Intrinsic value of Nasdaq - NDAQ

Previous Close

$74.75

  Intrinsic Value

$110.77

stock screener

  Rating & Target

buy

+48%

  Value-price divergence*

+29%

Previous close

$74.75

 
Intrinsic value

$110.77

 
Up/down potential

+48%

 
Rating

buy

 
Value-price divergence*

+29%

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 12.6

 

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
  11.50
  10.85
  10.27
  9.74
  9.26
  8.84
  8.45
  8.11
  7.80
  7.52
  7.27
  7.04
  6.84
  6.65
  6.49
  6.34
  6.20
  6.08
  5.98
  5.88
  5.79
  5.71
  5.64
  5.58
  5.52
  5.47
  5.42
  5.38
  5.34
  5.31
Revenue, $m
  3,705
  4,131
  4,579
  5,049
  5,541
  6,054
  6,590
  7,147
  7,726
  8,329
  8,955
  9,606
  10,282
  10,985
  11,715
  12,475
  13,266
  14,089
  14,946
  15,839
  16,770
  17,741
  18,755
  19,813
  20,917
  22,072
  23,278
  24,540
  25,860
  27,241
  28,686
Variable operating expenses, $m
 
  3,186
  3,466
  3,760
  4,068
  4,389
  4,723
  5,072
  5,434
  5,811
  6,202
  6,007
  6,429
  6,869
  7,326
  7,801
  8,296
  8,810
  9,346
  9,905
  10,487
  11,094
  11,728
  12,389
  13,080
  13,802
  14,557
  15,345
  16,171
  17,034
  17,938
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
  3,186
  3,466
  3,760
  4,068
  4,389
  4,723
  5,072
  5,434
  5,811
  6,202
  6,007
  6,429
  6,869
  7,326
  7,801
  8,296
  8,810
  9,346
  9,905
  10,487
  11,094
  11,728
  12,389
  13,080
  13,802
  14,557
  15,345
  16,171
  17,034
  17,938
Operating income, $m
  261
  945
  1,113
  1,289
  1,473
  1,666
  1,866
  2,075
  2,292
  2,518
  2,752
  3,599
  3,852
  4,116
  4,389
  4,674
  4,970
  5,279
  5,600
  5,935
  6,283
  6,647
  7,027
  7,423
  7,837
  8,270
  8,722
  9,194
  9,689
  10,206
  10,748
EBITDA, $m
  431
  1,630
  1,807
  1,992
  2,186
  2,389
  2,600
  2,820
  3,048
  3,286
  3,533
  3,790
  4,057
  4,334
  4,622
  4,922
  5,234
  5,559
  5,897
  6,249
  6,617
  7,000
  7,399
  7,817
  8,253
  8,708
  9,184
  9,682
  10,203
  10,747
  11,318
Interest expense (income), $m
  119
  144
  185
  227
  272
  318
  366
  417
  469
  524
  581
  640
  701
  765
  831
  900
  972
  1,046
  1,124
  1,205
  1,289
  1,377
  1,468
  1,564
  1,664
  1,768
  1,877
  1,991
  2,110
  2,234
  2,364
Earnings before tax, $m
  136
  801
  928
  1,062
  1,202
  1,348
  1,500
  1,658
  1,823
  1,994
  2,172
  2,959
  3,151
  3,351
  3,558
  3,774
  3,999
  4,232
  4,476
  4,730
  4,994
  5,270
  5,558
  5,859
  6,173
  6,502
  6,845
  7,204
  7,579
  7,972
  8,384
Tax expense, $m
  28
  216
  251
  287
  325
  364
  405
  448
  492
  538
  586
  799
  851
  905
  961
  1,019
  1,080
  1,143
  1,209
  1,277
  1,348
  1,423
  1,501
  1,582
  1,667
  1,755
  1,848
  1,945
  2,046
  2,153
  2,264
Net income, $m
  108
  585
  678
  775
  877
  984
  1,095
  1,210
  1,331
  1,456
  1,585
  2,160
  2,300
  2,446
  2,597
  2,755
  2,919
  3,090
  3,267
  3,453
  3,646
  3,847
  4,058
  4,277
  4,507
  4,746
  4,997
  5,259
  5,533
  5,820
  6,120

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
  15,077
  16,713
  18,428
  20,223
  22,097
  24,049
  26,083
  28,198
  30,397
  32,682
  35,057
  37,525
  40,090
  42,757
  45,530
  48,416
  51,420
  54,548
  57,808
  61,206
  64,750
  68,448
  72,309
  76,340
  80,553
  84,957
  89,562
  94,378
  99,418
  104,693
Adjusted assets (=assets-cash), $m
  13,502
  15,077
  16,713
  18,428
  20,223
  22,097
  24,049
  26,083
  28,198
  30,397
  32,682
  35,057
  37,525
  40,090
  42,757
  45,530
  48,416
  51,420
  54,548
  57,808
  61,206
  64,750
  68,448
  72,309
  76,340
  80,553
  84,957
  89,562
  94,378
  99,418
  104,693
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
  2,462
  2,729
  3,009
  3,302
  3,608
  3,927
  4,259
  4,605
  4,964
  5,337
  5,725
  6,128
  6,547
  6,982
  7,435
  7,907
  8,397
  8,908
  9,440
  9,995
  10,574
  11,178
  11,808
  12,467
  13,155
  13,874
  14,626
  15,412
  16,235
  17,097
Working capital, $m
  478
  -190
  -211
  -232
  -255
  -279
  -303
  -329
  -355
  -383
  -412
  -442
  -473
  -505
  -539
  -574
  -610
  -648
  -688
  -729
  -771
  -816
  -863
  -911
  -962
  -1,015
  -1,071
  -1,129
  -1,190
  -1,253
  -1,320
Total debt, $m
  3,603
  4,623
  5,679
  6,788
  7,947
  9,157
  10,419
  11,732
  13,099
  14,519
  15,996
  17,530
  19,124
  20,781
  22,504
  24,296
  26,160
  28,100
  30,121
  32,227
  34,422
  36,711
  39,100
  41,594
  44,199
  46,920
  49,765
  52,740
  55,851
  59,107
  62,515
Total liabilities, $m
  8,720
  9,740
  10,796
  11,905
  13,064
  14,274
  15,536
  16,849
  18,216
  19,636
  21,113
  22,647
  24,241
  25,898
  27,621
  29,413
  31,277
  33,217
  35,238
  37,344
  39,539
  41,828
  44,217
  46,711
  49,316
  52,037
  54,882
  57,857
  60,968
  64,224
  67,632
Total equity, $m
  5,430
  5,337
  5,916
  6,524
  7,159
  7,822
  8,514
  9,233
  9,982
  10,760
  11,569
  12,410
  13,284
  14,192
  15,136
  16,118
  17,139
  18,203
  19,310
  20,464
  21,667
  22,921
  24,231
  25,597
  27,025
  28,516
  30,075
  31,705
  33,410
  35,194
  37,061
Total liabilities and equity, $m
  14,150
  15,077
  16,712
  18,429
  20,223
  22,096
  24,050
  26,082
  28,198
  30,396
  32,682
  35,057
  37,525
  40,090
  42,757
  45,531
  48,416
  51,420
  54,548
  57,808
  61,206
  64,749
  68,448
  72,308
  76,341
  80,553
  84,957
  89,562
  94,378
  99,418
  104,693
Debt-to-equity ratio
  0.664
  0.870
  0.960
  1.040
  1.110
  1.170
  1.220
  1.270
  1.310
  1.350
  1.380
  1.410
  1.440
  1.460
  1.490
  1.510
  1.530
  1.540
  1.560
  1.570
  1.590
  1.600
  1.610
  1.620
  1.640
  1.650
  1.650
  1.660
  1.670
  1.680
  1.690
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
  585
  678
  775
  877
  984
  1,095
  1,210
  1,331
  1,456
  1,585
  2,160
  2,300
  2,446
  2,597
  2,755
  2,919
  3,090
  3,267
  3,453
  3,646
  3,847
  4,058
  4,277
  4,507
  4,746
  4,997
  5,259
  5,533
  5,820
  6,120
Depreciation, amort., depletion, $m
  170
  685
  694
  703
  713
  723
  734
  745
  756
  768
  781
  191
  204
  218
  233
  248
  264
  280
  297
  315
  333
  352
  373
  394
  416
  438
  462
  488
  514
  541
  570
Funds from operations, $m
  677
  1,269
  1,371
  1,478
  1,590
  1,707
  1,829
  1,955
  2,087
  2,224
  2,366
  2,351
  2,505
  2,664
  2,830
  3,003
  3,183
  3,370
  3,564
  3,767
  3,979
  4,200
  4,430
  4,671
  4,922
  5,185
  5,459
  5,746
  6,047
  6,361
  6,690
Change in working capital, $m
  -45
  -20
  -21
  -22
  -23
  -24
  -25
  -26
  -27
  -28
  -29
  -30
  -31
  -32
  -34
  -35
  -36
  -38
  -39
  -41
  -43
  -45
  -47
  -49
  -51
  -53
  -56
  -58
  -61
  -64
  -66
Cash from operations, $m
  722
  1,289
  1,392
  1,500
  1,613
  1,731
  1,853
  1,981
  2,113
  2,251
  2,395
  2,381
  2,536
  2,697
  2,864
  3,038
  3,219
  3,407
  3,604
  3,808
  4,022
  4,244
  4,477
  4,719
  4,973
  5,238
  5,515
  5,804
  6,107
  6,424
  6,756
Maintenance CAPEX, $m
  0
  -74
  -82
  -91
  -100
  -110
  -120
  -131
  -142
  -153
  -165
  -178
  -191
  -204
  -218
  -233
  -248
  -264
  -280
  -297
  -315
  -333
  -352
  -373
  -394
  -416
  -438
  -462
  -488
  -514
  -541
New CAPEX, $m
  -134
  -255
  -267
  -280
  -293
  -306
  -319
  -332
  -345
  -359
  -373
  -388
  -403
  -419
  -436
  -453
  -471
  -491
  -511
  -532
  -555
  -579
  -604
  -630
  -658
  -688
  -719
  -752
  -787
  -823
  -861
Cash from investing activities, $m
  -1,657
  -329
  -349
  -371
  -393
  -416
  -439
  -463
  -487
  -512
  -538
  -566
  -594
  -623
  -654
  -686
  -719
  -755
  -791
  -829
  -870
  -912
  -956
  -1,003
  -1,052
  -1,104
  -1,157
  -1,214
  -1,275
  -1,337
  -1,402
Free cash flow, $m
  -935
  961
  1,043
  1,129
  1,219
  1,314
  1,414
  1,518
  1,626
  1,739
  1,856
  1,815
  1,942
  2,073
  2,210
  2,352
  2,500
  2,653
  2,813
  2,979
  3,152
  3,333
  3,520
  3,716
  3,921
  4,134
  4,357
  4,590
  4,833
  5,088
  5,354
Issuance/(repayment) of debt, $m
  2,456
  1,020
  1,057
  1,108
  1,159
  1,210
  1,262
  1,313
  1,366
  1,420
  1,476
  1,534
  1,594
  1,657
  1,723
  1,792
  1,864
  1,941
  2,021
  2,106
  2,195
  2,289
  2,389
  2,494
  2,605
  2,721
  2,845
  2,975
  3,112
  3,256
  3,408
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
  1,020
  1,057
  1,108
  1,159
  1,210
  1,262
  1,313
  1,366
  1,420
  1,476
  1,534
  1,594
  1,657
  1,723
  1,792
  1,864
  1,941
  2,021
  2,106
  2,195
  2,289
  2,389
  2,494
  2,605
  2,721
  2,845
  2,975
  3,112
  3,256
  3,408
Total cash flow (excl. dividends), $m
  261
  1,981
  2,099
  2,237
  2,379
  2,525
  2,676
  2,831
  2,992
  3,159
  3,332
  3,349
  3,536
  3,730
  3,933
  4,144
  4,364
  4,594
  4,834
  5,085
  5,347
  5,622
  5,909
  6,210
  6,526
  6,856
  7,202
  7,565
  7,945
  8,343
  8,762
Retained Cash Flow (-), $m
  179
  -555
  -579
  -607
  -635
  -663
  -691
  -720
  -749
  -778
  -809
  -841
  -874
  -908
  -944
  -982
  -1,022
  -1,063
  -1,107
  -1,154
  -1,203
  -1,255
  -1,309
  -1,367
  -1,427
  -1,491
  -1,559
  -1,630
  -1,705
  -1,784
  -1,867
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
 
  2,073
  1,520
  1,630
  1,743
  1,862
  1,984
  2,112
  2,244
  2,381
  2,523
  2,509
  2,662
  2,822
  2,989
  3,162
  3,342
  3,530
  3,727
  3,931
  4,144
  4,367
  4,600
  4,844
  5,098
  5,364
  5,643
  5,934
  6,240
  6,559
  6,894
Discount rate, %
 
  6.30
  6.62
  6.95
  7.29
  7.66
  8.04
  8.44
  8.86
  9.31
  9.77
  10.26
  10.78
  11.31
  11.88
  12.47
  13.10
  13.75
  14.44
  15.16
  15.92
  16.72
  17.55
  18.43
  19.35
  20.32
  21.33
  22.40
  23.52
  24.70
  25.93
PV of cash for distribution, $m
 
  1,950
  1,337
  1,332
  1,316
  1,287
  1,248
  1,197
  1,137
  1,069
  993
  857
  780
  701
  621
  542
  466
  395
  329
  269
  216
  170
  131
  99
  73
  53
  37
  25
  17
  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. (Nasdaq) is a holding company. The Company is a provider of trading, clearing, exchange technology, regulatory, securities listing, information and public company services. It manages, operates and provides its products and services through four segments: Market Services, Corporate Services, Information Services and Market Technology. Its global offerings include trading and clearing across various asset classes, trade management services, data products, financial indexes, capital formation solutions, corporate solutions, and market technology products and services. Its technology markets across the globe, supporting equity derivative trading, clearing and settlement, cash equity trading, fixed income trading and various other functions. Its Market Services segment include its equity derivative trading and clearing, cash equity trading, fixed income clearing corporation and trade management services businesses. Its Corporate Solutions business serves corporate clients.

FINANCIAL RATIOS  of  Nasdaq (NDAQ)

Valuation Ratios
P/E Ratio 115.3
Price to Sales 3.4
Price to Book 2.3
Price to Tangible Book
Price to Cash Flow 17.2
Price to Free Cash Flow 21.2
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 11.5% 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 6.3%, 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 4% 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 59.6%.

Life of production assets of 46.6 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 168.581 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 $12.6 billion.

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COMPANY NEWS

▶ ETFs with exposure to Nasdaq, Inc. : September 18, 2017   [Sep-18-17 06:22PM  Capital Cube]
▶ Nasdaq Completes Acquisition of Sybenetix   [11:33AM  GlobeNewswire]
▶ Shatterproof to Ring The Nasdaq Stock Market Opening Bell   [Sep-13-17 03:10PM  GlobeNewswire]
▶ BlackRock to Ring The Nasdaq Stock Market Closing Bell   [Sep-06-17 03:27PM  GlobeNewswire]
▶ [$$] Nasdaq to Buy eVestment for $705 Million   [12:19AM  The Wall Street Journal]
▶ Nasdaq August 2017 Volumes   [04:15PM  GlobeNewswire]
▶ [$$] Nasdaq to Buy eVestment for $705 Million   [09:01AM  The Wall Street Journal]
▶ Nasdaq to Acquire eVestment   [07:30AM  GlobeNewswire]
▶ [$$] Nasdaq Looks to Ease Rules for Blank-Check IPOs   [12:31AM  The Wall Street Journal]
▶ [$$] Nasdaq Tries to Ease Rules for Blank-Check IPOs   [Aug-31-17 05:01PM  The Wall Street Journal]
▶ Nasdaq's Boardvantage® to Expand Presence in Canada   [Aug-17-17 01:39PM  GlobeNewswire]
▶ Nasdaq Halts Digiliti Money Group, Inc.   [Aug-16-17 01:12PM  GlobeNewswire]
Financial statements 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.

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