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NDAQ (Nasdaq) PS Ratio : 6.03 (As of Oct. 31, 2024)


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What is Nasdaq PS Ratio?

The PS Ratio, or Price-to-Sales ratio, or Price/Sales, is a financial ratio used to compare a company's market price to its Revenue per Share. As of today, Nasdaq's share price is $73.92. Nasdaq's Revenue per Share for the trailing twelve months (TTM) ended in Sep. 2024 was $12.26. Hence, Nasdaq's PS Ratio for today is 6.03.

Warning Sign:

Nasdaq Inc stock PS Ratio (=6.16) is close to 10-year high of 6.24

The historical rank and industry rank for Nasdaq's PS Ratio or its related term are showing as below:

NDAQ' s PS Ratio Range Over the Past 10 Years
Min: 2.21   Med: 3.93   Max: 6.24
Current: 6.07

During the past 13 years, Nasdaq's highest PS Ratio was 6.24. The lowest was 2.21. And the median was 3.93.

NDAQ's PS Ratio is ranked worse than
62.09% of 765 companies
in the Capital Markets industry
Industry Median: 3.9 vs NDAQ: 6.07

Nasdaq's Revenue per Sharefor the three months ended in Sep. 2024 was $3.29. Its Revenue per Share for the trailing twelve months (TTM) ended in Sep. 2024 was $12.26.

Warning Sign:

Nasdaq Inc revenue growth has slowed down over the past 12 months.

During the past 12 months, the average Revenue per Share Growth Rate of Nasdaq was 1.20% per year. During the past 3 years, the average Revenue per Share Growth Rate was 2.00% per year. During the past 5 years, the average Revenue per Share Growth Rate was 8.60% per year. During the past 10 years, the average Revenue per Share Growth Rate was 7.90% per year.

During the past 13 years, Nasdaq's highest 3-Year average Revenue per Share Growth Rate was 40.10% per year. The lowest was -5.50% per year. And the median was 5.40% per year.

Back to Basics: PS Ratio


Nasdaq PS Ratio Historical Data

The historical data trend for Nasdaq's PS Ratio can be seen below:

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

* Premium members only.

Nasdaq PS Ratio Chart

Nasdaq Annual Data
Trend Dec14 Dec15 Dec16 Dec17 Dec18 Dec19 Dec20 Dec21 Dec22 Dec23
PS Ratio
Get a 7-Day Free Trial Premium Member Only Premium Member Only 4.20 3.94 6.01 4.91 4.87

Nasdaq Quarterly Data
Dec19 Mar20 Jun20 Sep20 Dec20 Mar21 Jun21 Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23 Sep23 Dec23 Mar24 Jun24 Sep24
PS Ratio Get a 7-Day Free Trial Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 4.01 4.87 5.38 5.06 5.95

Competitive Comparison of Nasdaq's PS Ratio

For the Financial Data & Stock Exchanges subindustry, Nasdaq's PS Ratio, along with its competitors' market caps and PS Ratio data, can be viewed below:

* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.


Nasdaq's PS Ratio Distribution in the Capital Markets Industry

For the Capital Markets industry and Financial Services sector, Nasdaq's PS Ratio distribution charts can be found below:

* The bar in red indicates where Nasdaq's PS Ratio falls into.



Nasdaq PS Ratio Calculation

The PS Ratio, or Price-to-Sales ratio, or Price/Sales, is a financial ratio used to compare a company's market price to its Revenue per Share. It is a ratio widely used to value stocks and it was first used by Ken Fisher.

Nasdaq's PS Ratio for today is calculated as

PS Ratio=Share Price/Revenue per Share (TTM)
=73.92/12.261
=6.03

Nasdaq's Share Price of today is $73.92.
Nasdaq's Revenue per Share for the trailing twelve months (TTM) ended in Sep. 2024 adds up the quarterly data reported by the company within the most recent 12 months, which was $12.26.

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

It can also be calculated from the numbers for the whole company:

PS Ratio=Market Cap/Revenue

The Revenue here is for the trailing 12 months.


Nasdaq  (NAS:NDAQ) PS Ratio Explanation

The PS Ratio is an excellent valuation indicator if you want to compare a stock with its historical valuation or with the stocks in the same industry. The PS Ratio works especially well when you want to compare the stock's current valuation with its historical valuation. The PS Ratio is a great valuation tool for evaluating cyclical businesses where the PE Ratio works poorly. It works the best when comparing the current valuation with the historical valuation because over time, a company's profit margin tends to revert to the mean.

When the PS Ratio is applied to the whole stock market, it can be used to evaluate the current market valuation and projected returns. In this case, the price is the total market cap of all stocks that are traded, and sales are the GDP of the country. This is how Warren Buffett estimates the broad market valuation and project future returns.

Similar to the PE Ratio or Price-to-Operating-Cash-Flow or Price-to-Free-Cash-Flow , the PS Ratio measures the valuation based on the earning power of the company. This is where it is different from the PB Ratio , which measures the valuation based on the company's balance sheet.


Be Aware

The PS Ratio does not tell you how cheap or expensive the stock is. It cannot be used to compare companies in different industries. It works better for companies within the same industry because these companies tend to have similar capital structures and profit margins. It works the best when comparing a company with itself in the past.


Nasdaq PS Ratio Related Terms

Thank you for viewing the detailed overview of Nasdaq's PS Ratio provided by GuruFocus.com. Please click on the following links to see related term pages.


Nasdaq Business Description

Address
151 W. 42nd Street, New York, NY, USA, 10036
Founded in 1971, Nasdaq is primarily known for its equity exchange, but in addition to its market-services business (about 35% of sales), the company sells and distributes market data as well as offers Nasdaq-branded indexes to asset managers and investors through its information-services segment (30%). Nasdaq's corporate-services business (20%) offers listing services and related investor relations products to publicly traded companies and through the company's market technology group (15%), Nasdaq facilitates the exchange operations of other exchanges throughout the world and provides financial compliance services.
Executives
John Zecca officer: Executive Vice President 151 W. 42ND STREET, NEW YORK NY 10036
Bradley J Peterson officer: Executive Vice President ONE LIBERTY PLAZA, NEW YORK NY 10006
Adenza Parent, Lp director, 10 percent owner ONE MARKET PLAZA, SPEAR TOWER, SUITE 2400, SAN FRANCISCO CA 94150
Bryan Everard Smith officer: Executive Vice President 151 W. 42ND STREET, NEW YORK NY 10036
Borse Dubai Ltd 10 percent owner LEVEL 7, PRECINCT BLDG 5, GATE DISTRICT, PO BOX 506690, DUBAI INTL FINANCIAL CTR, DUBAI C0 00000
Spaht Paul Holden Jr. director 600 MONTGOMERY STREET, 20TH FLOOR, SAN FRANCISCO CA 94111
Thoma Bravo Ugp, Llc director, 10 percent owner 110 N. WACKER DRIVE, 32ND FLOOR, CHICAGO IL 60606
Ann M Dennison officer: Controller and Prin Acctg Ofcr ONE LIBERTY PLAZA, NEW YORK NY 10006
Johan Torgeby director 151 W. 42ND STREET, NEW YORK NY 10036
Jeffery W Yabuki director 255 FISERV DRIVE, BROOKFIELD WI 53045
Adena T Friedman officer: Executive Vice President 1801 K STREET, N.W., WASHINGTON DC 20006
Michael R Splinter director
Steven D Black director C/O JPMORGAN CHASE & CO., 270 PARK AVENUE, NEW YORK NY 10017
Michelle Lynn Daly officer: Controller and Prin Acctg Ofcr 151 W. 42ND STREET, NEW YORK NY 10036
Brendan Brothers officer: Interim Head of AFC 151 W. 42ND STREET, NEW YORK NY 10036