IMPORTANT DISCLAIMER: Blank Capital Research ("BCR") is a technology platform, not a registered investment advisor or broker-dealer. The algorithmically generated signals, scores, and rankings provided on this site ("God Mode" Signals) are for informational and research purposes only and do not constitute financial advice, investment recommendations, or an offer to sell or solicit an offer to buy any securities.
HYPOTHETICAL PERFORMANCE RESULTS: The "timing scores" and "regime signals" displayed are based on quantitative models. Hypothetical or simulated performance results have certain inherent limitations. Unlike an actual performance record, simulated results do not represent actual trading. Also, since the trades have not actually been executed, the results may have under-or-over compensated for the impact, if any, of certain market factors, such as lack of liquidity.
RISK OF LOSS: Trading in financial markets involves a high degree of risk and may result in the loss of your entire investment. Data provided by third-party sources (Intrinio, Snowflake) is believed to be reliable but is not guaranteed for accuracy or completeness. Past performance is not indicative of future results.
NDAQ Stock Analysis: Hold (Score 55.6/100) | Blank Capital Research | Blank Capital Research
NDAQ
NASDAQ, INC.
$83.30
-0.91 (-1.08%)
Score55.6
Data as of Apr 6, 2026
NDAQ
NASDAQ, INC.
FinancialsTrading
$83.30
-0.91 (-1.08%)
Open $84.21High $84.21Low $82.18Prev $84.21Vol ---52W: $64.84 – $101.79
Hold
Composite score
01234567890123456789.0123456789
Global rank
#1,018
Percentile
Top 23%
Business quality
72nd
percentile
Exceptional capital efficiency and structural profitability. This enterprise generates superior returns on invested capital compared to industry peers.
Relative valuation derived from Financials sector median benchmarks. Model weights: EV/EBITDA (40%), P/B (35%), P/S (25%). Multiples adjusted for extreme outliers and non-recurring volatility.
Auditing capital efficiency...
Quality Profile Audit
Score: 72GRADE B+
Composite assessment of profitability, capital efficiency, and financial strength. Top-tier entities demonstrate sustainable cash flow generation.
Return on Equity
Profit generated per dollar of shareholder equity
12.9%
Sector: 8.5%
Dividend Analysis audit
GROWTH
1.15%
Trailing Yield
$1.15
Per $100 Invested
Modest dividend — capital prioritized for reinvestment.
Est. Payout Ratio
36%SAFE
Analyst Projections
Analyst Consensus
Unlock Valuation Tools
Sign up for free access to institutional-quality research tools.
Based on our 6-factor quantitative model, NASDAQ, INC. (NDAQ) receives a "Hold" rating with a composite score of 55.6/100, ranked #1018 out of 4446 stocks. Key factor scores: Quality 72/100, Value 58/100, Momentum 44/100. This is quantitative analysis only — not investment advice.
NASDAQ, INC. (NDAQ) Stock Analysis — April 2026 Rating, Price, and Forecast
Company Overview — What Does NASDAQ, INC. Do?
Nasdaq, Inc. operates as a technology company that serves capital markets and other industries worldwide. The Market Technology segment includes anti financial crime technology business, which offers Nasdaq Trade Surveillance, a SaaS solution for brokers and other market participants to assist them in complying with market rules, regulations, and internal market surveillance policies; Nasdaq Automated Investigator, a cloud-deployed anti-money laundering tool; and Verafin, a SaaS technology provider of anti-financial crime management solutions. This segment also handles assets, such as cash equities, equity derivatives, currencies, interest-bearing securities, commodities, energy products, and digital currencies. The Investment Intelligence segment sells and distributes historical and real-time market data; develops and licenses Nasdaq-branded indexes and financial products; and provides investment insights and workflow solutions. The Corporate Platforms segment operates listing platforms; and offers investor relations intelligence and governance solutions. As of December 31, 2021, it had 4,178 companies listed securities on The Nasdaq Stock Market, including 1,632 listings on The Nasdaq Global Select Market; 1,169 on The Nasdaq Global Market; and 1,377 on The Nasdaq Capital Market. The 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 include derivatives, commodities, cash equity, debt, structured products, and exchange traded products; and provides broker, clearing, settlement, and central depository 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. NASDAQ, INC. (NDAQ) is classified as a large-cap stock in the Financials sector, specifically within the Trading industry. The company is led by CEO Adena T. Friedman and employs approximately 6,380 people, headquartered in New York, New York. With a market capitalization of $48.4B, NDAQ is one of the prominent companies in the Financials sector.
NASDAQ, INC. (NDAQ) Stock Rating — Hold (April 2026)
As of April 2026, NASDAQ, INC. receives a Hold rating with a composite score of 55.6/100 and 3 out of 5 stars from the Blank Capital Research quantitative model.NDAQ ranks #1,018 out of 4,446 stocks in our coverage universe. Within the Financials sector, NASDAQ, INC. ranks #314 of 891 stocks, placing it in the upper half of its Financials peers. The rating is generated by a multi-factor model that weighs quality (30%), momentum (25%), value (15%), investment (10%), stability (10%), and short interest (10%).
NDAQ Stock Price and 52-Week Range
NASDAQ, INC. (NDAQ) currently trades at $83.30. The stock lost $0.91 (1.1%) in the most recent trading session. The 52-week high for NDAQ is $101.78, which means the stock is currently trading -18.2% from its annual peak. The 52-week low is $64.84, putting the stock 28.5% above its annual trough. Recent trading volume was 348K shares, suggesting relatively thin trading activity.
Is NDAQ Overvalued or Undervalued? — Valuation Analysis
NASDAQ, INC. (NDAQ) carries a value factor score of 58/100 in the Blank Capital model, indicating fair valuation relative to historical norms. The trailing price-to-earnings ratio is 31.18x, compared to the Financials sector average of 14.88x — a premium of 110%. The price-to-book ratio stands at 4.02x, versus the sector average of 1.22x. The price-to-sales ratio is 6.11x, compared to 0.90x for the average Financials stock. On an enterprise value basis, NDAQ trades at 20.80x EV/EBITDA, versus 3.26x for the sector.
Overall, NDAQ's valuation appears roughly in line with sector benchmarks, suggesting the market is pricing the stock fairly given its current fundamentals and growth trajectory. Neither deep value nor significantly overpriced, the stock occupies a middle ground on valuation.
NASDAQ, INC. Profitability — ROE, Margins, and Quality Score
NASDAQ, INC. (NDAQ) earns a quality factor score of 72/100, indicating solid business quality with consistent operational execution. The return on equity (ROE) is 12.9%, compared to the Financials sector average of 8.5%, which is within a healthy range. Return on assets (ROA) comes in at 5.1% versus the sector average of 1.2%.
On a margin basis, NASDAQ, INC. reports gross margins of 62.3%. The operating margin is 26.7% (sector: 21.8%). Net profit margin stands at 19.5%, versus 17.7% for the average Financials stock. Revenue growth is running at 9.3% on a trailing basis, compared to 9.4% for the sector. The overall profitability profile is adequate, though there may be room for margin expansion.
NDAQ Debt, Balance Sheet, and Financial Health
NASDAQ, INC. has a debt-to-equity ratio of 70.0%, compared to the Financials sector average of 121.0%. Leverage is within a manageable range for the industry, though investors should monitor debt trends over time. The current ratio is 1.01x, suggesting adequate working capital coverage. Total debt on the balance sheet is $8.57B. Cash and equivalents stand at $470M.
NDAQ has a beta of 0.88, meaning it is roughly in line with the broader market in terms of price volatility. The stability factor score for NASDAQ, INC. is 80/100, indicating low-volatility characteristics and consistent price behavior that appeals to risk-averse investors.
NASDAQ, INC. Revenue and Earnings History — Quarterly Trend
In TTM 2026, NASDAQ, INC. reported revenue of $8.04B and earnings per share (EPS) of $3.12. Net income for the quarter was $1.57B. Gross margin was 62.3%. Operating income came in at $2.15B.
In FY 2025, NASDAQ, INC. reported revenue of $8.26B and earnings per share (EPS) of $3.12. Net income for the quarter was $1.79B. Gross margin was 63.5%. Revenue grew 11.6% year-over-year compared to FY 2024. Operating income came in at $2.33B.
In Q3 2025, NASDAQ, INC. reported revenue of $1.96B and earnings per share (EPS) of $0.74. Net income for the quarter was $423M. Gross margin was 67.2%. Revenue grew 2.9% year-over-year compared to Q3 2024. Operating income came in at $586M.
In Q2 2025, NASDAQ, INC. reported revenue of $2.09B and earnings per share (EPS) of $0.79. Net income for the quarter was $452M. Gross margin was 62.5%. Revenue grew 16.6% year-over-year compared to Q2 2024. Operating income came in at $568M.
Over the past 8 quarters, NASDAQ, INC. has demonstrated a growth trajectory, with revenue expanding from $1.79B to $8.04B. Investors analyzing NDAQ stock should weigh these quarterly trends alongside the valuation and quality metrics discussed above.
NDAQ Dividend Yield and Income Analysis
NASDAQ, INC. (NDAQ) currently pays a dividend yield of 1.1%. At this yield, a $10,000 investment in NDAQ stock would generate approximately $$115.00 in annual dividend income. This compares to the Financials sector average dividend yield of 2.5%, meaning NDAQ yields less than the typical sector peer. With a net margin of 19.5%, the dividend appears well-covered by earnings, suggesting sustainable payouts going forward.
NDAQ Momentum and Technical Analysis Profile
NASDAQ, INC. (NDAQ) has a momentum factor score of 44/100, reflecting neutral trend characteristics. The stock is neither significantly outperforming nor underperforming the broader market on a momentum basis. The investment factor score is 29/100, which measures capital allocation efficiency and asset growth patterns. The short interest score of 34/100 signals elevated short interest, which can indicate bearish sentiment among institutional investors.
NDAQ vs Competitors — Financials Sector Ranking and Peer Comparison
Comparing NDAQ against the S&P 500 benchmark is also instructive for understanding relative performance. Investors can view the full NDAQ vs S&P 500 (SPY) comparison to assess how NASDAQ, INC. stacks up against the broader market across all factor dimensions.
NDAQ Next Earnings Date
No upcoming earnings date has been announced for NASDAQ, INC. (NDAQ) at this time. Check the earnings calendar for the latest scheduling updates across all stocks in our coverage universe.
Should You Buy NDAQ? — Investment Thesis Summary
NASDAQ, INC. presents a balanced picture with arguments on both sides. The quality score of 72/100 indicates above-average profitability and business fundamentals. Low volatility (stability score 80/100) reduces downside risk.
In summary, NASDAQ, INC. (NDAQ) earns a Hold rating with a composite score of 55.6/100 as of April 2026. The rating is derived from the Blank Capital Research methodology, which combines six factor dimensions into a single quantitative ranking. Investors should consider these quantitative signals alongside their own fundamental research, risk tolerance, and investment time horizon before making buy or sell decisions on NDAQ stock.
We'll email you when stocks you follow change their composite rating.
Institutional Research Dossier
NASDAQ, INC. (NDAQ) Deep Dive Analysis
Published on March 24, 2026
Action RatingHold
Sections
Executive Summary
We maintain a Hold rating on Nasdaq, Inc. (NDAQ). While the company exhibits strong profitability and stability, its valuation appears stretched relative to its sector and historical performance, and its momentum score is weak. The company's strategic shift towards higher-growth, recurring revenue streams in areas like anti-financial crime technology and investment intelligence is promising, but the market has already priced in much of this potential, leaving limited upside in the near term.
The primary concern revolves around the premium valuation, which doesn't fully align with the company's growth prospects and the inherent cyclicality of its market services segment. While Nasdaq's diversification efforts are commendable, the core exchange business remains sensitive to market volatility and trading volumes, creating a degree of uncertainty that warrants a cautious stance. Investors should await a more compelling entry point before considering a long position.
Business Strategy & Overview
Nasdaq operates a diversified business model spanning market services, corporate platforms, investment intelligence, and market technology. Its core business revolves around operating exchanges for various asset classes, including equities, derivatives, and fixed income. This segment generates revenue through transaction fees, listing fees, and clearing services. However, Nasdaq has strategically expanded beyond its traditional exchange business to diversify its revenue streams and enhance its growth profile.
A key element of Nasdaq's strategy is its focus on recurring revenue streams, particularly within its Investment Intelligence and Market Technology segments. The Investment Intelligence segment benefits from the increasing demand for data and analytics, driven by the growing sophistication of financial markets and the need for enhanced investment decision-making. The Market Technology segment, which includes anti-financial crime technology, is experiencing rapid growth due to increasing regulatory scrutiny and the need for advanced surveillance and compliance solutions. The acquisition of Verafin, a SaaS provider of anti-financial crime management solutions, further strengthens Nasdaq's position in this high-growth market.
Nasdaq's corporate platforms segment provides listing services and investor relations solutions, catering to companies seeking to access capital markets and enhance their corporate governance practices. This segment benefits from Nasdaq's strong brand reputation and its position as a leading exchange for technology and growth companies. The company's strategic focus on ESG (Environmental, Social, and Governance) initiatives also aligns with the growing demand for sustainable investing and responsible corporate behavior.
The company's strategic positioning is further enhanced by its global reach, with operations in North America, Europe, and Asia. This global presence allows Nasdaq to capitalize on growth opportunities in emerging markets and to serve the needs of multinational corporations. However, it also exposes the company to geopolitical risks and currency fluctuations. Overall, Nasdaq's business strategy is centered on diversifying its revenue streams, expanding its presence in high-growth markets, and leveraging its technology and expertise to provide innovative solutions to its clients.
Execution Benchmarks audit
Revenue Growth
YOY expansion rate
9.3%
Sector: 9.4%
IN LINE
Economic Moat Analysis
Nasdaq possesses a narrow economic moat, primarily derived from intangible assets and network effects. The Nasdaq brand itself carries significant weight, particularly within the technology sector, attracting listings from innovative and high-growth companies. This reputation creates a virtuous cycle, as prestigious listings further enhance the exchange's appeal to other companies seeking to go public. The network effect is evident in the trading business, where increased liquidity attracts more participants, leading to tighter spreads and more efficient price discovery. This, in turn, attracts even more traders, reinforcing the exchange's dominance.
However, the moat is not impenetrable. Competition from other exchanges, such as the New York Stock Exchange (NYSE) and various electronic communication networks (ECNs), limits Nasdaq's pricing power. While Nasdaq holds a significant market share in certain segments, particularly in technology listings, it faces intense competition in other areas, such as options trading and fixed income. The rise of alternative trading systems and dark pools also poses a threat to Nasdaq's market share, as these platforms offer alternative venues for trading that may be more attractive to certain participants.
Switching costs for listed companies are relatively low, as they can transfer their listings to other exchanges if they perceive better value or service elsewhere. While the process of switching exchanges can be complex and time-consuming, it is not prohibitively expensive. This lack of high switching costs limits Nasdaq's ability to retain listings if it fails to provide competitive services or pricing. The anti-financial crime technology business, however, exhibits higher switching costs due to the integration of these systems into clients' core operations and the regulatory burden of changing providers.
While Nasdaq's diversification efforts are aimed at strengthening its moat, the success of these initiatives remains to be seen. The Investment Intelligence segment, for example, faces competition from established data providers such as Bloomberg and Refinitiv. The Market Technology segment, while promising, is still relatively small compared to the core exchange business. Therefore, while Nasdaq possesses certain competitive advantages, its moat is not wide enough to justify a premium valuation. The company must continue to innovate and invest in its technology and services to maintain its competitive position and widen its moat over time.
Financial Health & Profitability
Nasdaq's financial health is generally sound, characterized by strong profitability and cash flow generation. The company's revenue has grown steadily in recent years, driven by its diversification efforts and the increasing demand for its products and services. The TTM revenue of $8.26 billion represents a significant increase compared to the $7.40 billion in FY2024 and $6.06 billion in FY2023, demonstrating a robust growth trajectory. The company's gross margin of 62.3% and operating margin of 26.7% are also healthy, indicating efficient cost management and a strong pricing power.
However, a closer look at the quarterly financial history reveals some variability in margins. While the gross margin has generally remained above 60% in recent quarters, it dipped to 59.2% in Q1 FY2025. Similarly, the operating margin has fluctuated between 26% and 30%, reflecting the impact of various factors such as acquisitions, investments, and market conditions. The net income of $1.79 billion for FY2025 is a significant improvement compared to the $1.11 billion in FY2024, indicating a strong earnings growth. However, the company's net margin of 19.5% is only slightly above the sector average of 17.8%.
Nasdaq's balance sheet is characterized by a moderate level of leverage. The company's total debt of $8.57 billion is significantly higher than its total cash of $470 million, resulting in a debt-to-equity ratio of 70.00, which is lower than the sector average of 115.00. While the company's current ratio of 1.01 indicates adequate liquidity, it is important to monitor its debt levels and cash flow generation to ensure its ability to meet its financial obligations. The company's free cash flow of $6.27 billion is substantial, providing ample resources for investments, acquisitions, and shareholder returns.
Compared to the sector, Nasdaq exhibits superior profitability, as evidenced by its higher ROE of 12.9% compared to the sector average of 8.5%. However, its P/E ratio of 27.7x is significantly higher than the sector average of 15.5x, suggesting that the market has already priced in much of its growth potential. Overall, Nasdaq's financial health is solid, but its valuation appears stretched relative to its sector peers. The company's ability to sustain its growth trajectory and improve its margins will be crucial in justifying its premium valuation.
Valuation Assessment
Nasdaq's valuation presents a mixed picture. While the company exhibits strong fundamentals and growth prospects, its current multiples suggest it is trading at a premium compared to its peers and historical averages. The company's P/E ratio of 27.7x is significantly higher than the Financials sector average of 15.5x, indicating that investors are willing to pay a higher price for each dollar of earnings. Similarly, its EV/EBITDA multiple of 4.9x is also higher than the sector average of 3.5x, suggesting that the company is relatively more expensive on an enterprise value basis.
However, it's important to consider Nasdaq's growth profile when assessing its valuation. The company's revenue growth of 9.3% is in line with the sector average, but its strategic shift towards higher-growth areas like anti-financial crime technology and investment intelligence could potentially drive faster growth in the future. The market may be anticipating this accelerated growth, justifying the higher multiples. However, it's crucial to assess whether this growth is sustainable and whether the company can continue to execute its strategy effectively.
The company's free cash flow yield, while not explicitly provided, can be estimated based on its market capitalization and free cash flow. With a market cap of $49.08 billion and free cash flow of $6.27 billion, the estimated FCF yield is approximately 12.77%. This yield is relatively attractive, suggesting that the company is generating a significant amount of cash relative to its market value. However, it's important to consider the sustainability of this free cash flow and whether it can be maintained or increased in the future.
Given the premium valuation, investors should carefully consider the risks and uncertainties associated with Nasdaq's business. The company's exposure to market volatility and regulatory changes could impact its earnings and cash flow. Furthermore, increased competition from other exchanges and alternative trading platforms could erode its market share and pricing power. While Nasdaq's diversification efforts are aimed at mitigating these risks, the success of these initiatives is not guaranteed. Overall, Nasdaq's valuation appears fair to slightly expensive, reflecting its strong fundamentals and growth prospects, but also incorporating a degree of risk and uncertainty. A Hold rating is appropriate, pending further evidence of sustained growth and margin improvement.
Risk & Uncertainty
Nasdaq faces several specific risks that could impact its future performance. One of the most significant risks is regulatory scrutiny. As a major player in the financial markets, Nasdaq is subject to extensive regulation by various government agencies, including the Securities and Exchange Commission (SEC). Changes in regulations, such as those related to market structure, trading practices, or listing requirements, could have a material adverse effect on Nasdaq's business. Increased regulatory enforcement could also lead to higher compliance costs and potential penalties.
Another key risk is competition. Nasdaq operates in a highly competitive industry, facing competition from other exchanges, alternative trading systems, and technology providers. The rise of new technologies, such as blockchain and decentralized finance (DeFi), could disrupt the traditional exchange model and create new competitive threats. Nasdaq must continue to innovate and invest in its technology and services to maintain its competitive position and attract listings and trading volume.
Market volatility and economic downturns also pose a significant risk to Nasdaq's business. During periods of market volatility, trading volumes tend to increase, which can benefit Nasdaq's transaction-based revenue. However, prolonged periods of economic weakness or market uncertainty can lead to lower trading volumes and reduced demand for Nasdaq's products and services. A decline in IPO activity could also negatively impact Nasdaq's listing revenue. The company's exposure to global markets also exposes it to geopolitical risks and currency fluctuations.
Finally, integration risk associated with acquisitions is a concern. Nasdaq has made several acquisitions in recent years, including the acquisition of Verafin. Integrating these acquisitions into Nasdaq's existing operations can be challenging and may not always be successful. Failure to effectively integrate acquisitions could lead to higher costs, lower synergies, and a negative impact on Nasdaq's financial performance. The company's debt levels, while manageable, could also constrain its ability to make future acquisitions or investments.
Bulls Say / Bears Say
The Bull Case
BULL VIEWNasdaq's strategic shift towards higher-margin, recurring revenue streams in areas like anti-financial crime technology will drive sustainable growth and improve profitability.
BULL VIEWThe increasing demand for data and analytics, coupled with Nasdaq's strong brand reputation, will fuel growth in its Investment Intelligence segment and enhance its competitive position.
BULL VIEWNasdaq's global presence and diversified business model provide resilience against market volatility and economic downturns, making it a relatively stable investment in the financial sector.
The Bear Case
BEAR VIEWNasdaq's premium valuation is unsustainable given the cyclicality of its core exchange business and the potential for increased competition from alternative trading platforms.
BEAR VIEWRegulatory changes and increased scrutiny could negatively impact Nasdaq's earnings and cash flow, particularly in its market services segment.
BEAR VIEWThe company's debt levels and integration risks associated with recent acquisitions could constrain its ability to invest in future growth opportunities and generate shareholder value.
About the Author
Marques Blank
Founder & Chief Investment Officer, Blank Capital
Marques brings 15 years of institutional finance and investing experience, having overseen financial planning for a $1.6B defense business unit. He developed the proprietary 6-factor quantitative model used to score NDAQ and 4,400+ other equities.
NASDAQ, INC. exhibits a 364% valuation premium relative to institutional benchmarks. This represents a potential valuation overextension based on current multiples.
Return on Assets
Efficiency of asset utilization
5.1%
Sector: 1.2%
Gross Margin
Pricing power and cost efficiency
62.3%
Sector: 0.0%
Operating Margin
Core business profitability
26.7%
Sector: 21.8%
Net Margin
Bottom-line profitability
19.5%
Sector: 17.7%
Factor Methodology
The Quality factor evaluates the persistence and magnitude of cash flows. Companies with scores >70 exhibit superior competitive moats and financial resilience through economic cycles.
Sector Avg Yield2.48%
Yield Delta-54%
Income Projection audit
A $10,000 investment would generate approximately $115 annually in dividends at the current trailing rate.
