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 $62.338. Nasdaq's Revenue per Share for the trailing twelve months (TTM) ended in Dec. 2023 was $11.93. Hence, Nasdaq's PS Ratio for today is 5.23.
Warning Sign:
Nasdaq Inc stock PS Ratio (=5.16) is close to 2-year high of 5.65
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: 1.56 Med: 3.59 Max: 6.07
Current: 5.22
During the past 13 years, Nasdaq's highest PS Ratio was 6.07. The lowest was 1.56. And the median was 3.59.
NDAQ's PS Ratio is ranked worse than
57.88% of 755 companies
in the Capital Markets industry
Industry Median: 3.99 vs NDAQ: 5.22
Nasdaq's Revenue per Sharefor the three months ended in Dec. 2023 was $2.99. Its Revenue per Share for the trailing twelve months (TTM) ended in Dec. 2023 was $11.93.
Warning Sign:
Nasdaq Inc revenue per share is in decline over the past 12 months.
During the past 12 months, the average Revenue per Share Growth Rate of Nasdaq was -4.60% 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 Annual Data | |||||||||||
Trend | Dec14 | Dec15 | Dec16 | Dec17 | Dec18 | Dec19 | Dec20 | Dec21 | Dec22 | Dec23 | |
PS Ratio | 4.20 | 3.94 | 6.01 | 4.91 | 4.87 |
Nasdaq Quarterly Data | ||||||||||||||||||||
Mar19 | Jun19 | Sep19 | Dec19 | Mar20 | Jun20 | Sep20 | Dec20 | Mar21 | Jun21 | Sep21 | Dec21 | Mar22 | Jun22 | Sep22 | Dec22 | Mar23 | Jun23 | Sep23 | Dec23 | |
PS Ratio | 4.91 | 4.36 | 4.05 | 4.01 | 4.87 |
Competitive Comparison
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 PS Ratio Distribution
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) |
= | 62.338 | / | 11.927 | |
= | 5.23 |
Nasdaq's Share Price of today is $62.338.
Nasdaq's Revenue per Share for the trailing twelve months (TTM) ended in Dec. 2023 adds up the quarterly data reported by the company within the most recent 12 months, which was $11.93.
* 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 (NAS:NDAQ) Business Description
Industry
GURUFOCUS.COM »STOCK LIST »Financial Services » Capital Markets » Nasdaq Inc (NAS:NDAQ) » Definitions » PS Ratio
Comparable Companies
MSCI CBOE FDS MORN COIN DNB MCO OTCM HNOI VALU SPGI ICE CME LSE:LSEG XTER:DB1 HKSE:00388 SZSE:300059 TSE:8697 BSP:B3SA3 XPAR:ENX
Traded in Other Exchanges
NDAQ:Mexico NAQ:Germany NAQ:Germany NAQ:Germany N1DA34:Brazil NDAQ:Austria
Address
151 W. 42nd Street, New York, NY, USA, 10036
Website
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
Adenza Parent, Lp | director, 10 percent owner | ONE MARKET PLAZA, SPEAR TOWER, SUITE 2400, SAN FRANCISCO CA 94150 |
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 |
Bryan Everard Smith | officer: Executive Vice President | 151 W. 42ND STREET, NEW YORK NY 10036 |
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 |
Jeremy Skule | officer: Executive Vice President | ONE LIBERTY PLAZA, NEW YORK MD 20850 |
Bradley J Peterson | officer: Executive Vice President | ONE LIBERTY PLAZA, NEW YORK NY 10006 |
Pc Nelson Griggs | officer: Executive Vice President | ONE LIBERTY PLAZA, NEW YORK NY 10006 |
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