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Nasdaq (NDAQ) has drawn investor attention after reporting second quarter 2026 results, alongside a fresh quarterly dividend declaration, a completed multi year share repurchase program, and resolution of a long running patent dispute.
See our latest analysis for Nasdaq.
Nasdaq’s recent earnings and dividend announcement have arrived after a mixed price stretch, with the stock showing an 11.26% 1 month share price return but a 2.56% decline year to date. The 3 year total shareholder return of 98.50% contrasts with a far more muted 0.22% total shareholder return over the past year, suggesting strong longer term compounding but less momentum recently.
If this earnings season has you thinking beyond a single exchange operator, it could be a good time to broaden your watchlist with 18 top founder-led companies
After Nasdaq’s recent bounce and the latest earnings, dividend and buyback updates, the question now is whether to accept today’s price or wait for a pullback. How does the current valuation stack up against what you are getting?
Most Popular Narrative: 14.4% Undervalued
Nasdaq’s most followed valuation narrative currently points to a fair value of $110.07 against a last close of $94.19, which frames the recent share price reset in a different light.
The Solutions business, including AI and tokenization offerings, is seen as a key growth driver. Bullish analysts point to “accelerating Solutions execution” and comfort around using AI across the platform as reasons to raise outer year EPS estimates.
Want to see what sits behind that confidence in Nasdaq’s Solutions engine? Revenue mix shifts, margin assumptions and future earnings multiples are all baked into this valuation story. The numbers behind it may surprise you.
Result: Fair Value of $110.07 (UNDERVALUED)
Have a read of the narrative in full and understand what’s behind the forecasts.
However, there are still real pressure points for Nasdaq, including tougher competition from other exchanges and financial technology firms, as well as ongoing regulatory and macroeconomic risks that could disrupt this thesis.
Find out about the key risks to this Nasdaq narrative.
Another View On Nasdaq’s Valuation
The discounted cash flow result pulls in a different direction. Nasdaq is trading at $94.19 while the SWS DCF model points to a future cash flow value of $88.49, which screens as overvalued on that measure. If cash flows matter more than the narrative, how comfortable are you with that gap?
For a closer look at how this cash flow view is built, and how sensitive it is to the inputs you care about, Look into how the SWS DCF model arrives at its fair value.
NDAQ Discounted Cash Flow as at Aug 2026
Simply Wall St performs a discounted cash flow (DCF) on every stock in the world every day (check out Nasdaq for example). We show the entire calculation in full. You can track the result in your watchlist or portfolio and be alerted when this changes, or use our stock screener to discover 55 high quality undervalued stocks. If you save a screener we even alert you when new companies match – so you never miss a potential opportunity.
Next Steps
With sentiment on Nasdaq split between risks and rewards, this is a moment to move quickly, test the assumptions against your own research, then weigh up the 3 key rewards and 2 important warning signs
Looking For More Investment Ideas Beyond Nasdaq?
If you are weighing your next move after Nasdaq’s latest update, do not stop at a single stock. Broaden your watchlist now using focused screeners.
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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