Nasdaq (NDAQ) Stock Analysis - Best Dividend Growth Stock? Intrinsic Value Calculation!

TL;DR

In this video, the content creator reviews NASDAQ stock (NDAQ) to determine if it is one of the best dividend growth stocks for long-term investing. The analysis covers NASDAQ's business overview, revenue guidance, major competition, stock evaluation, and overall rating.

Transcript

hi everyone this victor here in this video i'm going to review nasdaq stock with a stock taker ndaq to see if it's one of the best dividend growth stocks for long-term investing you may want to notice nasdaq is the parent company of the nasa stock exchange nasdaq owns the nasdaq composite index which is one of the three largest market industries in... Read More

Key Insights

• 👨‍💼 NASDAQ's diverse business segments contribute to its overall revenue, with market technology and investment intelligence being the most profitable.
• ✋ The company's listing business is crucial to driving revenues to other segments and has a high operating margin.
• 👨‍💼 NASDAQ's competitive advantages lie in its branding, index business, and market data business.
• 🍝 The company's financials show consistent revenue and operating income growth over the past 10 years.
• ❓ NASDAQ's revenue guidance suggests growth opportunities in market technology, investment intelligence, and corporate platforms segments.
• 😀 The company faces competition and market risk due to market volatility and trading volumes.
• ☠️ Calculations estimate NASDAQ's intrinsic value per share to be around $188 based on future cash flows and a discount rate of 8%.

Questions & Answers

Q: What are NASDAQ's major businesses, and which ones contribute the most to its revenue?

NASDAQ has four main business segments: market technology, investment intelligence, corporate platforms, and market services. Market technology and investment intelligence contribute the largest revenues and operating income. The corporate platforms business, which includes listing services, is also highly profitable.

Q: How does NASDAQ make money from its index business?

NASDAQ earns licensing fees from companies that create their own ETFs and other financial products linked to the NASDAQ 100 Index. The licensing fees are based on the assets under management tied to the index. The popularity of the index among investors and portfolio managers drives the licensing revenues.

Q: What are NASDAQ's major competitors in the stock exchange and market data businesses?

NASDAQ's biggest competitor in the stock exchange business is the New York Stock Exchange. In the market data business, NASDAQ competes with Intercontinental Exchange, Cboe, TSX, and Dow Jones. The company also faces competition from other major exchanges such as CBOE Options Exchange, TSE Stock Exchange, and the London Stock Exchange.

Q: What is NASDAQ's stock rating based on the analysis?

NASDAQ receives a total rating score of 7 out of 10. The company has a medium economic moat, stable earnings growth, and a very profitable business. The analysis suggests that NASDAQ is a great dividend growth company for long-term investing.

Summary & Key Takeaways

• NASDAQ is the parent company of the NASDAQ stock exchange and owns the NASDAQ Composite Index and NASDAQ 100 Index, making it one of the largest market industries in the US.

• The company's major businesses include market technology, investment intelligence, corporate platforms, and market services, with market technology and investment intelligence being the most profitable.

• NASDAQ's listing business is crucial as it drives revenues to other segments, and the company has a strong competitive advantage in branding, index business, and market data business.