Nasdaq Current Valuation vs. Return On Equity
| NAQ Stock | EUR 77.29 0.49 0.64% |
For Nasdaq profitability analysis, we use financial ratios and fundamental drivers that measure the ability of Nasdaq to generate income relative to revenue, assets, operating costs, and current equity. These fundamental indicators attest to how well Nasdaq Inc utilizes its assets to generate profit and value for its shareholders. The profitability module also shows relationships between Nasdaq's most relevant fundamental drivers. It provides multiple suggestions of what could affect the performance of Nasdaq Inc over time as well as its relative position and ranking within its peers.
Nasdaq |
Nasdaq Inc Return On Equity vs. Current Valuation Fundamental Analysis
Comparative valuation techniques use various fundamental indicators to help in determining Nasdaq's current stock value. Our valuation model uses many indicators to compare Nasdaq value to that of its competitors to determine the firm's financial worth. Nasdaq Inc is rated top company in current valuation category among its peers. It also is considered to be number one stock in return on equity category among its peers . The ratio of Current Valuation to Return On Equity for Nasdaq Inc is about 194,523,595,842 . The reason why the comparable model can be used in almost all circumstances is due to the vast number of multiples that can be utilized, such as the price-to-earnings (P/E), price-to-book (P/B), price-to-sales (P/S), price-to-cash flow (P/CF), and many others. The P/E ratio is the most commonly used of these ratios because it focuses on the Nasdaq's earnings, one of the primary drivers of an investment's value.Nasdaq Current Valuation vs. Competition
Nasdaq Inc is rated top company in current valuation category among its peers. After adjusting for long-term liabilities, total market size of Financial Data & Stock Exchanges industry is now estimated at about 36.55 Billion. Nasdaq totals roughly 34.76 Billion in current valuation claiming about 95% of equities under Financial Data & Stock Exchanges industry.
Nasdaq Return On Equity vs. Current Valuation
Enterprise Value is a firm valuation proxy that approximates the current market value of a company. It is typically used to determine the takeover or merger price of a firm. Unlike Market Cap, this measure takes into account the entire liquid asset, outstanding debt, and exotic equity instruments that the company has on its balance sheet. When a takeover occurs, the parent company will have to assume the target company's liabilities but will take possession of all cash and cash equivalents.
Nasdaq |
| = | 34.76 B |
Enterprise Value can be a useful tool to compare companies with different capital structures. Long term liability and current cash or cash equivalents can have a huge impact on market valuation of a given company.
Return on Equity or ROE tells company stockholders how effectually their money is being utilized or reinvested. It is a useful ratio when analyzing company profitability or the management effectiveness given the capital invested by the shareholders. ROE shows how efficiently a company utilizes investments to generate income.
Nasdaq |
| = | 0.18 |
For most industries, Return on Equity between 10% and 30% are considered desirable to provide dividends to owners and have funds for the future growth of the company. Investors should be very careful using ROE as the only efficiency indicator because ROE can be high if a company is heavily leveraged.
Nasdaq Return On Equity Comparison
Nasdaq is currently under evaluation in return on equity category among its peers.
Nasdaq Profitability Projections
The most important aspect of a successful company is its ability to generate a profit. For investors in Nasdaq, profitability is also one of the essential criteria for including it into their portfolios because, without profit, Nasdaq will eventually generate negative long term returns. The profitability progress is the general direction of Nasdaq's change in net profit over the period of time. It can combine multiple indicators of Nasdaq, where stable trends show no significant progress. An accelerating trend is seen as positive, while a decreasing one is unfavorable. A rising trend means that profits are rising, and operational efficiency may be rising as well. A decreasing trend is a sign of poor performance and may indicate upcoming losses.
Nasdaq, Inc. operates as a technology company that serves capital markets and other industries worldwide. Nasdaq, Inc. was founded in 1971 and is headquartered in New York, New York. NASDAQ INC operates under Financial Data Stock Exchanges classification in Germany and is traded on Frankfurt Stock Exchange. It employs 5814 people.
Nasdaq Profitability Driver Comparison
Profitability drivers are factors that can directly affect your investment outlook on Nasdaq. Investors often realize that things won't turn out the way they predict. There are maybe way too many unforeseen events and contingencies during the holding period of Nasdaq position where the market behavior may be hard to predict, tax policy changes, gold or oil price hikes, calamities change, and many others. The question is, are you prepared for these unexpected events? Although some of these situations are obviously beyond your control, you can still follow the important profit indicators to know where you should focus on when things like this occur. Below are some of the Nasdaq's important profitability drivers and their relationship over time.
Use Nasdaq in pair-trading
One of the main advantages of trading using pair correlations is that every trade hedges away some risk. Because there are two separate transactions required, even if Nasdaq position performs unexpectedly, the other equity can make up some of the losses. Pair trading also minimizes risk from directional movements in the market. For example, if an entire industry or sector drops because of unexpected headlines, the short position in Nasdaq will appreciate offsetting losses from the drop in the long position's value.Nasdaq Pair Trading
Nasdaq Inc Pair Trading Analysis
The ability to find closely correlated positions to Nasdaq could be a great tool in your tax-loss harvesting strategies, allowing investors a quick way to find a similar-enough asset to replace Nasdaq when you sell it. If you don't do this, your portfolio allocation will be skewed against your target asset allocation. So, investors can't just sell and buy back Nasdaq - that would be a violation of the tax code under the "wash sale" rule, and this is why you need to find a similar enough asset and use the proceeds from selling Nasdaq Inc to buy it.
The correlation of Nasdaq is a statistical measure of how it moves in relation to other instruments. This measure is expressed in what is known as the correlation coefficient, which ranges between -1 and +1. A perfect positive correlation (i.e., a correlation coefficient of +1) implies that as Nasdaq moves, either up or down, the other security will move in the same direction. Alternatively, perfect negative correlation means that if Nasdaq Inc moves in either direction, the perfectly negatively correlated security will move in the opposite direction. If the correlation is 0, the equities are not correlated; they are entirely random. A correlation greater than 0.8 is generally described as strong, whereas a correlation less than 0.5 is generally considered weak.
Correlation analysis and pair trading evaluation for Nasdaq can also be used as hedging techniques within a particular sector or industry or even over random equities to generate a better risk-adjusted return on your portfolios.Use Investing Themes to Complement your Nasdaq position
In addition to having Nasdaq in your portfolios, you can quickly add positions using our predefined set of ideas and optimize them against your very unique investing style. A single investing idea is a collection of funds, stocks, ETFs, or cryptocurrencies that are programmatically selected from a pull of investment themes. After you determine your investment opportunity, you can then find an optimal portfolio that will maximize potential returns on the chosen idea or minimize its exposure to market volatility.Did You Try This Idea?
Run Semiconductor Thematic Idea Now
Semiconductor
Companies involved in production of semiconductor and semiconductor materials. The Semiconductor theme has 38 constituents at this time.
You can either use a buy-and-hold strategy to lock in the entire theme or actively trade it to take advantage of the short-term price volatility of individual constituents. Macroaxis can help you discover thousands of investment opportunities in different asset classes. In addition, you can partner with us for reliable portfolio optimization as you plan to utilize Semiconductor Theme or any other thematic opportunities.
| View All Next | Launch |
Additional Information and Resources on Investing in Nasdaq Stock
When determining whether Nasdaq Inc is a good investment, qualitative aspects like company management, corporate governance, and ethical practices play a significant role. A comparison with peer companies also provides context and helps to understand if Nasdaq Stock is undervalued or overvalued. This multi-faceted approach, blending both quantitative and qualitative analysis, forms a solid foundation for making an informed investment decision about Nasdaq Inc Stock. Highlighted below are key reports to facilitate an investment decision about Nasdaq Inc Stock:Check out Correlation Analysis. You can also try the Alpha Finder module to use alpha and beta coefficients to find investment opportunities after accounting for the risk.
To fully project Nasdaq's future profitability, investors should examine all historical financial statements. These statements provide investors with a comprehensive snapshot of the financial position of Nasdaq Inc at a specified time, usually calculated after every quarter, six months, or one year. Three primary documents fall into the category of financial statements. These documents include Nasdaq's income statement, its balance sheet, and the statement of cash flows.