NDAQ Stock Report

2-Year Price History

Ockham's Rating

Rating specific information requires Premium Access.
Buy Now or Take the Tour.

NDAQ Revenue

For a long time, value investors have used the current share price relative to sales per share levels as an important valuation tool. We utilize a historical weighted average methodology that treats recent years more importantly in the calculation. When looking at NDAQ through this framework, we can see that our weighted average historical high and low Price to Sales per share ratios over the last 8 years are 2.84x and 1.08x respectively.

Utilizing this range we can see that NDAQ’s current Price to Sales per share ratio of 1.67x is somewhat below its historical weighted average by 15%. Given this level of sales per share, we suggest a neutral share price forecast. To the extent there is a further drop in the Price to Sales ratio from current levels, which would occur through some combination of increased sales per share or a decline in share price, we would only become more positive about the Price to Sales ratio outlook.

NDAQ Cash Earnings

Cash Earnings is always one of the most important factors to review for a company and, more importantly, an investment in a stock. NDAQ is significantly below its historical average multiple of cash earnings as calculated by Ockham. Similar to our analysis of sales per share, Ockham looks at the last 8 years of cash earnings levels for NDAQ to identify where the current high and low price levels have been historically in relation to profit per share. Again, we utilize a weighted average methodology which relies more heavily on recent years of data. This weighted average framework provides us with an average high Price to Cash Earnings ratio per share of 21.21 and a 7.73 low over the same period.

Now that NDAQ’s current price is $20.46 and its Price to Cash Earnings ratio is 10.49, we are very positive on its outlook from the cash earnings perspective. In fact, NDAQ is now trading a full 28% below its average historical Price to Cash Earnings ratio at these profit per share levels. When our clients ask us why NDAQ has great long term potential, the Cash Earnings levels to current stock is one of our primary reasons. But naturally, now we need for the overall market to recognize this disparity.

NDAQ Dividends

A strong dividend payment history is looked upon as a favorable characteristic on a company’s future and potentially can receive a positive Ockham rating. That being said, we don't require dividend payments for company's whose management has elected to forgo them entirely. While we do like to see companies with healthy and growing dividends, it is not appropriate for all companies, especially those focused on growth. In this regard, we regard NDAQ as neutral because we do not have historical data for this company's dividends. We will being incorporating this into our analysis as soon as that data is available.