Intrinsic value of Nasdaq - NDAQ

Previous Close

$69.53

  Intrinsic Value

premium content

  Rating & Target

premium content

  Value-price divergence*

premium content

Previous close

$69.53

 
Intrinsic value premium content
 
Up/down potential premium content
 
Rating premium content
 
Value-price divergence* premium content

Premium access subscription - $499/yr

please register and log in before paying
Our model is not good at valuating stocks of financial companies, such as NDAQ.

*Intrinsic value change (in %) minus stock price change (in %) in the past 12 months.

We calculate the intrinsic value of NDAQ stock by summing up the current values of future distributable cash flows generated by the company and dividing the sum by the number of outstanding shares. As such, the intrinsic value calculation depends entirely on projections. The more accurate your projections of the company's performance are - the more reliable is the intrinsic value calculation result. Please make sure to check the stock valuation input data below and adjust it if necessary. The quality of the output (intrinsic valuation result) is only as good as the quality of the input. See also DISCLAIMERS.

STOCK VALUATION INPUT DATA

Revenue (in 2016), $M
Initial revenue growth rate, %
Terminal revenue growth rate, %
Revenue decline factor
Initial discount rate, %
Discount rate multiplier
Variable cost ratio, %
Fixed operating expenses, $M
Interest rate on debt, %
Effective corporate tax rate, %
Production assets / Revenue, %
Life of production assets, yrs
Working capital / Revenue, %
Revenue / Adjusted assets
Adjusted equity ratio
Cash flow adjustment, % of Revenue
Book value of equity, $M
Shares outstanding, mln
Market capitalization, $bln 11.5

 

FINANCIAL STATEMENTS FORECAST and PRESENT VALUE CALCULATION

Fiscal year
2016(a)
   2017
   2018
   2019
   2020
   2021
   2022
   2023
   2024
   2025
   2026
   2027
   2028
   2029
   2030
   2031
   2032
   2033
   2034
   2035
   2036
   2037
   2038
   2039
   2040
   2041
   2042
   2043
   2044
   2045
   2046

INCOME STATEMENT

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Revenue growth rate, %
  8.87
  12.60
  11.84
  11.16
  10.54
  9.99
  9.49
  9.04
  8.64
  8.27
  7.94
  7.65
  7.38
  7.15
  6.93
  6.74
  6.56
  6.41
  6.27
  6.14
  6.03
  5.92
  5.83
  5.75
  5.67
  5.61
  5.55
  5.49
  5.44
  5.40
  5.36
Revenue, $m
  3,705
  4,172
  4,666
  5,186
  5,733
  6,305
  6,904
  7,528
  8,178
  8,854
  9,558
  10,289
  11,049
  11,838
  12,659
  13,512
  14,399
  15,321
  16,282
  17,282
  18,323
  19,409
  20,540
  21,721
  22,953
  24,240
  25,585
  26,989
  28,458
  29,994
  31,601
Variable operating expenses, $m
 
  3,211
  3,520
  3,846
  4,188
  4,546
  4,920
  5,310
  5,716
  6,139
  6,579
  6,434
  6,909
  7,403
  7,916
  8,449
  9,004
  9,581
  10,181
  10,807
  11,458
  12,137
  12,844
  13,583
  14,353
  15,158
  15,999
  16,877
  17,796
  18,756
  19,761
Fixed operating expenses, $m
 
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
Total operating expenses, $m
  3,444
  3,211
  3,520
  3,846
  4,188
  4,546
  4,920
  5,310
  5,716
  6,139
  6,579
  6,434
  6,909
  7,403
  7,916
  8,449
  9,004
  9,581
  10,181
  10,807
  11,458
  12,137
  12,844
  13,583
  14,353
  15,158
  15,999
  16,877
  17,796
  18,756
  19,761
Operating income, $m
  261
  960
  1,145
  1,340
  1,545
  1,760
  1,984
  2,218
  2,461
  2,715
  2,978
  3,855
  4,140
  4,435
  4,743
  5,062
  5,395
  5,741
  6,100
  6,475
  6,865
  7,272
  7,696
  8,138
  8,600
  9,082
  9,586
  10,112
  10,662
  11,238
  11,840
EBITDA, $m
  431
  1,639
  1,833
  2,038
  2,253
  2,477
  2,713
  2,958
  3,213
  3,479
  3,755
  4,042
  4,341
  4,651
  4,974
  5,309
  5,657
  6,020
  6,397
  6,790
  7,199
  7,626
  8,070
  8,534
  9,019
  9,524
  10,052
  10,604
  11,181
  11,785
  12,416
Interest expense (income), $m
  119
  126
  165
  206
  249
  294
  341
  391
  442
  496
  552
  610
  670
  733
  798
  865
  936
  1,009
  1,085
  1,164
  1,247
  1,333
  1,422
  1,516
  1,613
  1,715
  1,821
  1,932
  2,048
  2,169
  2,296
Earnings before tax, $m
  136
  834
  980
  1,135
  1,296
  1,466
  1,643
  1,827
  2,019
  2,219
  2,427
  3,245
  3,470
  3,703
  3,945
  4,197
  4,459
  4,731
  5,015
  5,310
  5,618
  5,939
  6,273
  6,622
  6,987
  7,367
  7,765
  8,180
  8,614
  9,069
  9,544
Tax expense, $m
  28
  225
  265
  306
  350
  396
  444
  493
  545
  599
  655
  876
  937
  1,000
  1,065
  1,133
  1,204
  1,277
  1,354
  1,434
  1,517
  1,604
  1,694
  1,788
  1,886
  1,989
  2,096
  2,209
  2,326
  2,449
  2,577
Net income, $m
  108
  609
  716
  828
  946
  1,070
  1,199
  1,334
  1,474
  1,620
  1,772
  2,369
  2,533
  2,703
  2,880
  3,064
  3,255
  3,454
  3,661
  3,877
  4,101
  4,335
  4,580
  4,834
  5,100
  5,378
  5,668
  5,971
  6,289
  6,620
  6,967

BALANCE SHEET

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Cash and short-term investments, $m
  648
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
Total assets, $m
  14,150
  15,226
  17,028
  18,928
  20,923
  23,013
  25,196
  27,473
  29,846
  32,314
  34,882
  37,550
  40,323
  43,205
  46,200
  49,313
  52,550
  55,918
  59,422
  63,071
  66,873
  70,834
  74,965
  79,274
  83,772
  88,468
  93,374
  98,502
  103,862
  109,468
  115,333
Adjusted assets (=assets-cash), $m
  13,502
  15,226
  17,028
  18,928
  20,923
  23,013
  25,196
  27,473
  29,846
  32,314
  34,882
  37,550
  40,323
  43,205
  46,200
  49,313
  52,550
  55,918
  59,422
  63,071
  66,873
  70,834
  74,965
  79,274
  83,772
  88,468
  93,374
  98,502
  103,862
  109,468
  115,333
Revenue / Adjusted assets
  0.274
  0.274
  0.274
  0.274
  0.274
  0.274
  0.274
  0.274
  0.274
  0.274
  0.274
  0.274
  0.274
  0.274
  0.274
  0.274
  0.274
  0.274
  0.274
  0.274
  0.274
  0.274
  0.274
  0.274
  0.274
  0.274
  0.274
  0.274
  0.274
  0.274
  0.274
Average production assets, $m
  2,208
  2,282
  2,552
  2,837
  3,136
  3,449
  3,776
  4,118
  4,473
  4,843
  5,228
  5,628
  6,044
  6,475
  6,924
  7,391
  7,876
  8,381
  8,906
  9,453
  10,023
  10,616
  11,236
  11,881
  12,556
  13,259
  13,995
  14,763
  15,567
  16,407
  17,286
Working capital, $m
  478
  -192
  -215
  -239
  -264
  -290
  -318
  -346
  -376
  -407
  -440
  -473
  -508
  -545
  -582
  -622
  -662
  -705
  -749
  -795
  -843
  -893
  -945
  -999
  -1,056
  -1,115
  -1,177
  -1,242
  -1,309
  -1,380
  -1,454
Total debt, $m
  3,603
  4,719
  5,883
  7,111
  8,399
  9,749
  11,160
  12,631
  14,163
  15,758
  17,417
  19,140
  20,932
  22,793
  24,728
  26,739
  28,830
  31,006
  33,270
  35,627
  38,083
  40,642
  43,310
  46,094
  49,000
  52,033
  55,203
  58,515
  61,978
  65,599
  69,388
Total liabilities, $m
  8,720
  9,836
  11,000
  12,228
  13,516
  14,866
  16,277
  17,748
  19,280
  20,875
  22,534
  24,257
  26,049
  27,910
  29,845
  31,856
  33,947
  36,123
  38,387
  40,744
  43,200
  45,759
  48,427
  51,211
  54,117
  57,150
  60,320
  63,632
  67,095
  70,716
  74,505
Total equity, $m
  5,430
  5,390
  6,028
  6,701
  7,407
  8,146
  8,919
  9,726
  10,565
  11,439
  12,348
  13,293
  14,274
  15,295
  16,355
  17,457
  18,603
  19,795
  21,036
  22,327
  23,673
  25,075
  26,538
  28,063
  29,655
  31,318
  33,055
  34,870
  36,767
  38,752
  40,828
Total liabilities and equity, $m
  14,150
  15,226
  17,028
  18,929
  20,923
  23,012
  25,196
  27,474
  29,845
  32,314
  34,882
  37,550
  40,323
  43,205
  46,200
  49,313
  52,550
  55,918
  59,423
  63,071
  66,873
  70,834
  74,965
  79,274
  83,772
  88,468
  93,375
  98,502
  103,862
  109,468
  115,333
Debt-to-equity ratio
  0.664
  0.880
  0.980
  1.060
  1.130
  1.200
  1.250
  1.300
  1.340
  1.380
  1.410
  1.440
  1.470
  1.490
  1.510
  1.530
  1.550
  1.570
  1.580
  1.600
  1.610
  1.620
  1.630
  1.640
  1.650
  1.660
  1.670
  1.680
  1.690
  1.690
  1.700
Adjusted equity ratio
  0.354
  0.354
  0.354
  0.354
  0.354
  0.354
  0.354
  0.354
  0.354
  0.354
  0.354
  0.354
  0.354
  0.354
  0.354
  0.354
  0.354
  0.354
  0.354
  0.354
  0.354
  0.354
  0.354
  0.354
  0.354
  0.354
  0.354
  0.354
  0.354
  0.354
  0.354

CASH FLOW

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Net income, $m
  108
  609
  716
  828
  946
  1,070
  1,199
  1,334
  1,474
  1,620
  1,772
  2,369
  2,533
  2,703
  2,880
  3,064
  3,255
  3,454
  3,661
  3,877
  4,101
  4,335
  4,580
  4,834
  5,100
  5,378
  5,668
  5,971
  6,289
  6,620
  6,967
Depreciation, amort., depletion, $m
  170
  679
  688
  697
  707
  718
  729
  740
  752
  764
  777
  188
  201
  216
  231
  246
  263
  279
  297
  315
  334
  354
  375
  396
  419
  442
  466
  492
  519
  547
  576
Funds from operations, $m
  677
  1,288
  1,403
  1,525
  1,654
  1,788
  1,928
  2,074
  2,226
  2,384
  2,548
  2,557
  2,734
  2,919
  3,111
  3,310
  3,518
  3,733
  3,958
  4,192
  4,435
  4,689
  4,954
  5,230
  5,519
  5,820
  6,135
  6,464
  6,807
  7,167
  7,543
Change in working capital, $m
  -45
  -21
  -23
  -24
  -25
  -26
  -28
  -29
  -30
  -31
  -32
  -34
  -35
  -36
  -38
  -39
  -41
  -42
  -44
  -46
  -48
  -50
  -52
  -54
  -57
  -59
  -62
  -65
  -68
  -71
  -74
Cash from operations, $m
  722
  1,377
  1,426
  1,549
  1,679
  1,814
  1,955
  2,102
  2,256
  2,415
  2,581
  2,590
  2,769
  2,955
  3,148
  3,349
  3,558
  3,776
  4,002
  4,238
  4,483
  4,739
  5,006
  5,285
  5,576
  5,879
  6,197
  6,528
  6,875
  7,238
  7,617
Maintenance CAPEX, $m
  0
  -68
  -76
  -85
  -95
  -105
  -115
  -126
  -137
  -149
  -161
  -174
  -188
  -201
  -216
  -231
  -246
  -263
  -279
  -297
  -315
  -334
  -354
  -375
  -396
  -419
  -442
  -466
  -492
  -519
  -547
New CAPEX, $m
  -134
  -255
  -270
  -285
  -299
  -313
  -327
  -341
  -356
  -370
  -385
  -400
  -416
  -432
  -449
  -467
  -485
  -505
  -525
  -547
  -570
  -594
  -619
  -646
  -674
  -704
  -735
  -768
  -803
  -840
  -879
Cash from investing activities, $m
  -1,657
  -323
  -346
  -370
  -394
  -418
  -442
  -467
  -493
  -519
  -546
  -574
  -604
  -633
  -665
  -698
  -731
  -768
  -804
  -844
  -885
  -928
  -973
  -1,021
  -1,070
  -1,123
  -1,177
  -1,234
  -1,295
  -1,359
  -1,426
Free cash flow, $m
  -935
  1,054
  1,080
  1,180
  1,285
  1,396
  1,513
  1,635
  1,763
  1,896
  2,035
  2,016
  2,166
  2,322
  2,484
  2,652
  2,827
  3,009
  3,197
  3,394
  3,598
  3,811
  4,033
  4,264
  4,505
  4,757
  5,019
  5,293
  5,579
  5,879
  6,191
Issuance/(repayment) of debt, $m
  2,456
  1,116
  1,165
  1,227
  1,289
  1,350
  1,410
  1,471
  1,533
  1,595
  1,658
  1,724
  1,791
  1,862
  1,935
  2,011
  2,091
  2,175
  2,264
  2,357
  2,456
  2,559
  2,668
  2,784
  2,906
  3,034
  3,169
  3,312
  3,463
  3,622
  3,789
Issuance/(repurchase) of shares, $m
  -100
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
Cash from financing (excl. dividends), $m  
  1,202
  1,116
  1,165
  1,227
  1,289
  1,350
  1,410
  1,471
  1,533
  1,595
  1,658
  1,724
  1,791
  1,862
  1,935
  2,011
  2,091
  2,175
  2,264
  2,357
  2,456
  2,559
  2,668
  2,784
  2,906
  3,034
  3,169
  3,312
  3,463
  3,622
  3,789
Total cash flow (excl. dividends), $m
  261
  2,169
  2,244
  2,407
  2,574
  2,746
  2,924
  3,106
  3,295
  3,491
  3,693
  3,740
  3,957
  4,183
  4,418
  4,663
  4,918
  5,184
  5,461
  5,751
  6,054
  6,371
  6,702
  7,048
  7,411
  7,791
  8,189
  8,605
  9,042
  9,500
  9,980
Retained Cash Flow (-), $m
  179
  -608
  -638
  -672
  -706
  -740
  -773
  -806
  -840
  -874
  -909
  -945
  -982
  -1,020
  -1,060
  -1,102
  -1,146
  -1,192
  -1,241
  -1,292
  -1,346
  -1,402
  -1,462
  -1,525
  -1,592
  -1,663
  -1,737
  -1,815
  -1,898
  -1,985
  -2,076
Prev. year cash balance distribution, $m
 
  648
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
Cash flow adjustment, $m
 
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
Cash available for distribution, $m
 
  2,210
  1,606
  1,734
  1,868
  2,006
  2,151
  2,300
  2,456
  2,617
  2,784
  2,795
  2,976
  3,163
  3,358
  3,561
  3,772
  3,992
  4,221
  4,459
  4,708
  4,968
  5,239
  5,523
  5,819
  6,128
  6,452
  6,790
  7,145
  7,516
  7,904
Discount rate, %
 
  6.40
  6.72
  7.06
  7.41
  7.78
  8.17
  8.58
  9.01
  9.46
  9.93
  10.42
  10.95
  11.49
  12.07
  12.67
  13.31
  13.97
  14.67
  15.40
  16.17
  16.98
  17.83
  18.72
  19.66
  20.64
  21.67
  22.76
  23.89
  25.09
  26.34
PV of cash for distribution, $m
 
  2,077
  1,410
  1,414
  1,403
  1,380
  1,343
  1,293
  1,232
  1,160
  1,080
  939
  856
  769
  681
  595
  511
  432
  359
  293
  235
  184
  142
  107
  78
  56
  39
  27
  18
  11
  7
Current shareholders' claim on cash, %
  100
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0

Nasdaq, Inc. provides trading, clearing, exchange technology, regulatory, securities listing, information, and public company services worldwide. It operates in four segments: Market Services, Listing Services, Information Services, and Technology Solutions. The Market Services segment offers equity derivative trading and clearing; cash equity trading; fixed income, currency, and commodities trading and clearing; and access and broker services. This segment operates various exchanges and other marketplace facilities across various asset classes, including derivatives, commodities, cash equity, debt, structured products, and exchange traded products; and provides clearing, settlement, and central depository services, as well as offers transaction-based platforms. The Listing Services segment operates various listing platforms, which offer capital raising solutions for private and public companies. Its primary listing markets include The NASDAQ Stock Market, and the Nasdaq Nordic and Nasdaq Baltic exchanges. The Information Services segment sells and distributes historical and real-time quote and trade information to market participants and data distributors; and develops and licenses Nasdaq branded indexes, associated derivatives, and financial products, as well as provides custom calculation services for third-party clients. The Technology Solutions segment offers corporate solutions in investor relations, public relations, multimedia solutions, and governance. It also provides technology solutions for trading, clearing, settlement, surveillance, and information dissemination; facility management and systems integration, and advisory services; and broker services, as well as enterprise governance, risk management, and compliance software and services. The company was formerly known as The NASDAQ OMX Group, Inc. and changed its name to Nasdaq, Inc. in September 2015. Nasdaq, Inc. was founded in 1971 and is headquartered in New York, New York.

FINANCIAL RATIOS  of  Nasdaq (NDAQ)

Valuation Ratios
P/E Ratio 107.2
Price to Sales 3.1
Price to Book 2.1
Price to Tangible Book
Price to Cash Flow 16
Price to Free Cash Flow 19.7
Growth Rates
Sales Growth Rate 8.9%
Sales - 3 Yr. Growth Rate %
EPS Growth Rate %
EPS - 3 Yr. Growth Rate %
Capital Spending Gr. Rate 0.8%
Cap. Spend. - 3 Yr. Gr. Rate 3.1%
Financial Strength
Quick Ratio NaN
Current Ratio 0.9
LT Debt to Equity 66.4%
Total Debt to Equity 66.4%
Interest Coverage 2
Management Effectiveness
Return On Assets 1.6%
Ret/ On Assets - 3 Yr. Avg. 3.2%
Return On Total Capital 1.3%
Ret/ On T. Cap. - 3 Yr. Avg. 3.8%
Return On Equity 2%
Return On Equity - 3 Yr. Avg. 5.5%
Asset Turnover 0.3
Profitability Ratios
Gross Margin 61.5%
Gross Margin - 3 Yr. Avg. 60.6%
EBITDA Margin 11.5%
EBITDA Margin - 3 Yr. Avg. 20.4%
Operating Margin 7%
Oper. Margin - 3 Yr. Avg. 16.1%
Pre-Tax Margin 3.7%
Pre-Tax Margin - 3 Yr. Avg. 13.1%
Net Profit Margin 2.9%
Net Profit Margin - 3 Yr. Avg. 9.1%
Effective Tax Rate 20.6%
Eff/ Tax Rate - 3 Yr. Avg. 27.8%
Payout Ratio 185.2%

NDAQ stock valuation input parameters

Revenue. Company's revenue (or sales) is always the starting point of any cash flow forecast. In the NDAQ stock intrinsic value calculation we used $3705 million for the last fiscal year's total revenue generated by Nasdaq. The default revenue input number comes from 2016 income statement of Nasdaq. You may change it if you feel that it should be adjusted for some unusual circumstances that are not expected to be repeated in the future or if you already know (from interim financial statements, for example) that this year's revenue is going to be quite different.

Revenue growth rate. Forecasted future revenue growth rate is the most important input parameter for the intrinsic value calculation. Unlike other input parameters that are reasonably expected to be in line with their historic averages or their historic trends, the revenue growth rate by and large is a wild card: nobody really knows what the company's revenue will be in the future. Of course, the level of unpredictability is different for different industries (utility companies being the most predictable and, thus, less risky).
    We use three input parameters to forecast the revenue growth rate in our NDAQ stock valuation model: a) initial revenue growth rate of 12.6% whose default value is the revenue growth rate in the most recent quarter compared to the quarterly revenue a year ago; b) terminal revenue growth rate of 5% whose default value is chosen to be close to the average nominal (i.e. not adjusted for inflation) GDP growth rate; and c) revenue decline factor of 0.9, which stipulates that revenue growth rate in each forecasted year will be equal to the difference of the revenue growth rate in the preceding year and the terminal revenue growth rate multiplied by this revenue decline factor (with the passage of time the revenue growth rate will be approaching the terminal revenue growth rate, but not quite reaching it - though the difference could be infinitesimally small).
    At the revenue decline factor of 1, the future revenue growth rate is forecasted to be constant and equal to the initial revenue growth rate. The smaller the revenue decline factor, the faster the revenue growth rate will approach the terminal revenue growth.

Discount rate. The discount rate is used for determining the present value of future cash flows: future cash flows are "discounted" as at normal conditions (that translate into positive expected return on investment) one dollar today is worth more than the same dollar in the future. Unlike all other valuation models, we use variable discount rate, i.e. it increases for each consecutive year. This is done to account for higher risk of cash flows coming in further in the future.
    The initial discount rate of 6.4%, whose default value for NDAQ is calculated based on our internal credit rating of Nasdaq, is applied to the cash flow expected to be received a year from now (well, actually, to be precise, in the financial year following the base year - the last year for which we have financial statements). For each consecutive year the discount rate is multiplied by the discount rate multiplier of 1.05, e.i. each year it increases by 5%. Feel free to change this number to correspond to your level of risk assessment of Nasdaq.
    By the way, it is easy to set the discount rate to be constant (this would make comparison with other valuation models easier): just set the discount rate multiplier equal to 1 and chose the magnitude of the initial discount rate to your liking.

Variable cost ratio is the ratio of variable costs (i.e. costs that fluctuate with fluctuation of the volume of production) to the revenue expressed as a percentage. In the calculation of intrinsic value of NDAQ stock the variable cost ratio is equal to 78.8%.

Fixed operating expenses is just that - expenses that are not dependant on the volume of production. They are set to $0 million in the base year in the intrinsic value calculation for NDAQ stock. These expenses increase with the level of inflation in subsequent years.

Interest rate on debt is the average all-in rate of interest paid by the company on its debt. It is set at 3.5% for Nasdaq.

Corporate tax rate of 27% is the nominal tax rate for Nasdaq. In reality, companies find ways to pay much less taxes than that or not to pay them at all.

Cash flow adjustment could be used for any adjustment the investor deems necessary. Most commonly we use this field to account for stock options-related effects in excess of what is reported on the company's income statement. The cash flow adjustment is expressed as a percentage of the revenue, and in the current valuation of the NDAQ stock is equal to 0%.

Production assets are the company's assets used for manufacturing products or provision of services. In the valuation model input table they are expressed as a percentage of revenue and for NDAQ are equal to 54.7%.

Life of production assets of 56.1 years is the average useful life of capital assets used in Nasdaq operations. It is used to calculate yearly capital expenditures needed to keep these assets in good order - we call it the maintenance CAPEX.

Working capital is the difference between the company's current assets and liabilities. In the model we use the ratio of working capital to revenue, which for NDAQ is equal to -4.6%. A negative number means that the company is apt at using financial resources of its suppliers and customers; a large positive number, on the other hand, means that it either provides in-kind financing to others or is not good at managing its inventories.

Book value of equity - $5430 million for Nasdaq - is used in calculation of the "floor" for intrinsic valuation based on the discounted cash flow (DCF) method. Even if the prospects are very bad for a company, its assets could always be sold now for their current fair market value.

Shares outstanding of 165.143 million for Nasdaq is needed to calculate the intrinsic value of one share.

Market capitalization is used here only for reference purposes and as a quick check that the share price and the number of shares outstanding numbers are correct - something especially to be cognizant about at stock splits. So, the market capitalization of Nasdaq at the current share price and the inputted number of shares is $11.5 billion.


Premium access subscription - $499/yr

please register and log in before paying
RELATED COMPANIES Price Int.Val. Rating
ICE Intercontinent 64.15 prem.  prem.
CBOE CBOE Holdings 88.57 prem.  prem.
CME CME Group Cl A 124.06 prem.  prem.

COMPANY NEWS

▶ Why Sweden's IPO Market Is So Hot Right Now   [12:30PM  Bloomberg Video]
▶ Nasdaq Halts Wins Finance Holdings Inc.   [Jun-07-17 01:48PM  GlobeNewswire]
▶ ETFs with exposure to Nasdaq, Inc. : June 6, 2017   [Jun-06-17 11:45AM  Capital Cube]
▶ Nasdaq May 2017 Volumes   [Jun-05-17 04:15PM  GlobeNewswire]
▶ [$$] Secondary Direct Manager Listings   [09:46AM  The Wall Street Journal]
▶ Workday: Cramer's Top Takeaways   [06:27AM  TheStreet.com]
▶ [$$] Spotify Rule Would Help New York Stock Exchange Woo Unicorns   [May-26-17 11:33PM  The Wall Street Journal]
▶ This is a stock picker's market   [04:00PM  CNBC Videos]
▶ Bitcoin Price Spikes to $2700, then Loses $400 in Hours   [May-25-17 03:01PM  Investopedia]
▶ These stocks have gains when the Nasdaq 100 is up   [May-24-17 04:15PM  CNBC Videos]
Stock chart of NDAQ Financial statements of NDAQ Annual reports of NDAQ
Valuation of Stocks

The paper VALUATION OF STOCKS: The Quest for Intrinsic Value provides a detailed description of our valuation model and discloses the calculation algorithm.

FREE DOWNLOAD
Follow us on:   twitter   twitter   twitter   twitter

VALUATION THEORY       ASSET ALLOCATION

About X-FIN       Site news       Privacy policy       Terms of use       FAQ

Copyright © X-FIN.com 2005-2017. All rigths reserved.