Nasdaq Profitability Analysis

NDAQ Stock  USD 63.10  0.10  0.16%   
Considering Nasdaq's profitability and operating efficiency indicators, Nasdaq's profitability may be sliding down. It has an above-average odds of reporting lower numbers next quarter. Profitability indicators assess Nasdaq's ability to earn profits and add value for shareholders.
 
Net Income  
First Reported
2000-03-31
Previous Quarter
294 M
Current Value
197 M
Quarterly Volatility
105.9 M
 
Dot-com Bubble
 
Housing Crash
 
Credit Downgrade
 
Yuan Drop
 
Covid
At this time, Nasdaq's Price To Sales Ratio is relatively stable compared to the past year. As of 03/29/2024, Price Sales Ratio is likely to grow to 5.08, while Operating Cash Flow Sales Ratio is likely to drop 0.03. At this time, Nasdaq's Operating Income is relatively stable compared to the past year. As of 03/29/2024, Net Income is likely to grow to about 1.1 B, though Total Other Income Expense Net is likely to grow to (168.2 M).
Current ValueLast YearChange From Last Year 10 Year Trend
Gross Profit Margin0.550.8003
Way Down
Very volatile
Net Profit Margin0.180.1746
Fairly Up
Slightly volatile
Operating Profit Margin0.140.2602
Way Down
Slightly volatile
Pretax Profit Margin0.130.231
Way Down
Pretty Stable
Return On Assets0.04360.0328
Significantly Up
Very volatile
Return On Equity0.0670.0979
Way Down
Slightly volatile
For Nasdaq profitability analysis, we use financial ratios and fundamental drivers that measure the ability of Nasdaq to generate income relative to revenue, assets, operating costs, and current equity. These fundamental indicators attest to how well Nasdaq Inc utilizes its assets to generate profit and value for its shareholders. The profitability module also shows relationships between Nasdaq's most relevant fundamental drivers. It provides multiple suggestions of what could affect the performance of Nasdaq Inc over time as well as its relative position and ranking within its peers.
  
Check out Correlation Analysis.
Is Nasdaq's industry expected to grow? Or is there an opportunity to expand the business' product line in the future? Factors like these will boost the valuation of Nasdaq. If investors know Nasdaq will grow in the future, the company's valuation will be higher. The financial industry is built on trying to define current growth potential and future valuation accurately. All the valuation information about Nasdaq listed above have to be considered, but the key to understanding future value is determining which factors weigh more heavily than others.
Quarterly Earnings Growth
(0.27)
Dividend Share
0.86
Earnings Share
2.08
Revenue Per Share
12.01
Quarterly Revenue Growth
0.041
The market value of Nasdaq Inc is measured differently than its book value, which is the value of Nasdaq that is recorded on the company's balance sheet. Investors also form their own opinion of Nasdaq's value that differs from its market value or its book value, called intrinsic value, which is Nasdaq's true underlying value. Investors use various methods to calculate intrinsic value and buy a stock when its market value falls below its intrinsic value. Because Nasdaq's market value can be influenced by many factors that don't directly affect Nasdaq's underlying business (such as a pandemic or basic market pessimism), market value can vary widely from intrinsic value.
Please note, there is a significant difference between Nasdaq's value and its price as these two are different measures arrived at by different means. Investors typically determine if Nasdaq is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, Nasdaq's price is the amount at which it trades on the open market and represents the number that a seller and buyer find agreeable to each party.

Nasdaq Inc Market Capitalization vs. Cash And Equivalents Fundamental Analysis

Comparative valuation techniques use various fundamental indicators to help in determining Nasdaq's current stock value. Our valuation model uses many indicators to compare Nasdaq value to that of its competitors to determine the firm's financial worth.
Nasdaq Inc is regarded second in cash and equivalents category among related companies. It is regarded second in market capitalization category among related companies creating about  84.49  of Market Capitalization per Cash And Equivalents. . Comparative valuation analysis is a catch-all model that can be used if you cannot value Nasdaq by discounting back its dividends or cash flows. This model doesn't attempt to find an intrinsic value for Nasdaq's Stock . Still, instead, it compares the stock's price multiples to a benchmark or nearest competition to determine if the stock is relatively undervalued or overvalued. The reason why the comparable model can be used in almost all circumstances is due to the vast number of multiples that can be utilized, such as the price-to-earnings (P/E), price-to-book (P/B), price-to-sales (P/S), price-to-cash flow (P/CF), and many others. The P/E ratio is the most commonly used of these ratios because it focuses on the Nasdaq's earnings, one of the primary drivers of an investment's value.

Nasdaq Market Capitalization vs. Cash And Equivalents

Cash or Cash Equivalents are the most liquid of all assets found on the company's balance sheet. It is used in calculating many of the firm's liquidity ratios and is a good indicator of the overall financial health of a company. Companies with a lot of cash are usually attractive takeover targets. Cash Equivalents are balance sheet items that are typically reported using currency printed on notes.

Nasdaq

Cash

 = 

Bank Deposits

+

Liquidities

 = 
430 M
Cash equivalents represent current assets that are easily convertible to cash such as short term bonds, savings account, money market funds, or certificate of deposits (CDs). One of the important consideration companies make when classifying assets as cash equivalent is that investments they report on their balance sheets under current assets should have almost no risk of change in value over the next few months (usually three months).
Market Capitalization is the total market value of a company's equity. It is one of many ways to value a company and is calculated by multiplying the price of the stock by the number of shares issued. If a firm has one type of stock its market capitalization will be the current market share price multiplied by the number of shares. However, if a company has multiple types of equities then the market cap will be the total of the market caps of the different types of shares.

Nasdaq

Market Cap

 = 

Shares Outstanding

X

Share Price

 = 
36.33 B
In most publications or references market cap is broken down into the mega-cap, large-cap, mid-cap, small-cap, micro-cap, and nano-cap. Market Cap is a measurement of business as total market value of all of the outstanding shares at a given time, and can be used to compare different companies based on their size.

Nasdaq Market Capitalization vs Competition

Nasdaq Inc is regarded second in market capitalization category among related companies. Market capitalization of Financials industry is now estimated at about 174.25 Billion. Nasdaq totals roughly 36.33 Billion in market capitalization claiming about 21% of equities under Financials industry.
Capitalization  Valuation  Revenue  Workforce  Total debt

Nasdaq Profitability Projections

The most important aspect of a successful company is its ability to generate a profit. For investors in Nasdaq, profitability is also one of the essential criteria for including it into their portfolios because, without profit, Nasdaq will eventually generate negative long term returns. The profitability progress is the general direction of Nasdaq's change in net profit over the period of time. It can combine multiple indicators of Nasdaq, where stable trends show no significant progress. An accelerating trend is seen as positive, while a decreasing one is unfavorable. A rising trend means that profits are rising, and operational efficiency may be rising as well. A decreasing trend is a sign of poor performance and may indicate upcoming losses.
Last ReportedProjected for 2024
Accumulated Other Comprehensive Income-1.9 B-1.8 B
Operating Income1.6 B1.7 B
Net Income1.1 B1.1 B
Income Tax Expense344 M179.3 M
Income Before Tax1.4 B1.5 B
Total Other Income Expense Net-177 M-168.2 M
Net Income Applicable To Common Shares1.3 B1.4 B
Net Income From Continuing Ops1.1 B699.3 M
Non Operating Income Net Other46 M62.2 M
Interest Income90 M94.5 M
Net Interest Income-117 M-122.8 M
Change To Netincome180.6 M94.7 M
Net Income Per E B T 0.76  0.92 

Nasdaq Profitability Driver Comparison

Profitability drivers are factors that can directly affect your investment outlook on Nasdaq. Investors often realize that things won't turn out the way they predict. There are maybe way too many unforeseen events and contingencies during the holding period of Nasdaq position where the market behavior may be hard to predict, tax policy changes, gold or oil price hikes, calamities change, and many others. The question is, are you prepared for these unexpected events? Although some of these situations are obviously beyond your control, you can still follow the important profit indicators to know where you should focus on when things like this occur. Below are some of the Nasdaq's important profitability drivers and their relationship over time.

Nasdaq Profitability Trends

Nasdaq profitability trend refers to the progression of profit or loss within a business. An upward trend means that Nasdaq's profit has generally increased over time, and a downward profitability trend means profits are declining. Recognizing problems early in profitability trends allows investors to address revenue and cost issues in advance. Investors and analysts usually monitor three types of profitability trends: gross, operating, and net. Gross profit is the difference between revenue and costs of goods sold. Operating profit is Nasdaq's gross profit minus its overhead. After you account for other unusual revenue, expenses, and costs, you get net profit. Gross profit trends are often a good indicator of future profitability. If you have high gross profit margins, you have a better chance to cover overhead and make money.

Nasdaq Profitability Drivers Correlations

One of the toughest challenges investors face today is learning how to quickly synthesize and read into endless financial statements and information provided by the company, SEC reporting, and various external parties. Understanding the correlation between Nasdaq different financial indicators related to revenue and profit generation helps investors identify and prioritize their investing strategies towards Nasdaq in a much-optimized way. Analyzing correlations between profit drivers that are directly associated with dollar figures is the most effective way to break down Nasdaq's future profitability.

Use Nasdaq in pair-trading

One of the main advantages of trading using pair correlations is that every trade hedges away some risk. Because there are two separate transactions required, even if Nasdaq position performs unexpectedly, the other equity can make up some of the losses. Pair trading also minimizes risk from directional movements in the market. For example, if an entire industry or sector drops because of unexpected headlines, the short position in Nasdaq will appreciate offsetting losses from the drop in the long position's value.

Nasdaq Pair Trading

Nasdaq Inc Pair Trading Analysis

The ability to find closely correlated positions to Nasdaq could be a great tool in your tax-loss harvesting strategies, allowing investors a quick way to find a similar-enough asset to replace Nasdaq when you sell it. If you don't do this, your portfolio allocation will be skewed against your target asset allocation. So, investors can't just sell and buy back Nasdaq - that would be a violation of the tax code under the "wash sale" rule, and this is why you need to find a similar enough asset and use the proceeds from selling Nasdaq Inc to buy it.
The correlation of Nasdaq is a statistical measure of how it moves in relation to other instruments. This measure is expressed in what is known as the correlation coefficient, which ranges between -1 and +1. A perfect positive correlation (i.e., a correlation coefficient of +1) implies that as Nasdaq moves, either up or down, the other security will move in the same direction. Alternatively, perfect negative correlation means that if Nasdaq Inc moves in either direction, the perfectly negatively correlated security will move in the opposite direction. If the correlation is 0, the equities are not correlated; they are entirely random. A correlation greater than 0.8 is generally described as strong, whereas a correlation less than 0.5 is generally considered weak.
Correlation analysis and pair trading evaluation for Nasdaq can also be used as hedging techniques within a particular sector or industry or even over random equities to generate a better risk-adjusted return on your portfolios.
Pair CorrelationCorrelation Matching

Use Investing Themes to Complement your Nasdaq position

In addition to having Nasdaq in your portfolios, you can quickly add positions using our predefined set of ideas and optimize them against your very unique investing style. A single investing idea is a collection of funds, stocks, ETFs, or cryptocurrencies that are programmatically selected from a pull of investment themes. After you determine your investment opportunity, you can then find an optimal portfolio that will maximize potential returns on the chosen idea or minimize its exposure to market volatility.

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Run Music and Video Thematic Idea Now

Music and Video
Music and Video Theme
Companies specializing in music, video and movie production and distribution. The Music and Video theme has 34 constituents at this time.
You can either use a buy-and-hold strategy to lock in the entire theme or actively trade it to take advantage of the short-term price volatility of individual constituents. Macroaxis can help you discover thousands of investment opportunities in different asset classes. In addition, you can partner with us for reliable portfolio optimization as you plan to utilize Music and Video Theme or any other thematic opportunities.
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When determining whether Nasdaq Inc is a good investment, qualitative aspects like company management, corporate governance, and ethical practices play a significant role. A comparison with peer companies also provides context and helps to understand if Nasdaq Stock is undervalued or overvalued. This multi-faceted approach, blending both quantitative and qualitative analysis, forms a solid foundation for making an informed investment decision about Nasdaq Inc Stock. Highlighted below are key reports to facilitate an investment decision about Nasdaq Inc Stock:
Check out Correlation Analysis.
Note that the Nasdaq Inc information on this page should be used as a complementary analysis to other Nasdaq's statistical models used to find the right mix of equity instruments to add to your existing portfolios or create a brand new portfolio. You can also try the Financial Widgets module to easily integrated Macroaxis content with over 30 different plug-and-play financial widgets.

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To fully project Nasdaq's future profitability, investors should examine all historical financial statements. These statements provide investors with a comprehensive snapshot of the financial position of Nasdaq Inc at a specified time, usually calculated after every quarter, six months, or one year. Three primary documents fall into the category of financial statements. These documents include Nasdaq's income statement, its balance sheet, and the statement of cash flows.
Potential Nasdaq investors and stakeholders can use historical trends found within financial statements to determine how well the company is positioned for the future. Although Nasdaq investors may work on each financial statement separately, they are all related. The changes in Nasdaq's assets and liabilities, for example, are also reflected in the revenues and expenses that we see on Nasdaq's income statement, which results in the company's gains or losses. Cash flows can provide more information regarding cash listed on a balance sheet but not equivalent to net income shown on the income statement. Please read more on our technical analysis and fundamental analysis pages.