AE USD 01. Jul 2002
BOVESPA N1DA34 BDR EACH 2 REPR 1 COM Bolsa de Valores de Sao Paulo BR BRL 27. Jan 2020
Number of employees
Current staff
Staff numbers
4,361
Nasdaq employees.
Industry
Financial Exchanges and Data
Diversified Financials
Company Analysis and Financial Data Status
Area Date (UTC time)
Company Analysis updated: 2020/04/09 01:32
End of day share price update: 2020/04/08 00:00
Last estimates confirmation: 2020/04/08
Last earnings filing: 2020/02/25
Last earnings reported: 2019/12/31
Last annual earnings reported: 2019/12/31


All dates and times in UTC. All financial data provided by Standard & Poor’s Capital IQ.

Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.