Nasdaq, Inc. (NDAQ) Intrinsic Value & DCF Valuation
Financial - Data & Stock Exchanges · NASDAQ
Current Price
$95.55
Intrinsic Value
$116.44
+17.9% margin of safety
What Is Nasdaq, Inc.'s Intrinsic Value?
As of 2026-07-29, the base-case DCF model estimates the intrinsic value of Nasdaq, Inc. (NDAQ) at $116.44 per share, compared with a market price of $95.55, a margin of safety of +17.9%. The base case assumes 11.0% annual free cash flow growth and a 10.0% discount rate.
Across the sensitivity grid the estimate spans $96.93 to $138.61. Intrinsic value is an estimate built on assumptions, not a fact. A higher discount rate or slower growth pushes the estimate down, while stronger cash flow growth lifts it.
How the DCF works · Recalculate with your own assumptions · What is intrinsic value?
Is Nasdaq, Inc. (NDAQ) Undervalued?
At $95.55, NDAQ trades about 17.9% below the base-case intrinsic value estimate. That is a real discount, but it stays short of the 30% margin of safety required before calling a stock undervalued.
COMPETITIVE MOAT
↑Network Effects in Trading
More buyers and sellers attract more participants, increasing liquidity and reinforcing Nasdaq's position as a primary trading venue.
↑Data and Analytics Dominance
Nasdaq's vast historical and real-time market data is a critical asset, difficult for competitors to replicate and highly valuable to clients.
↑Brand and Listing Prestige
The Nasdaq brand signifies a certain level of company quality and visibility, attracting companies seeking prestige and investor attention.
INVESTMENT RISKS
↓Competition from Other Exchanges
Other major stock exchanges actively compete for listings and trading volume, potentially eroding Nasdaq's market dominance.
↓Cybersecurity Threats
As a critical financial infrastructure, Nasdaq is a prime target for cyberattacks, which could disrupt operations and damage reputation.
↓Economic Downturns Impact Trading
Recessions and market volatility can significantly reduce trading volumes and new listings, negatively impacting Nasdaq's revenue.
Base case
NDAQ base case valuation
Intrinsic Value
$116.44
Margin of safety
+17.9%
Expected annual return
+4.0%
Base case assumptions: 11.0% annual growth, 10.0% discount rate, 27x exit multiple, 5 year projection. Data as of 2026-07-29.
This base case uses default assumptions and is not financial advice. The intrinsic value changes significantly when the growth rate or discount rate changes. Open the calculator to set your own assumptions and see the full sensitivity range.
Customize the NDAQ valuation
Adjust the growth rate, discount rate, and exit multiple to see how the intrinsic value and margin of safety for Nasdaq, Inc. respond.
Open DCF Calculator for NDAQCompany Overview
Nasdaq, Inc., a technology powerhouse founded in 1971 and based in New York City, is dedicated to supporting capital markets and various other sectors worldwide. Its Market Technology division specializes in fighting financial crime, offering products like Nasdaq Trade Surveillance, a SaaS solution that assists brokers and market participants in meeting compliance requirements and internal surveillance policies. This segment also provides Nasdaq Automated Investigator, a cloud-deployed anti-money laundering tool, and Verafin, a SaaS provider for anti-financial crime management. Furthermore, this division handles a wide array of assets, including cash equities, equity derivatives, global currencies, interest-bearing securities, commodities, energy resources, and digital currencies. The Investment Intelligence segment is responsible for distributing both historical and live market data, creating and licensing Nasdaq-branded financial indexes and products, and delivering valuable investment insights and workflow solutions. Through its Corporate Platforms, Nasdaq manages operational listing venues and furnishes specialized intelligence for investor relations, alongside comprehensive governance services. The Market Services segment covers a broad spectrum of operations, including the trading and clearing of equity derivatives, cash equities, fixed income, and commodities, in addition to providing trade management services. This division operates numerous exchanges and marketplace facilities that accommodate diverse asset classes such as derivatives, commodities, cash equity, debt, structured products, and exchange-traded products, while also offering crucial broker, clearing, settlement, and central depository functionalities. As of December 31, 2021, The Nasdaq Stock Market proudly listed 4,178 companies, specifically 1,632 on The Nasdaq Global Select Market, 1,169 on The Nasdaq Global Market, and 1,377 on The Nasdaq Capital Market. The company adopted its current name, Nasdaq, Inc., in September 2015, having previously been known as The NASDAQ OMX Group, Inc.
Financial Metrics — NDAQ Stock Valuation Data
Revenue/Share (TTM)
$15.43
FCF/Share (TTM)
$3.46
ROIC (TTM)
9.2%
ROE (TTM)
16.3%
P/FCF
27.4x
EV/EBITDA
19.5x
FCF Yield
3.65%
Debt/Equity
0.77x
Based on trailing twelve-month data, NDAQ shows a free cash flow per share of $3.46 and a ROIC of 9.2%, key inputs for stock valuation using the DCF method. The P/FCF ratio of 27.4x and FCF yield of 3.65% are important context metrics when evaluating NDAQ's stock valuation relative to peers.
Frequently Asked Questions
What is the intrinsic value of NDAQ?
Nasdaq, Inc. currently generates $3.46 in free cash flow per share. At the current price of $95.55, a DCF model would discount these cash flows at an appropriate WACC and apply a terminal growth rate to arrive at an intrinsic value. The result depends heavily on your growth and discount rate assumptions — a 1% change in WACC typically shifts the fair value estimate by 10-15%. In MiniValuator the model uses a single discount rate that you can edit directly, 10% by default, rather than a computed WACC.
Is NDAQ undervalued?
NDAQ trades at a P/FCF ratio of 27.4x with a free cash flow yield of 3.65%. This P/FCF is in a moderate range. However, whether NDAQ is truly undervalued requires comparing the DCF intrinsic value to the current market price and evaluating whether the margin of safety is sufficient for your risk tolerance.
How do I value NDAQ stock using DCF?
To perform a DCF valuation on Nasdaq, Inc.: (1) Start with the trailing free cash flow per share ($3.46) as the base, (2) project future FCF growth over 5-10 years based on Financial - Data & Stock Exchanges industry trends and company fundamentals, (3) apply a discount rate (WACC) reflecting NDAQ's risk profile — with a debt-to-equity of 0.77x, capital structure is an important factor, and (4) add a terminal value for cash flows beyond the projection period.
What is DCF valuation and how does it apply to NDAQ?
DCF (Discounted Cash Flow) estimates what a company is worth today based on its future cash generation. For Nasdaq, Inc., this means projecting how much free cash flow the company will produce over the next 5-10 years, shaped by Financial - Data & Stock Exchanges trends, then discounting those amounts to today's dollars. NDAQ's ROIC of 9.2% shows moderate capital returns.
How does WACC affect NDAQ stock valuation?
WACC (Weighted Average Cost of Capital) is the discount rate in a DCF model — it reflects the minimum return investors require. For NDAQ, with a debt-to-equity ratio of 0.77x, the capital structure directly influences WACC. A 1% increase in WACC typically reduces the intrinsic value by 10-15%. At an EV/EBITDA of 19.5x, the market's implied discount rate can be reverse-engineered for comparison. In MiniValuator you set this discount rate yourself as a single editable number, 10% by default, instead of computing a formal WACC.
Learn More
- See NDAQ PE Valuation → — Earnings-based stock valuation using PE ratio analysis
- DCF Methodology — Step-by-step guide to discounted cash flow analysis
- PE Methodology — Guide to PE ratio stock valuation
- WACC — Understanding the discount rate used in DCF
- Margin of Safety — How to evaluate downside protection
- Intrinsic Value — How to evaluate stock fair value
- How to Calculate Intrinsic Value — Complete guide for investors
Related Valuations
All Financial Services valuationsDCF and P/E value NDAQ with different methods and assumptions, so the two conclusions can differ. Compare the P/E fair value.
Price as of 2026-07-29. Financial data from Financial Modeling Prep (trailing twelve months) · Valuation methodology by Charlie Wang.
This is an estimate, not investment advice.