ServiceNow Valuation

Is SNOW undervalued compared to its fair value, analyst forecasts and its price relative to the market?

Valuation Score

0/6

Valuation Score 0/6

  • Below Fair Value

  • Significantly Below Fair Value

  • Price-To-Sales vs Peers

  • Price-To-Sales vs Industry

  • Price-To-Sales vs Fair Ratio

  • Analyst Forecast

Share Price vs Fair Value

What is the Fair Price of SNOW when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: SNOW (€1041.4) is trading above our estimate of fair value (€937.27)

Significantly Below Fair Value: SNOW is trading above our estimate of fair value.


Key Valuation Metric

Which metric is best to use when looking at relative valuation for SNOW?

Key metric: As SNOW is barely profitable we use its Price-To-Sales Ratio for relative valuation analysis.

The above table shows the Price to Sales ratio for SNOW. This is calculated by dividing SNOW's market cap by their current revenue.
What is SNOW's PS Ratio?
PS Ratio21.5x
SalesUS$10.46b
Market CapUS$225.14b

Price to Sales Ratio vs Peers

How does SNOW's PS Ratio compare to its peers?

The above table shows the PS ratio for SNOW vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyForward PSEstimated GrowthMarket Cap
Peer Average15.1x
PANW Palo Alto Networks
14.9x13.0%US$122.6b
ORCL Oracle
8.6x11.9%US$474.5b
FTNT Fortinet
12.9x12.3%US$74.5b
CRWD CrowdStrike Holdings
23.8x17.8%US$89.2b
SNOW ServiceNow
21.5x16.9%€225.1b

Price-To-Sales vs Peers: SNOW is expensive based on its Price-To-Sales Ratio (21.5x) compared to the peer average (15.1x).


Price to Sales Ratio vs Industry

How does SNOW's PS Ratio compare vs other companies in the European Software Industry?

44 CompaniesPrice / SalesEstimated GrowthMarket Cap
SNOW 21.5xIndustry Avg. 2.1xNo. of Companies50PS0246810+
44 CompaniesEstimated GrowthMarket Cap
No more companies

Price-To-Sales vs Industry: SNOW is expensive based on its Price-To-Sales Ratio (21.5x) compared to the European Software industry average (2.1x).


Price to Sales Ratio vs Fair Ratio

What is SNOW's PS Ratio compared to its Fair PS Ratio? This is the expected PS Ratio taking into account the company's forecast earnings growth, profit margins and other risk factors.

SNOW PS Ratio vs Fair Ratio.
Fair Ratio
Current PS Ratio21.5x
Fair PS Ration/a

Price-To-Sales vs Fair Ratio: Insufficient data to calculate SNOW's Price-To-Sales Fair Ratio for valuation analysis.


Analyst Price Targets

What is the analyst 12-month forecast and do we have any statistical confidence in the consensus price target?

The above table shows the analyst SNOW forecast and predictions for the stock price in 12 month’s time.
DateShare PriceAverage 1Y Price TargetDispersionHighLow1Y Actual priceAnalysts
Current€1,041.40
€1,019.20
-2.1%
13.4%€1,245.92€686.21n/a37
Dec ’25€993.00
€956.19
-3.7%
10.4%€1,181.25€676.62n/a38
Nov ’25€873.90
€919.63
+5.2%
8.7%€1,081.67€661.94n/a37
Oct ’25€791.80
€788.11
-0.5%
6.0%€858.23€646.83n/a37
Sep ’25€756.80
€797.06
+5.3%
6.8%€870.49€586.43n/a37
Aug ’25€759.00
€801.72
+5.6%
6.7%€874.95€589.44n/a37
Jul ’25€733.80
€797.73
+8.7%
5.6%€886.45€684.90n/a36
Jun ’25€591.80
€795.95
+34.5%
5.5%€883.22€682.40n/a37
May ’25€656.40
€800.96
+22.0%
5.5%€889.96€687.61n/a38
Apr ’25€700.00
€769.80
+10.0%
7.1%€915.60€604.30n/a37
Mar ’25€714.60
€772.20
+8.1%
7.2%€844.48€612.48n/a37
Feb ’25€706.40
€762.81
+8.0%
8.1%€840.20€590.91n/a37
Jan ’25€640.80
€623.27
-2.7%
9.4%€738.41€490.77n/a35
Dec ’24€631.00
€601.90
-4.6%
6.1%€703.42€501.13€993.0035
Nov ’24€555.20
€612.24
+10.3%
5.1%€668.16€515.79€873.9036
Oct ’24€532.80
€606.83
+13.9%
5.1%€689.74€540.33€791.8035
Sep ’24€551.20
€590.67
+7.2%
5.0%€673.15€527.33€756.8034
Aug ’24€537.40
€582.89
+8.5%
5.1%€665.81€521.58€759.0034
Jul ’24€515.40
€505.50
-1.9%
10.3%€609.27€375.64€733.8034
Jun ’24€506.20
€510.64
+0.9%
9.7%€622.24€383.64€591.8034
May ’24€404.90
€490.59
+21.2%
9.0%€589.88€372.08€656.4035
Apr ’24€420.15
€487.94
+16.1%
10.6%€596.54€344.88€700.0035
Mar ’24€400.35
€487.94
+21.9%
10.6%€596.54€344.88€714.6035
Feb ’24€418.80
€475.22
+13.5%
11.5%€582.59€291.30€706.4035
Jan ’24€364.75
€495.83
+35.9%
12.8%€602.48€291.37€640.8035
Dec ’23€401.95
€532.92
+32.6%
12.4%€648.82€313.78€631.0034

Analyst Forecast: Target price is lower than the current share price.


Discover undervalued companies

Company Analysis and Financial Data Status

DataLast Updated (UTC time)
Company Analysis2024/12/23 16:38
End of Day Share Price 2024/12/23 00:00
Earnings2024/09/30
Annual Earnings2023/12/31

Data Sources

The data used in our company analysis is from S&P Global Market Intelligence LLC. The following data is used in our analysis model to generate this report. Data is normalised which can introduce a delay from the source being available.

PackageDataTimeframeExample US Source *
Company Financials10 years
  • Income statement
  • Cash flow statement
  • Balance sheet
Analyst Consensus Estimates+3 years
  • Forecast financials
  • Analyst price targets
Market Prices30 years
  • Stock prices
  • Dividends, Splits and Actions
Ownership10 years
  • Top shareholders
  • Insider trading
Management10 years
  • Leadership team
  • Board of directors
Key Developments10 years
  • Company announcements

* example for US securities, for non-US equivalent regulatory forms and sources are used.

Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.

Analysis Model and Snowflake

Details of the analysis model used to generate this report is available on our Github page, we also have guides on how to use our reports and tutorials on Youtube.

Learn about the world class team who designed and built the Simply Wall St analysis model.

Industry and Sector Metrics

Our industry and section metrics are calculated every 6 hours by Simply Wall St, details of our process are available on .

Analyst Sources

ServiceNow, Inc. is covered by 70 analysts. 39 of those analysts submitted the estimates of revenue or earnings used as inputs to our report. Analysts submissions are updated throughout the day.

AnalystInstitution
Adam ShepherdArete Research Services LLP
Joseph BonnerArgus Research Company
Dimitri KallianiotisAtlantic Equities LLP