(NDAQ) Nasdaq - Ratings and Ratios

Nasdaq, Inc. (NASDAQ:NDAQ) is a technology-focused provider to capital markets and adjacent industries, organized into three operating segments: Capital Access Platforms, Financial Technology, and Market Services. The firm distributes both historical and real-time market data, licenses Nasdaq-branded indices, and offers a suite of governance, sustainability, and investor-relations solutions. It also runs a portfolio of software platforms-including Verafin (AML/fraud detection), AxiomSL (regulatory reporting), Calypso (cross-asset trading and risk), and a surveillance SaaS-to support compliance, risk management, and trade workflow for exchanges, clearing houses, and institutional participants.

According to Nasdaq’s FY 2023 Form 10-K, total revenue reached approximately **$6.2 billion**, with the Data Services line (historical/real-time market data) contributing roughly **45 %** of that total and delivering an operating margin near **30 %**. The company reported diluted earnings per share of **$2.30**, and its cash-equity and derivatives trading volumes grew **~7 % YoY**, reflecting continued demand for electronic execution and post-trade services. A key sector driver is the accelerating shift toward algorithmic and high-frequency trading, which boosts the premium placed on low-latency data feeds and real-time analytics.

Nasdaq’s growth outlook is contingent on several uncertain factors: (1) **Trading volume volatility**-revenues from exchange and clearing services are highly correlated with global equity and derivatives turnover, which can swing with macro-economic cycles; (2) **Regulatory evolution**-new reporting or surveillance mandates could expand demand for Nasdaq’s SaaS solutions but also raise compliance costs; and (3) **Competitive pressure** from rivals such as Intercontinental Exchange (ICE) and CME Group, which may erode market-share if they launch more integrated data-plus-execution bundles. The recent acquisition of Verafin (2020) has begun to diversify revenue, yet its contribution to total earnings remains modest (<5 % of FY 2023 revenue), so the extent of future cross-selling opportunities is still uncertain.

If you’re interested in a deeper quantitative comparison of Nasdaq’s valuation metrics versus peers, a quick look at **ValueRay** can surface the most recent analyst consensus, forward-looking cash-flow estimates, and scenario-based risk assessments.