Nasdaq currently trades at $88.95 per share and has shown little upside over the past six months, posting a middling return of 3.2%.
Is now the time to buy NDAQ? Or does the price properly account for its business quality and fundamentals? Find out in our full research report, it’s free.
Why Do Investors Watch NDAQ Stock?
Originally founded in 1971 as the world's first electronic stock market, Nasdaq (NASDAQ: NDAQ) operates global exchanges and provides technology, data, and corporate services that help companies, investors, and financial institutions navigate capital markets.
Three Positive Attributes:
1. Long-Term Revenue Growth Shows Strong Momentum
A company’s long-term sales performance is one signal of its overall quality. Even a bad business can shine for one or two quarters, but a top-tier one grows for years.
Thankfully, Nasdaq’s 12.2% annualized revenue growth over the last five years was solid. Its growth beat the average financials company and shows its offerings resonate with customers.
2. EPS Moving Up Steadily
We track the long-term change in earnings per share (EPS) because it highlights whether a company’s growth is profitable.
Nasdaq’s decent 10.6% annual EPS growth over the last five years aligns with its revenue performance. This tells us its incremental sales were profitable.
3. Market-Beating ROE Showcases Attractive Growth Opportunities
Return on equity (ROE) measures how effectively banks generate profit from each dollar of shareholder equity - a critical funding source. High-ROE institutions typically compound shareholder wealth faster over time through retained earnings, share repurchases, and dividend payments.
Over the last five years, Nasdaq has averaged an ROE of 15.6%, healthy for a company operating in a sector where the average shakes out around 10% and those putting up 25%+ are greatly admired. This shows Nasdaq has a decent competitive moat.
Final Judgment
Nasdaq is an interesting business with potential, but at $88.95 per share (or 22.7× forward P/E), is now the right time to buy the stock? See for yourself in our full research report, it’s free.
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