NOW
CompareServiceNow Inc
Exchange: NYSESector: TechnologyIndustry: Software - Application
ServiceNow is putting AI to work for people. We move at the speed of innovation to help customers transform organizations across industries, with a trusted, human-centered approach to deploying our products and services at scale. Our AI platform for business transformation connects people, processes, data, and devices to increase productivity and maximize business outcomes.
Did you know?
Currently near its 52-week low — in the bottom 1% of its range.
Current Price
$84.78
-17.75%GoodMoat Value
$155.02
82.9% undervaluedProfile
Valuation (TTM)
Market Cap$88.17B
P/E50.44
EV$111.51B
P/B6.80
Shares Out1.04B
P/Sales6.64
Revenue$13.28B
EV/EBITDA28.11
ServiceNow Inc (NOW) Stock Analysis
GoodMoat Analysis
ServiceNow is a high-quality, founder-led enterprise software company with a durable competitive moat built on switching costs and network effects. However, its current valuation at over 61 times earnings requires a high degree of confidence in its long-term growth to justify a margin of safety.
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ServiceNow provides a cloud-based platform that automates digital workflows for enterprise IT, customer service, HR, and security operations. Its primary moat stems from high switching costs, as its software becomes deeply embedded as mission-critical infrastructure, and network effects, where more users and workflows on the platform increase its value for all customers. Applying the GoodMoat framework, the business likely scores highly on Moat criteria like switching costs, founder-led execution, and pricing power, and demonstrates strong Quality Indicators with 20.7% YoY revenue growth, a 13.7% operating margin, and a robust balance sheet (Debt/Equity of 0.19). The company passes the Moat & Quality Gate. The key question is valuation. At a P/E of 61.3, the market prices in exceptional future growth. The provided GoodMoat Target of $155.02 implies a significant potential margin of safety from the current $103.06 price. For a value investor, this presents a scenario classified as 'with caution' under the Decision Framework: the underlying business is strong, but the investment thesis hinges entirely on the stock being deeply undervalued per the DCF model, requiring verification of the model's assumptions against the company's ability to sustain high growth rates and expand profitability to justify its multiple. Analysis based on data as of 2024-05-15.
Market Cap$88.17B
Current Price$84.78
P/E Ratio50.44
Forward P/E—
PEG Ratio9.33
EPS$1.67
Book Value$12.47
P/B Ratio6.80
NOW Financial Charts
NOW 52-Week Range
$83.00
$208.94
50-Day MA: $105.09200-Day MA: $153.08
Did you know?
Trading 83% below its estimated fair value of $155.02.
ServiceNow Inc (NOW) Financial Summary
ServiceNow Inc (NOW) is a Technology company in the Software - Application industry, listed on NYSE. The stock currently trades at $84.78 with a market capitalization of $88.17B.
Key valuation metrics include a P/E ratio of 50.44, price-to-book ratio of 6.80, and EPS of $1.67. The company reports a profit margin of 13.2% and return on equity of 13.5%.
NOW Key Financial Metrics
| Metric | Value |
|---|---|
| Market Cap | $88.17B |
| P/E Ratio | 50.44 |
| EPS | $1.67 |
| P/B Ratio | 6.80 |
| P/S Ratio | 6.64 |
| EV/EBITDA | 28.11 |
| Profit Margin | 13.2% |
| Return on Equity | 13.5% |
| Debt/Equity | 0.19 |
ServiceNow Inc (NOW) Valuation
Based on GoodMoat's DCF model, ServiceNow Inc has a fair value estimate of $155.02. At the current price of $84.78, the stock appears 45.3% undervalued relative to our intrinsic value estimate.
NOW Quality Indicators
ServiceNow Inc maintains a profit margin of 13.2% and an operating margin of 13.7%. Return on equity stands at 13.5%. The current ratio is 1.00. Debt-to-equity ratio is 0.19.
About ServiceNow Inc
ServiceNow is putting AI to work for people. We move at the speed of innovation to help customers transform organizations across industries, with a trusted, human-centered approach to deploying our products and services at scale. Our AI platform for business transformation connects people, processes, data, and devices to increase productivity and maximize business outcomes.
NOW Free Cash Flow
ServiceNow Inc generated $4.58B in trailing twelve-month free cash flow, representing an FCF yield of 5.19%. This strong FCF yield suggests the company generates substantial cash relative to its market value.
NOW Shares Outstanding
ServiceNow Inc has 1.04 billion shares outstanding at a share price of $84.78, giving it a market capitalization of $88.17B.
NOW Recent Insider Trades
Recent insider transactions at ServiceNow Inc include:
| Insider | Type | Shares | Value |
|---|---|---|---|
| McDermott William R (Chairman & CEO) | BUY | 28,677 | $3.00M |
| Fipps Paul (President, Global Customer Ops) | SELL | 3,696 | $376141.92 |
| Fipps Paul (President, Global Customer Ops) | SELL | 9,641 | $1.02M |