NOW Valuation

ServiceNow Inc

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947.780

-13.37(-1.391%)1D

Overview
Forecast
Valuation
Earnings

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 Fair zone, suggesting that its current forward PE ratio of 52.97 is considered Fairly compared with the five-year average of 65.58. The fair price of ServiceNow Inc (NOW) is between 830.60 to 1394.85 according to relative valuation methord.

Relative Value

Fair Zone

830.60-1394.85

Current Price：961.15

Fair

52.23

Trailing

Forward

37.37

EV/EBITDA

ServiceNow Inc. (NOW) has a current EV/EBITDA of 37.37. The 5-year average EV/EBITDA is 42.54. The thresholds are as follows: Strongly Undervalued below 21.27, Undervalued between 21.27 and 31.91, Fairly Valued between 53.18 and 31.91, Overvalued between 53.18 and 63.82, and Strongly Overvalued above 63.82. The current Forward EV/EBITDA of 37.37 falls within the Historic Trend Line -Fairly Valued range.

43.41

EV/EBIT

ServiceNow Inc. (NOW) has a current EV/EBIT of 43.41. The 5-year average EV/EBIT is 52.52. The thresholds are as follows: Strongly Undervalued below 23.30, Undervalued between 23.30 and 37.91, Fairly Valued between 67.13 and 37.91, Overvalued between 67.13 and 81.74, and Strongly Overvalued above 81.74. The current Forward EV/EBIT of 43.41 falls within the Historic Trend Line -Fairly Valued range.

13.93

ServiceNow Inc. (NOW) has a current PS of 13.93. The 5-year average PS is 14.29. The thresholds are as follows: Strongly Undervalued below 8.22, Undervalued between 8.22 and 11.26, Fairly Valued between 17.32 and 11.26, Overvalued between 17.32 and 20.36, and Strongly Overvalued above 20.36. The current Forward PS of 13.93 falls within the Historic Trend Line -Fairly Valued range.

36.26

P/OCF

ServiceNow Inc. (NOW) has a current P/OCF of 36.26. The 5-year average P/OCF is 38.07. The thresholds are as follows: Strongly Undervalued below 21.24, Undervalued between 21.24 and 29.65, Fairly Valued between 46.48 and 29.65, Overvalued between 46.48 and 54.89, and Strongly Overvalued above 54.89. The current Forward P/OCF of 36.26 falls within the Historic Trend Line -Fairly Valued range.

43.48

P/FCF

ServiceNow Inc. (NOW) has a current P/FCF of 43.48. The 5-year average P/FCF is 46.55. The thresholds are as follows: Strongly Undervalued below 26.04, Undervalued between 26.04 and 36.30, Fairly Valued between 56.81 and 36.30, Overvalued between 56.81 and 67.06, and Strongly Overvalued above 67.06. The current Forward P/FCF of 43.48 falls within the Historic Trend Line -Fairly Valued range.

ServiceNow Inc (NOW) has a current Price-to-Book (P/B) ratio of 18.25. Compared to its 3-year average P/B ratio of 18.93 , the current P/B ratio is approximately -3.60% higher. Relative to its 5-year average P/B ratio of 24.34, the current P/B ratio is about -25.03% higher. ServiceNow Inc (NOW) has a Forward Free Cash Flow (FCF) yield of approximately 1.93%. Compared to its 3-year average FCF yield of 1.99%, the current FCF yield is approximately -2.78% lower. Relative to its 5-year average FCF yield of 1.81% , the current FCF yield is about 6.79% lower.

17.99

P/B

Median3y

18.93

Median5y

24.34

1.93

FCF Yield

Median3y

1.99

Median5y

1.81

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 22.38%, this premium appears sustainable.

P/S

P/E

EV/EBITDA

EV/EBIT

P/S

Revenue Growth

Market Cap

Palo Alto Networks Inc

Loss

15.84%

139.25B

Performance Decomposition

Market capitalization of NOW increased by 5.97% over the past 1 year. The primary factor behind the change was an increase in Revenue Growth from 2.63B to 3.22B.

The secondary factor is the Margin Expansion, contributed 20.16%to the performance.

Overall, the performance of NOW in the past 1 year is driven by Revenue Growth. Which is more sustainable.

22.38%

2.63B → 3.22B

Revenue Growth

20.16%

9.97 → 11.98

Margin Expansion

-36.57%

188.03 → 119.26

P/E Change

5.97%