Find your next quality investment with Simply Wall St's easy and powerful screener, trusted by over 7 million individual investors worldwide.
The U.S. Securities and Exchange Commission has cleared Nasdaq (NDAQ) to list cash settled Bitcoin index options on the Philadelphia Stock Exchange, drawing fresh attention to the stock after its recent earnings driven move.
See our latest analysis for Nasdaq.
Nasdaq’s share price has eased slightly in the past week but still sits at US$90.88, with a 3 month share price return of 8.2% and a 1 year total shareholder return of 10.8%, suggesting momentum has been building around the strong Q1 update and the SEC approved Bitcoin index options plan.
If you are looking beyond Nasdaq for other ways to position around the crypto theme, now could be a good time to scan for opportunities through our curated list of 22 cryptocurrency and blockchain stocks
With Nasdaq up 5.5% after a strong Q1, revenue growth of 13.7%, and fresh crypto optionality from QBTC, you have to ask: is the stock still undervalued, or are markets already pricing in the next leg of growth?
Based on the most followed valuation narrative, Nasdaq’s fair value sits at $106.67 against the last close of $90.88. This points to a meaningful gap that the market has not closed yet.
Want to see what growth, margin and P/E profile has to line up for that valuation to work? The narrative leans on steady compounding, a richer mix, and a premium earnings multiple. Curious which assumptions carry the most weight in that $106.67 fair value call.
Have a read of the narrative in full and understand what's behind the forecasts.
However, that fair value gap can close quickly if client decision cycles stay slow or if competition and regulation weigh more heavily on Nasdaq’s technology and crypto plans.
Find out about the key risks to this Nasdaq narrative.
The SWS DCF model points to a fair value of about $82 per share, which sits below the current $90.88 price and contrasts with the $106.67 narrative fair value. If cash flow assumptions prove closer to reality than earnings multiples, is the upside story already stretched?