How to buy Nasdaq shares

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Nasdaq, Inc (NDAQ) is a leading financial data & stock exchanges business with stocks listed in the US. It opened the day at US$170.26 after a previous close of US$168.36. During the day the price has varied from a low of USD169.96 to a high of USD173.03. The latest price was USD172.95 (25 minute delay). Nasdaq is listed on the NASDAQ. All prices are listed in US Dollars.

How to buy shares in Nasdaq

  1. Compare share trading platforms. To buy shares in a US company from Australia you'll need to find a trading platform that offers access to US stock markets. If you're just starting out, look for a platform with low brokerage and foreign exchange fees.
  2. Open and fund your brokerage account. Complete an application with your personal and financial details, like your ID and tax file number. Fund your account with a bank transfer, credit card or debit card.
  3. Search for Nasdaq. Find the share by name or ticker symbol: NDAQ. Research its history to confirm it's a solid investment against your financial goals.
  4. Purchase now or later. Buy today with a market order or use a limit order to delay your purchase until Nasdaq reaches your desired price. To spread out your risk, look into dollar-cost averaging, which smooths out buying at consistent intervals and amounts.
  5. Decide on how many to buy. At last close price of US$170.23, weigh your budget against a diversified portfolio that can minimise risk through the market's ups and downs. You may be able to buy a fractional share of Nasdaq, depending on your broker.
  6. Check in on your investment. Congratulations, you own a part of Nasdaq. Optimise your portfolio by tracking how your stock — and even the business — performs with an eye on the long term. You may be eligible for dividends and shareholder voting rights on directors and management that can affect your stock.

Nasdaq share price

Use our graph to track the performance of NDAQ stocks over time.

Nasdaq shares at a glance

Information last updated 2021-06-11.
OpenUS$170.26
HighUS$173.03
LowUS$169.96
CloseUS$172.95
Previous closeUS$168.36
Change US$4.59
Change % 2.7263%
Volume 834,727
Information last updated 2021-06-10.
52-week rangeUS$111.0032 - US$171
50-day moving average US$163.676
200-day moving average US$146.2812
Target priceUS$176.33
PE ratio 27.4992
Dividend yield US$1.96 (1.16%)
Earnings per share (TTM) US$6.15

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The value of your investments can fall as well as rise and you may get back less than you invested. Past performance is no indication of future results.

Is it a good time to buy Nasdaq stock?

The technical analysis gauge below displays real-time ratings for the timeframes you select. This is not a recommendation, however. It represents a technical analysis based on the most popular technical indicators: Moving Averages, Oscillators and Pivots. Finder might not concur and takes no responsibility.

Nasdaq price performance over time

Historical closes compared with the last close of $172.95

1 week (2021-06-03) 2.91%
1 month (2021-05-13) 7.49%
3 months (2021-03-12) 19.75%
6 months (2020-12-11) 37.62%
1 year (2020-06-12) 50.20%
2 years (2019-06-13) 81.21%
3 years (2018-06-13) 81.46%
5 years (2016-06-13) 165.63%

Is Nasdaq under- or over-valued?

Valuing Nasdaq stock is incredibly difficult, and any metric has to be viewed as part of a bigger picture of Nasdaq's overall performance. However, analysts commonly use some key metrics to help gauge the value of a stock.

Nasdaq's P/E ratio

Nasdaq's current share price divided by its per-share earnings (EPS) over a 12-month period gives a "trailing price/earnings ratio" of roughly 27x. In other words, Nasdaq shares trade at around 27x recent earnings.

That's comparable to, say, the trailing 12-month P/E ratio for the NASDAQ 100 at the end of 2019 (27.29).

Nasdaq's PEG ratio

Nasdaq's "price/earnings-to-growth ratio" can be calculated by dividing its P/E ratio by its growth – to give 3.4992. A low ratio can be interpreted as meaning the shares offer better value, while a higher ratio can be interpreted as meaning the shares offer worse value.

The PEG ratio provides a broader view than just the P/E ratio, as it gives more insight into Nasdaq's future profitability. By accounting for growth, it could also help you if you're comparing the share prices of multiple high-growth companies.

Nasdaq's EBITDA

Nasdaq's EBITDA (earnings before interest, taxes, depreciation and amortisation) is US$1.7 billion.

The EBITDA is a measure of a Nasdaq's overall financial performance and is widely used to measure a its profitability.

Nasdaq financials

Revenue TTM US$5.9 billion
Operating margin TTM 24.82%
Gross profit TTM US$2.9 billion
Return on assets TTM 5.52%
Return on equity TTM 17.53%
Profit margin 17.35%
Book value 38.553
Market capitalisation US$27.8 billion

TTM: trailing 12 months

Shorting Nasdaq shares

There are currently 2.8 million Nasdaq shares held short by investors – that's known as Nasdaq's "short interest". This figure is 1.5% up from 2.7 million last month.

There are a few different ways that this level of interest in shorting Nasdaq shares can be evaluated.

Nasdaq's "short interest ratio" (SIR)

Nasdaq's "short interest ratio" (SIR) is the quantity of Nasdaq shares currently shorted divided by the average quantity of Nasdaq shares traded daily (recently around 648268.70588235). Nasdaq's SIR currently stands at 4.25. In other words for every 100,000 Nasdaq shares traded daily on the market, roughly 4250 shares are currently held short.

However Nasdaq's short interest can also be evaluated against the total number of Nasdaq shares, or, against the total number of tradable Nasdaq shares (the shares that aren't held by "insiders" or major long-term shareholders – also known as the "float"). In this case Nasdaq's short interest could be expressed as 0.02% of the outstanding shares (for every 100,000 Nasdaq shares in existence, roughly 20 shares are currently held short) or 0.0241% of the tradable shares (for every 100,000 tradable Nasdaq shares, roughly 24 shares are currently held short).

Such a low SIR usually points to an optimistic outlook for the share price, with fewer people currently willing to bet against Nasdaq.

Find out more about how you can short Nasdaq stock.

Nasdaq's environmental, social and governance track record

Environmental, social and governance (known as ESG) criteria are a set of three factors used to measure the sustainability and social impact of companies like Nasdaq.

When it comes to ESG scores, lower is better, and lower scores are generally associated with lower risk for would-be investors.

Nasdaq's total ESG risk score

Total ESG risk: 16.08

Socially conscious investors use ESG scores to screen how an investment aligns with their worldview, and Nasdaq's overall score of 16.08 (as at 12/31/2018) is excellent – landing it in it in the 11st percentile of companies rated in the same sector.

ESG scores are increasingly used to estimate the level of risk a company like Nasdaq is exposed to within the areas of "environmental" (carbon footprint, resource use etc.), "social" (health and safety, human rights etc.), and "governance" (anti-corruption, tax transparency etc.).

Nasdaq's environmental score

Environmental score: 4.54/100

Nasdaq's environmental score of 4.54 puts it squarely in the 5th percentile of companies rated in the same sector. This could suggest that Nasdaq is a leader in its sector terms of its environmental impact, and exposed to a lower level of risk.

Nasdaq's social score

Social score: 10.23/100

Nasdaq's social score of 10.23 puts it squarely in the 5th percentile of companies rated in the same sector. This could suggest that Nasdaq is a leader in its sector when it comes to taking good care of its workforce and the communities it impacts.

Nasdaq's governance score

Governance score: 11.31/100

Nasdaq's governance score puts it squarely in the 5th percentile of companies rated in the same sector. That could suggest that Nasdaq is a leader in its sector when it comes to responsible management and strategy, and exposed to a lower level of risk.

Nasdaq's controversy score

Controversy score: 2/5

ESG scores also evaluate any incidences of controversy that a company has been involved in. Nasdaq scored a 2 out of 5 for controversy – the second-highest score possible, reflecting that Nasdaq has, for the most part, managed to keep its nose clean.

Environmental, social, and governance (ESG) summary

Nasdaq, Inc was last rated for ESG on: 2019-01-01.

Total ESG score 16.08
Total ESG percentile 10.96
Environmental score 4.54
Environmental score percentile 5
Social score 10.23
Social score percentile 5
Governance score 11.31
Governance score percentile 5
Level of controversy 2

Nasdaq share dividends

30%

Dividend payout ratio: 30.32% of net profits

Recently Nasdaq has paid out, on average, around 30.32% of net profits as dividends. That has enabled analysts to estimate a "forward annual dividend yield" of 1.28% of the current stock value. This means that over a year, based on recent payouts (which are sadly no guarantee of future payouts), Nasdaq shareholders could enjoy a 1.28% return on their shares, in the form of dividend payments. In Nasdaq's case, that would currently equate to about $1.96 per share.

While Nasdaq's payout ratio might seem fairly standard, it's worth remembering that Nasdaq may be investing much of the rest of its net profits in future growth.

Nasdaq's most recent dividend payout was on 24 June 2021. The latest dividend was paid out to all shareholders who bought their shares by 9 June 2021 (the "ex-dividend date").

Nasdaq share price volatility

Over the last 12 months, Nasdaq's shares have ranged in value from as little as US$111.0032 up to US$171. A popular way to gauge a stock's volatility is its "beta".

NDAQ.US volatility(beta: 0.85)Avg. volatility(beta: 1.00)LowHigh

Beta is a measure of a share's volatility in relation to the market. The market (NASDAQ average) beta is 1, while Nasdaq's is 0.8538. This would suggest that Nasdaq's shares are less volatile than average (for this exchange).

Nasdaq overview

Nasdaq, Inc. operates as a technology company that serves capital markets and other industries worldwide. It operates through four segments: Market Services, Corporate Platforms, Investment Intelligence, and Market Technology. The Market Services segment includes equity derivative trading and clearing, cash equity trading, fixed income and commodities trading and clearing, and trade management service businesses. This segment operates various exchanges and other marketplace facilities across various asset classes, which include derivatives, commodities, cash equity, debt, structured products, and exchange traded products; and provides broker, clearing, settlement, and central depository services. The Corporate Platforms segment includes listing; investor relation; and environmental, social, and governance services businesses that deliver critical capital market and governance solutions to public and private companies. As of December 31, 2020, it had 3,392 companies listed securities on The Nasdaq Stock Market, including 1,476 listings on The Nasdaq Global Select Market; 907 on The Nasdaq Global Market; and 1,009 on The Nasdaq Capital Market. The Investment Intelligence segment provides market data, index, and analytics to institutional and retail investors. The Market Technology segment offers technology solutions for trading, clearing, market surveillance, settlement, depository, and information dissemination to markets. It also provides Nasdaq Trade Surveillance solution, a managed service designed for brokers and other market participants; Nasdaq Risk, a suite of products that offer a real-time and multi-tiered risk solutions; Nasdaq Automated Investigator, an anti-money laundering tool; and anti-financial crime management solutions. 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.

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