Nasdaq, Inc. (NASDAQ: NDAQ)

Sector: Financial Services Industry: Financial Data & Stock Exchanges CIK: 0001120193
Market Cap 45.98 Bn
P/B 3.76
P/E 25.72
P/S 5.57
ROIC (Qtr) 9.62
Div Yield % 1.31
Rev 1y % (Qtr) 4.63
Total Debt (Qtr) 9.47 Bn
Debt/Equity (Qtr) 0.77
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About

Investment thesis

Bull case

  • Operating cash flow of 2.25B provides strong 13.67x coverage of stock compensation 165M, indicating sustainable incentive practices.
  • Tangible assets of 10.17B provide exceptional 12.96x coverage of deferred revenue 785M, showing strong service capability backing.
  • Robust free cash flow of 1.99B exceeds capital expenditure of 266M by 7.48x, indicating strong organic growth funding capability.
  • Robust tangible asset base of 10.17B provides 242.17x coverage of working capital 42M, indicating strong operational backing.
  • Retained earnings of 9.59B provide full 1.06x coverage of long-term debt 9.04B, indicating strong internal capital position.

Bear case

  • Operating cash flow of 2.25B barely covers its investment activities of (1.10B), with a coverage ratio of -2.05, indicating heavy reliance on external financing for growth which may not be sustainable in a tighter credit environment.
  • Operating cash flow of 2.25B provides thin coverage of dividend payments of (601M) with a -3.75 ratio, suggesting potential dividend sustainability issues if operational performance deteriorates.
  • Free cash flow of 1.99B represents just -2.41x of debt issuance (826M), suggesting concerning reliance on leverage rather than internal cash generation for growth.
  • Retained earnings of 9.59B provide limited buffer against comprehensive income items of (1.77B), which is -5.41x, indicating elevated exposure to market risks.
  • Operating cash flow of 2.25B is outpaced by equity issuance of (616M) (-3.66 ratio), indicating concerning reliance on equity markets for funding operations.

Segments Breakdown of Revenue (2025)

Segments Breakdown of Revenue (2025)

Peer comparison

Companies in the Financial Data & Stock Exchanges
S.No. Ticker Company Market Cap P/E P/S Total Debt (Qtr)
1 SPGI S&P Global Inc. 125.09 Bn 27.98 8.16 13.58 Bn
2 CME Cme Group Inc. 102.51 Bn 68.45 28.03 152.46 Bn
3 ICE Intercontinental Exchange, Inc. 87.85 Bn 26.50 6.95 20.28 Bn
4 MCO Moodys Corp /De/ 80.83 Bn 188.94 21.48 7.36 Bn
5 NDAQ Nasdaq, Inc. 45.98 Bn 25.72 5.57 9.47 Bn
6 COIN Coinbase Global, Inc. 43.14 Bn 34.23 6.01 7.66 Bn
7 MSCI MSCI Inc. 39.87 Bn 33.16 12.72 6.31 Bn
8 CBOE Cboe Global Markets, Inc. 29.80 Bn 30.46 6.45 1.57 Bn

Industry comparisons

Current Valuation Value Ind Avg Percentile
EV to Assets EV to Assets 1.77 2.33
EV to Cash from Ops. EV/CFO 24.32 58.18
EV to Debt EV to Debt 5.79 16.65
EV to EBIT EV/EBIT 21.82 26.06
EV to EBITDA EV/EBITDA 18.51 28.31
EV to Free Cash Flow [EV/FCF] EV/FCF 27.57 -42.51
EV to Market Cap EV to Market Cap 1.19 1.22
EV to Revenue EV/Rev 6.64 21.49
Price to Book Value [P/B] P/B 3.76 -2.91
Price to Earnings [P/E] P/E 25.72 40.52
Dividend Metrics Value Ind Avg Percentile
Dividend Coverage Ratio Div Coverage (Qtr) 2.98 2.14
Dividend Payout Ratio % Div Payout % (Qtr) 33.70 32.20
Dividend per Basic Share Div per Share (Qtr) 1.05 2.66
FCF Dividend Payout Ratio % FCF Div Payout % (Qtr) 30.15 26.87
Interest Coverage Int. cover (Qtr) 6.85 6.35
Growth Metrics Value Ind Avg Percentile
Capex Growth (1y) % Capex 1y % (Qtr) -28.50 -9.92
Cash and Equivalents Growth (1y) % Cash & Equiv 1y % (Qtr) 30.66 19.34
Dividend Growth (1y) % Div 1y % (Qtr) 11.70 1.10
EBIAT Growth (1y) % EBIAT 1y % (Qtr) 45.84 -0.85
EBITDA Growth (1y) % EBITDA 1y % (Qtr) 22.90 7.35
EBIT Growth (1y) % EBIT 1y % (Qtr) 34.75 3.52
EBT Growth (1y) % EBT 1y % (Qtr) 47.90 6.34
EPS Growth (1y) % EPS 1y % (Qtr) 60.82 19.26
FCF Growth (1y) % FCF 1y % (Qtr) 14.84 32.90
Gross Profit Growth (1y) % Gross Profit 1y % (Qtr) 12.91 11.33
Liquidity Ratios Value Ind Avg Percentile
Asset Utilization Ratio Asset Util Ratio (Qtr) 0.27 0.61
Cash Payout Ratio Cash Payout (Qtr) 0.24 0.24
Cash Ratio Cash Ratio (Qtr) 0.10 0.52
Current Ratio Curr Ratio (Qtr) 1.01 1.97
Debt to Equity Ratio Debt/Equity (Qtr) 0.77 0.63
Interest Cover Ratio Int Coverage (Qtr) 6.85 6.35
Times Interest Earned Times Interest Earned (Qtr) 6.85 6.35
Profitability Value Ind Avg Percentile
EBITDA Margin % EBITDA Margin % (Qtr) 38.10 -986.89
EBIT Margin % EBIT Margin % (Qtr) 30.42 -993.67
EBT Margin % EBT Margin % (Qtr) 25.97 -1,072.83
Gross Margin % Gross Margin % (Qtr) 63.50 72.77
Net Profit Margin % Net Margin % (Qtr) 21.60 -1,442.37