Nasdaq, Inc. (NDAQ) Fair Value & PE Analysis
Financial - Data & Stock Exchanges · NASDAQ
Current Price
$94.95
PE Ratio (TTM)
27.4x
Intrinsic Value
$126.35
+24.9% margin of safety
What Is Nasdaq, Inc.'s Fair Value?
As of 2026-07-30, applying a 27.0x earnings multiple to Nasdaq, Inc.'s (NDAQ) earnings per share of $3.49 yields a fair value estimate of $126.35 per share, versus a market price of $94.95.
Fair value from earnings multiples is sensitive to the multiple you choose. Across the sensitivity grid the estimate spans $105.25 to $150.29. This is a relative estimate anchored to earnings, not a statement of fact. For a cash flow based view, see the intrinsic value estimate on the DCF page.
How the PE model works · Recalculate in PE mode · NDAQ intrinsic value (DCF view)
Is Nasdaq, Inc. (NDAQ) Overvalued?
At $94.95, NDAQ trades about 24.9% below its PE-based fair value estimate, a modest discount to its earnings power, though not enough to call it cheap outright.
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 PE valuation
Intrinsic Value
$126.35
Margin of safety
+24.9%
Expected annual return
+5.9%
Base case assumptions: 12.9% annual earnings growth, 27x target PE, 10% discount rate, 5 year projection. Data as of 2026-07-30.
This base case uses default assumptions and is not financial advice. The fair value changes significantly when the target PE or earnings growth rate changes. Open the calculator to set your own assumptions and see the full sensitivity range.
Customize the NDAQ PE valuation
Adjust the target PE, earnings growth, and discount rate to see how the fair value and margin of safety for Nasdaq, Inc. respond.
Open PE 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 PE Stock Valuation Data
PE Ratio (TTM)
27.4x
PEG Ratio
0.86
Earnings Yield
3.67%
ROE (TTM)
16.3%
Revenue/Share (TTM)
$15.43
Dividend Yield
1.18%
Debt/Equity
0.77x
Frequently Asked Questions
What is the PE ratio of NDAQ?
The trailing twelve-month PE ratio of NDAQ reflects how much investors pay per dollar of Nasdaq, Inc.'s earnings. This metric is most useful when compared to Financial - Data & Stock Exchanges peers and the company's own historical range.
Is NDAQ overvalued based on PE ratio?
NDAQ's PE of 27.4x combined with a PEG ratio of 0.86 provides a growth-adjusted perspective. A PEG below 1.0 means the P/E is low relative to the earnings growth rate. Keep in mind that PE-based valuation works best for profitable, mature companies — for high-growth or cyclical Financial - Data & Stock Exchanges, a DCF analysis may be more appropriate.
How do I value NDAQ stock using PE ratio?
To value Nasdaq, Inc. using PE: (1) Compare the current PE (27.4x) against the Financial - Data & Stock Exchanges median to assess relative pricing, (2) check the PEG ratio (0.86) to adjust for growth expectations, (3) review the 5-year PE range to identify where the stock sits historically, and (4) estimate fair value by multiplying a target PE by forward EPS estimates. This relative approach complements DCF's absolute valuation.
What is the PEG ratio of NDAQ?
NDAQ's PEG ratio is 0.86, calculated by dividing the PE ratio (27.4x) by the expected earnings growth rate. A PEG below 1.0 means the P/E is low relative to the expected earnings growth rate. Note that PEG accuracy depends on the reliability of growth estimates.
Should I use PE ratio or DCF for NDAQ stock valuation?
PE ratio gives a quick relative read — how NDAQ is priced versus Financial - Data & Stock Exchanges peers. DCF provides an absolute value based on projected free cash flows. For NDAQ, with a strong ROE of 16.3%, both methods are worth using — PE for a market-relative check, DCF to stress-test whether fundamentals justify the price. Each method has blind spots: PE ignores capital structure and cash flow quality, while DCF is sensitive to growth and discount rate assumptions.
Learn More
- See NDAQ DCF Valuation → — Intrinsic value via Discounted Cash Flow analysis
- PE Methodology — Step-by-step guide to PE ratio stock valuation
- DCF Methodology — Guide to discounted cash flow analysis
- PE Ratio — Understanding the price-to-earnings ratio
- Intrinsic Value — How to evaluate stock fair value
Related PE Valuations
All Financial Services valuationsP/E and DCF value NDAQ with different methods and assumptions, so the two conclusions can differ. Compare the DCF intrinsic value.
Price as of 2026-07-30. Financial data from Financial Modeling Prep (trailing twelve months) · Valuation methodology by Charlie Wang.
This is an estimate, not investment advice.