Using the industry peer median P/E multiple (trailing + forward), Nasdaq, Inc. (NDAQ) has a fair value of $87.86 based on 6 comparable companies in the Financial - Data & Stock Exchanges industry.
USD in millions except Fair Price. Subject company highlighted.
| Mkt Cap ($M) | Trailing P/E | Forward P/E | |
|---|---|---|---|
| Nasdaq, Inc.NDAQ | 48,541 | 27.2x | 21.5x |
| S&P Global Inc.SPGI | 124,938 | 28.1x | 21.0x |
| CME Group Inc.CME | 107,954 | 26.9x | 24.9x |
| Intercontinental Exchange, Inc.ICE | 89,170 | 27.1x | 20.3x |
| Moody's CorporationMCO | 76,817 | 31.7x | 25.9x |
| MSCI Inc.MSCI | 39,396 | 34.5x | 27.6x |
| FactSet Research Systems Inc.FDS | 7,347 | 12.6x | 11.2x |
| Industry Median | 27.6x | 23.0x | |
| (*) Profit after tax | 1,789 | 2,259 | |
| Equity Value | 49,420 | 51,888 | |
| (/) Outstanding shares | 577 | 577 | |
| Fair Price | $86 | $90 | |
This P/E relative valuation uses the industry peer median Price-to-Earnings ratio to estimate fair value. Both trailing (last 12 months) and forward (next fiscal year analyst estimates) P/E multiples are computed independently.
The industry median trailing P/E is applied to the company's TTM net income, and the forward P/E to analyst-estimated net income. Each produces an equity value divided by shares outstanding to yield a fair price per share. The selected fair value is the average of the trailing and forward legs.