S&P500 outperforms NASDAQ by 20% over same period

S&P500 over the same period. That percentage is 20% more than the 27% drop in NASDAQ stock (NASDAQ: NDAQ).

   NEW YORK CITY, UNITED STATES - A logo of the Nasdaq Stock Market (Photo by Alex Tai/SOPA ... [+] Images/LightRocket via Getty Images) 
  SOPA Images/LightRocket via Getty Images
NEW YORK CITY, UNITED STATES - A symbol of the Nasdaq Stock Market (Photo by Alex Tai/SOPA Images/LightRocket via Getty Images)

NASDAQ stock (NASDAQ NDAQ : NDAQ) has lost roughly 27% YTD as compared to the 20% drop in the S&P500 index over the same period, and at its current price of $153 per share, it is trading 25% below its fair value of $204 – Trefis’ estimate for NASDANQ's valuation. The exchange surpassed the consensus estimates for earnings in the first quarter of 2022, while revenues were in line with expectations driven by a 15% rise in non trading revenues partially offset by a 6% drop in market services (trading revenues). The solutions segment was partly up due to organic growth and partly due to net impact from acquisitions & divestitures despite revenue growth, net income declined 5%.

The trading revenues mainly suffered in Q1 due to lower cash equity volume than the previous year. The cash equity volume in the U.S., however, increased in April and May (as per the monthly volume report of May 2022). Further, with the current uncertainty in broader markets, trading volume is likely to remain elevated for some more time, benefiting trading revenues. Overall, consensus estimates for Q2 revenues and earnings are $885.36 million and $1.94 respectively

The company's total revenues grew 5% y-o-y to $5.9 billion in 2021, which translated into net revenues of $3.4 billion – up 18% y-o-y. We forecast https://www.trefis.ga:track>00 in FY2022.Additionally, NDAQ’s adjusted net income margin is likely to see a slight drop in the year, leading to an adjusted net income of $1.1.billion and an annual GAA GAA P EPS of "over 31x will lead to the valuation of $204."

Our previous coverage of NASDAQ stock, where you can track our view over time, is here.

With inflation rising and the Fed raising interest rates, NASDAQ has fallen 27% this year. Can it drop more? See how low can NASDAQ stock go by comparing its decline in previous market crashes.

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   NDAQ Return compared to Trefis Multi-Strategy Portfolio 
The NDAQ Return outperformed the Trefis Multi-Strategy Portfolio.

Trefis Price Estimates can be seen on https://www