| Valuation method | Value, £ | Upside, % |
|---|---|---|
| Artificial intelligence (AI) | 46.70 | -52 |
| Intrinsic value (DCF) | 32.93 | -66 |
| Graham-Dodd Method | n/a | |
| Graham Formula | 43.10 | -55 |
Nasdaq, Inc. is a leading global technology company serving capital markets and other industries. Headquartered in New York, Nasdaq operates across four key segments: Market Technology, Investment Intelligence, Corporate Platforms, and Market Services. The company provides critical financial infrastructure, including trading platforms, market surveillance tools, and anti-financial crime solutions like Verafin and Nasdaq Trade Surveillance. As of 2021, Nasdaq listed 4,178 companies across its Global Select, Global Market, and Capital Market tiers. Beyond listings, Nasdaq offers index licensing, market data, and investor relations solutions, positioning itself as a comprehensive financial services provider. With a strong presence in derivatives, commodities, cash equities, and digital assets, Nasdaq plays a pivotal role in global financial markets. The company's diversified revenue streams and technological innovation make it a cornerstone of modern financial infrastructure, serving brokers, corporations, and investors worldwide.
Nasdaq presents an attractive investment opportunity due to its diversified revenue streams, strong market position, and recurring SaaS-based income from its Market Technology segment. The company benefits from high switching costs in exchange operations and index licensing, providing stable cash flows. However, risks include exposure to cyclical trading volumes, regulatory changes in financial markets, and competition from alternative trading platforms. With a market cap of $47.1 billion and a beta of 1.008, Nasdaq offers moderate volatility relative to the market. The company's $1.1 billion net income and $1.93 diluted EPS demonstrate profitability, while its $0.96 dividend provides income potential. Investors should monitor debt levels ($9.9 billion) and capital expenditures ($207 million) as the company invests in technology and expansion.
Nasdaq maintains competitive advantages through its first-mover status in electronic trading, strong brand recognition, and network effects from its listed companies. The company's vertical integration - combining exchange operations with technology solutions - creates synergies competitors struggle to match. Nasdaq's Market Technology segment, particularly its anti-financial crime tools, benefits from regulatory tailwinds as financial surveillance requirements increase globally. However, the company faces pressure from low-cost trading platforms and decentralized finance alternatives. Nasdaq's index business competes with larger players like MSCI and S&P Global, though its focus on technology-driven indexes differentiates its offerings. The company's corporate solutions business competes with specialized IR firms but benefits from integration with its listing platform. Nasdaq's main challenges include maintaining technology leadership against fintech disruptors and managing the transition of trading volumes to dark pools and alternative venues while defending its core exchange business.