Is Nasdaq Inc (NDAQ) overvalued?
On Equity Rank's model estimate, NDAQ trades 61% above its fair value. Nasdaq Inc (NDAQ) last closed at $107.12; the multi-method model fair value is $66.39.
| Price | Model fair value | Price vs model |
|---|---|---|
| $107.12 | $66.39 | 61% above |
What the answer rests on
- 1 of 10 valuation methods put NDAQ's value above its price and 9 put it below, so the methods mostly agree.
- To justify today's price, NDAQ's free cash flow would need to grow about 11.7% a year for ten years (a reverse discounted cash flow). Over the last three years it actually grew 8.6% a year.
- NDAQ trades at 30.0 times its last year's earnings, against a median of 27.7 for 8 profitable Fintech companies.
- Over the past year the price sat below the model fair value on 0% of trading days. The gap ranged from 19% above to 66% above the model fair value.
Read this before relying on it
The model fair value is an estimate from published financial statements. It is not a forecast of where the price goes, and it can be wrong. Within 10% either side we call it close to fair value: valuation models are not precise enough to read more into a smaller gap. Our own lists have no proven edge over the market yet; the live record shows every result, misses included.
Every valuation method behind NDAQ's fair value · What prices assume · Other companies