NDAQNEUTRAL

NDAQ P/E Ratio Analysis

28.3x

Updated 225h ago·SEC filings & market data

Key Takeaway

The P/E ratio compares a stock's price to its earnings per share, showing how much investors pay for each dollar of profit.

Sector Performance

61th percentile

NDAQ

28.3x

Sector Median

23.1x

Sector Avg

33.7x

Prior Period

26.5x(Jul 2026)

↓ Declining

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Deep Analysis

The P/E ratio compares a stock's price to its earnings per share, showing how much investors pay for each dollar of profit.

At 26.5x, NDAQ's P/E is above the sector median of 24.3x, placing it in the 56th percentile among peers—meaning it is slightly more expensive than most in its sector. The ratio has been trending upward over the last eight quarters, increasing 14.8% year-over-year and 1.9% quarter-over-quarter. A rising P/E at an already above-median level suggests that investor expectations for future earnings growth are already priced in, limiting further upside potential if growth disappoints. This combination of an elevated level with an increasing trend introduces additional risk, as any earnings miss could lead to a sharper valuation correction. The metric aligns with the overall NEUTRAL verdict by indicating that NDAQ is not clearly undervalued or overvalued, but its premium positioning warrants caution.

Frequently Asked Questions

What does the P/E Ratio tell investors about NDAQ?

Measures how much investors pay per dollar of earnings. A high P/E signals growth expectations; a low P/E may indicate undervaluation or slow growth.

How is the P/E Ratio calculated?

P/E Ratio is calculated as: Price / EPS.

Who are NDAQ's closest peers by P/E Ratio?

The closest peers by P/E Ratio include: WELL (102.4x), IAC (104.9x), FORM (108.1x), MCHP (113.5x), MTSI (118.9x).

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The Formula

Price / EPS

Why It Matters

Measures how much investors pay per dollar of earnings. A high P/E signals growth expectations; a low P/E may indicate undervaluation or slow growth.