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Nasdaq (NDAQ) is in the spotlight after a governance change that introduces limited officer exculpation and clarifies board powers, together with fresh momentum in its fintech tools through client partnerships.
At the 2025 annual meeting, shareholders backed a charter amendment that adds limited protection for certain officers. This later received Securities and Exchange Commission approval and became effective in January 2026.
The updated framework confirms that the board can use all powers permitted by law and the company’s governing documents. It also confirms that the board can delegate responsibilities to committees or company staff when it considers that appropriate.
For investors, one key part of the language is how the board evaluates major corporate actions such as tender offers, potential mergers, large asset transactions, restructurings, or decisions relating to holders of so called Excess Shares.
The board is directed to consider a broad set of factors it views as relevant, including the effect on the integrity, continuity, and stability of Nasdaq, its self regulatory subsidiaries, and other business operations.
This kind of governance detail does not always move a share price on its own. However, it can shape how major decisions are made in future and how different stakeholders are weighed in complex situations.
See our latest analysis for Nasdaq.
These governance changes and the fresh fintech partnership news arrive after a mixed short term stretch for the stock, with a 90 day share price return of 10.87% and a 1 year total shareholder return of 22.32%. This points to momentum that has been building over the longer term despite recent softness.
If this kind of market infrastructure story interests you, it could be a good moment to broaden your watchlist and check out fast growing stocks with high insider ownership as potential next ideas.
With Nasdaq trading around US$98, a 26.9x forward P/E and only around 9% annual EPS growth recently, you have to ask yourself: is this fintech pivot still undervalued, or is the market already pricing in the next leg of growth?
With Nasdaq last closing at $98.05 against a narrative fair value of about $104.67, the current setup assumes some upside is still on the table.
The enhanced partnership with AWS is expected to modernize Nasdaq’s market infrastructure across its financial services clientele, driving operational efficiencies, improving scalability, and potentially increasing market share, positively impacting net margins and future revenue growth.
Curious how a falling revenue line, higher margins, and a rich future earnings multiple can still support that fair value? The narrative leans on a specific mix of profit growth, share count assumptions, and required returns that is anything but simple. If you want to see exactly which earnings and margin path has to play out to justify that price, the full narrative lays it all out.
Result: Fair Value of $104.67 (UNDERVALUED)
Have a read of the narrative in full and understand what’s behind the forecasts.
However, this hinges on a macro backdrop that stays supportive and on Nasdaq executing complex partnerships and integrations such as Adenza without delays or value leakage.
Find out about the key risks to this Nasdaq narrative.
That 6.3% narrative undervaluation sits awkwardly next to Nasdaq’s current 34.5x P/E, which is well above both its fair ratio of 16.8x and the US Capital Markets average of 24.8x, as well as a 34.1x peer average. If sentiment cools, the share price could drift toward those lower anchors.
See what the numbers say about this price — find out in our valuation breakdown.
NasdaqGS:NDAQ P/E Ratio as at Jan 2026
If you are not fully on board with this view or prefer to lean on your own research, you can build a custom Nasdaq story in just a few minutes with Do it your way.
A great starting point for your Nasdaq research is our analysis highlighting 2 key rewards and 1 important warning sign that could impact your investment decision.
If Nasdaq is on your radar, do not stop there. Widening your opportunity set with a few focused screens can change what shows up on your watchlist.
This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.
Companies discussed in this article include NDAQ.
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