NOW Relative Valuation
NOW's fair value is calculated using relative valuation, based on historical P/E and P/S ranges and their premiums/discounts relative to a competitor average, adjusted by weights. If the market price exceeds this fair value range, NOW is overvalued; if below, it's undervalued.
Historical Valuation
ServiceNow Inc (NOW) is now in the Undervalued zone, suggesting that its current forward PE ratio of 43.06 is considered Undervalued compared with the five-year average of 63.29. The fair price of ServiceNow Inc (NOW) is between 927.42 to 1496.70 according to relative valuation methord. Compared to the current price of 835.77 USD , ServiceNow Inc is Undervalued By 9.88%.
Relative Value
Fair Zone
927.42-1496.70
Current Price：835.77
9.88%
Undervalued
43.37
PE
1Y
3Y
5Y
Trailing
Forward
31.08
EV/EBITDA
ServiceNow Inc. (NOW) has a current EV/EBITDA of 31.08. The 5-year average EV/EBITDA is 41.38. The thresholds are as follows: Strongly Undervalued below 21.30, Undervalued between 21.30 and 31.34, Fairly Valued between 51.42 and 31.34, Overvalued between 51.42 and 61.46, and Strongly Overvalued above 61.46. The current Forward EV/EBITDA of 31.08 falls within the Undervalued range.
35.15
EV/EBIT
ServiceNow Inc. (NOW) has a current EV/EBIT of 35.15. The 5-year average EV/EBIT is 50.81. The thresholds are as follows: Strongly Undervalued below 23.18, Undervalued between 23.18 and 36.99, Fairly Valued between 64.63 and 36.99, Overvalued between 64.63 and 78.45, and Strongly Overvalued above 78.45. The current Forward EV/EBIT of 35.15 falls within the Undervalued range.
11.50
PS
ServiceNow Inc. (NOW) has a current PS of 11.50. The 5-year average PS is 14.02. The thresholds are as follows: Strongly Undervalued below 8.20, Undervalued between 8.20 and 11.11, Fairly Valued between 16.94 and 11.11, Overvalued between 16.94 and 19.85, and Strongly Overvalued above 19.85. The current Forward PS of 11.50 falls within the Historic Trend Line -Fairly Valued range.
28.56
P/OCF
ServiceNow Inc. (NOW) has a current P/OCF of 28.56. The 5-year average P/OCF is 37.21. The thresholds are as follows: Strongly Undervalued below 21.10, Undervalued between 21.10 and 29.16, Fairly Valued between 45.26 and 29.16, Overvalued between 45.26 and 53.31, and Strongly Overvalued above 53.31. The current Forward P/OCF of 28.56 falls within the Undervalued range.
34.16
P/FCF
ServiceNow Inc. (NOW) has a current P/FCF of 34.16. The 5-year average P/FCF is 45.46. The thresholds are as follows: Strongly Undervalued below 25.80, Undervalued between 25.80 and 35.63, Fairly Valued between 55.29 and 35.63, Overvalued between 55.29 and 65.13, and Strongly Overvalued above 65.13. The current Forward P/FCF of 34.16 falls within the Undervalued range.
ServiceNow Inc (NOW) has a current Price-to-Book (P/B) ratio of 15.30. Compared to its 3-year average P/B ratio of 18.84 , the current P/B ratio is approximately -18.81% higher. Relative to its 5-year average P/B ratio of 23.46, the current P/B ratio is about -34.79% higher. ServiceNow Inc (NOW) has a Forward Free Cash Flow (FCF) yield of approximately 0.00%. Compared to its 3-year average FCF yield of 1.96%, the current FCF yield is approximately -100.00% lower. Relative to its 5-year average FCF yield of 1.85% , the current FCF yield is about -100.00% lower.
15.41
P/B
Median3y
18.84
Median5y
23.46
2.29
FCF Yield
Median3y
1.96
Median5y
1.85
Competitors Valuation Multiple
The average P/S ratio for NOW's competitors is , providing a benchmark for relative valuation. ServiceNow Inc Corp (NOW) exhibits a P/S ratio of , which is NaN% above the industry average. Given its robust revenue growth of 21.81%, this premium appears sustainable.
P/S
P/E
EV/EBITDA
EV/EBIT
P/S
Revenue Growth
Market Cap
Performance Decomposition
1Y
3Y
5Y
Market capitalization of NOW decreased by 20.87% over the past 1 year. The primary factor behind the change was an increase in Revenue Growth from 2.80B to 3.41B.
The secondary factor is the Margin Expansion, contributed -4.66%to the performance.
Overall, the performance of NOW in the past 1 year is driven by Revenue Growth. Which is more sustainable.
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