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Nasdaq, Inc. (NDAQ) reported a 19.6% gain in Q1 free cash flow (FCF) yesterday and decided to hike its dividend by 13%. This gives NDAQ stock a 1.44% yield, higher than its average yield, implying it's about 20% undervalued.
Based on our review of its FCF and FCF margins, as well as its historical dividend yield and forward price/earnings (P/E) metrics, NDAQ could be worth at least 20% more at $90 per share. This article will discuss its undervaluation.