NOW PE Ratio & Valuation, Is NOW Overvalued

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 61.22. The fair price of ServiceNow Inc (NOW) is between 184.35 to 268.39 according to relative valuation method. Compared to the current price of 117.30 USD , ServiceNow Inc By Undervalued By 36.37%.

Relative Value

Fair Zone

184.35-268.39

Current Price：117.30

36.37%

Undervalued

P/E

EV/EBITDA

EV/EBIT

P/S

P/OCF

P/FCF

Trailing

Forward

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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 18.85, the current P/B ratio is approximately -28.15% higher. Relative to its 5-year average P/B ratio of 22.55, the current P/B ratio is about -39.96% 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 1.93%, the current FCF yield is approximately 33.98% lower. Relative to its 5-year average FCF yield of 1.89%, the current FCF yield is about 36.99% lower.

Competitors Valuation Multiple

AI Analysis

The average P/S ratio for NOW competitors is 20.07, providing a benchmark for relative valuation. ServiceNow Inc Corp (NOW.N) exhibits a P/S ratio of --, which is -100% above the industry average. Given its robust revenue growth of 20.66%, this premium appears sustainable.

P/E

P/S

EV/EBITDA

EV/EBIT

Earnings Growth

Market Cap

Performance Decomposition

AI Analysis

Market capitalization of NOW increased by 0.00% over the past 1 year(s). The primary factor behind the change was an decrease in Unknown from 0.00 to 0.00.

The secondary factor is the Unknown, contributed 0.00% to the performance.

Overall, the performance of NOW in the past 1 year(s) is driven by Unknown.

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Frequently Asked Questions

Is 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 184.35 to 268.39 according to relative valuation method.

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

The average P/S ratio for NOW's competitors is 20.07, providing a benchmark for relative valuation. ServiceNow Inc Corp (NOW) exhibits a P/S ratio of --, which is -100.00% above the industry average. Given its robust revenue growth of 20.66%, this premium appears sustainable.

What is the current P/B ratio for ServiceNow Inc (NOW) as of Mar 10 2026?

As of Mar 10 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 Mar 10 2026?

As of Mar 10 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 Mar 10 2026?

As of Mar 10 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 Mar 10 2026?

As of Mar 10 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