NOW PE Ratio & Valuation,Is NOW Overvalued

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 38.04 is considered Undervalued compared with the five-year average of 62.22. The fair price of ServiceNow Inc (NOW) is between 173.50 to 282.22 according to relative valuation methord. Compared to the current price of 146.28 USD , ServiceNow Inc is Undervalued By 15.69%.

Relative Value

Fair Zone

173.50-282.22

Current Price：146.28

15.69%

Undervalued

38.04

27.35

EV/EBITDA

ServiceNow Inc. (NOW) has a current EV/EBITDA of 27.35. The 5-year average EV/EBITDA is 40.80. The thresholds are as follows: Strongly Undervalued below 21.42, Undervalued between 21.42 and 31.11, Fairly Valued between 50.50 and 31.11, Overvalued between 50.50 and 60.19, and Strongly Overvalued above 60.19. The current Forward EV/EBITDA of 27.35 falls within the Undervalued range.

30.92

EV/EBIT

ServiceNow Inc. (NOW) has a current EV/EBIT of 30.92. The 5-year average EV/EBIT is 49.98. The thresholds are as follows: Strongly Undervalued below 23.31, Undervalued between 23.31 and 36.64, Fairly Valued between 63.32 and 36.64, Overvalued between 63.32 and 76.66, and Strongly Overvalued above 76.66. The current Forward EV/EBIT of 30.92 falls within the Undervalued range.

10.18

ServiceNow Inc. (NOW) has a current PS of 10.18. The 5-year average PS is 13.88. The thresholds are as follows: Strongly Undervalued below 8.20, Undervalued between 8.20 and 11.04, Fairly Valued between 16.72 and 11.04, Overvalued between 16.72 and 19.56, and Strongly Overvalued above 19.56. The current Forward PS of 10.18 falls within the Undervalued range.

25.45

P/OCF

ServiceNow Inc. (NOW) has a current P/OCF of 25.45. The 5-year average P/OCF is 36.76. The thresholds are as follows: Strongly Undervalued below 21.10, Undervalued between 21.10 and 28.93, Fairly Valued between 44.59 and 28.93, Overvalued between 44.59 and 52.42, and Strongly Overvalued above 52.42. The current Forward P/OCF of 25.45 falls within the Undervalued range.

30.33

P/FCF

ServiceNow Inc. (NOW) has a current P/FCF of 30.33. The 5-year average P/FCF is 44.90. The thresholds are as follows: Strongly Undervalued below 25.76, Undervalued between 25.76 and 35.33, Fairly Valued between 54.48 and 35.33, Overvalued between 54.48 and 64.05, and Strongly Overvalued above 64.05. The current Forward P/FCF of 30.33 falls within the Undervalued range.

ServiceNow Inc (NOW) has a current Price-to-Book (P/B) ratio of 13.54. Compared to its 3-year average P/B ratio of 18.78 , the current P/B ratio is approximately -27.91% higher. Relative to its 5-year average P/B ratio of 23.05, the current P/B ratio is about -41.26% higher. ServiceNow Inc (NOW) has a Forward Free Cash Flow (FCF) yield of approximately 2.59%. Compared to its 3-year average FCF yield of 1.96%, the current FCF yield is approximately 31.95% lower. Relative to its 5-year average FCF yield of 1.87% , the current FCF yield is about 38.44% lower.

13.54

P/B

Median3y

18.78

Median5y

23.05

2.59

FCF Yield

Median3y

1.96

Median5y

1.87

Competitors Valuation Multiple

The average P/S ratio for NOW's competitors is 10.05, providing a benchmark for relative valuation. ServiceNow Inc Corp (NOW) exhibits a P/S ratio of 10.18, which is 1.35% above the industry average. Given its robust revenue growth of 21.81%, this premium appears sustainable.

P/S

P/E

EV/EBITDA

EV/EBIT

Revenue Growth

Market Cap

Performance Decomposition

Market capitalization of NOW decreased by 25.91% 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.

21.81%

2.80B → 3.41B

Revenue Growth

-4.66%

15.45 → 14.73

Margin Expansion

-43.06%

156.59 → 89.16

P/E Change

-25.91%

203.68 → 150.90

Mkt Cap Growth

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Frequently Asked Questions

Is ServiceNow Inc (NOW) currently overvalued or undervalued?

What is ServiceNow Inc (NOW) fair value?

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. The fair price of ServiceNow Inc (NOW) is between 173.50 to 282.22 according to relative valuation methord.

How does NOW's valuation metrics compare to the industry average?

What is the current P/B ratio for ServiceNow Inc (NOW) as of Jan 09 2026?

As of Jan 09 2026, ServiceNow Inc (NOW) has a P/B ratio of 13.54. This indicates that the market values NOW at 13.54 times its book value.

What is the current FCF Yield for ServiceNow Inc (NOW) as of Jan 09 2026?

As of Jan 09 2026, ServiceNow Inc (NOW) has a FCF Yield of 2.59%. This means that for every dollar of ServiceNow Inc’s market capitalization, the company generates 2.59 cents in free cash flow.

What is the current Forward P/E ratio for ServiceNow Inc (NOW) as of Jan 09 2026?

As of Jan 09 2026, ServiceNow Inc (NOW) has a Forward P/E ratio of 38.04. This means the market is willing to pay $38.04 for every dollar of ServiceNow Inc’s expected earnings over the next 12 months.

What is the current Forward P/S ratio for ServiceNow Inc (NOW) as of Jan 09 2026?

As of Jan 09 2026, ServiceNow Inc (NOW) has a Forward P/S ratio of 10.18. This means the market is valuing NOW at $10.18 for every dollar of expected revenue over the next 12 months.

NOW Valuation