ServiceNow, Inc.

LSE:0L5N Stock Report

Market Cap: US$211.1b

ServiceNow Valuation

Is 0L5N undervalued compared to its fair value, analyst forecasts and its price relative to the market?

Valuation Score

1/6

Valuation Score 1/6

  • 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 0L5N when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: 0L5N ($1037.94) is trading above our estimate of fair value ($912.26)

Significantly Below Fair Value: 0L5N is trading above our estimate of fair value.

Key Valuation Metric

Which metric is best to use when looking at relative valuation for 0L5N?

Key metric: As 0L5N is barely profitable we use its Price-To-Sales Ratio for relative valuation analysis.

The above table shows the Price to Sales ratio for 0L5N. This is calculated by dividing 0L5N's market cap by their current revenue.
What is 0L5N's PS Ratio?
PS Ratio20.2x
SalesUS$10.46b
Market CapUS$211.06b

Price to Sales Ratio vs Peers

How does 0L5N's PS Ratio compare to its peers?

The above table shows the PS ratio for 0L5N vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyForward PSEstimated GrowthMarket Cap
Peer Average9.4x
PANW Palo Alto Networks
15.7x13.4%US$128.6b
SGE Sage Group
5.4x7.9%UK£12.6b
BLTG Blancco Technology Group
3.9x9.7%UK£173.0m
FTNT Fortinet
12.6x12.2%US$70.9b
0L5N ServiceNow
20.2x16.7%US$211.1b

Price-To-Sales vs Peers: 0L5N is expensive based on its Price-To-Sales Ratio (20.2x) compared to the peer average (11.3x).

Price to Sales Ratio vs Industry

How does 0L5N's PS Ratio compare vs other companies in the GB Software Industry?

11 CompaniesPrice / SalesEstimated GrowthMarket Cap
RM. RM
0.3xn/aUS$81.02m
SWG Shearwater Group
0.4xn/aUS$10.69m
MBO MobilityOne
0.01xn/aUS$3.02m
CCS Crossword Cybersecurity
0.5xn/aUS$2.46m
0L5N 20.2xIndustry Avg. 2.4xNo. of Companies13PS0246810+
11 CompaniesEstimated GrowthMarket Cap
No more companies

Price-To-Sales vs Industry: 0L5N is expensive based on its Price-To-Sales Ratio (20.2x) compared to the UK Software industry average (2.4x).

Price to Sales Ratio vs Fair Ratio

What is 0L5N'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.

0L5N PS Ratio vs Fair Ratio.
Fair Ratio
Current PS Ratio20.2x
Fair PS Ratio30.4x

Price-To-Sales vs Fair Ratio: 0L5N is good value based on its Price-To-Sales Ratio (20.2x) compared to the estimated Fair Price-To-Sales Ratio (30.4x).

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 0L5N forecast and predictions for the stock price in 12 month’s time.
DateShare PriceAverage 1Y Price TargetDispersionHighLow1Y Actual priceAnalysts
CurrentUS$1,047.28
US$1,005.92
-3.9%
9.6%US$1,230.00US$716.00n/a38
Nov ’25US$944.35
US$994.73
+5.3%
8.7%US$1,170.00US$716.00n/a37
Oct ’25US$877.02
US$872.38
-0.5%
6.0%US$950.00US$716.00n/a37
Sep ’25US$841.03
US$869.87
+3.4%
6.8%US$950.00US$640.00n/a37
Aug ’25US$804.09
US$870.49
+8.3%
6.7%US$950.00US$640.00n/a37
Jul ’25US$785.52
US$854.92
+8.8%
5.6%US$950.00US$734.00n/a36
Jun ’25US$643.57
US$856.14
+33.0%
5.5%US$950.00US$734.00n/a37
May ’25US$688.83
US$854.99
+24.1%
5.5%US$950.00US$734.00n/a38
Apr ’25US$767.85
US$840.76
+9.5%
7.1%US$1,000.00US$660.00n/a37
Mar ’25US$776.81
US$832.11
+7.1%
7.2%US$910.00US$660.00n/a37
Feb ’25US$768.38
US$826.18
+7.5%
8.1%US$910.00US$640.00n/a37
Jan ’25US$707.51
US$692.14
-2.2%
9.4%US$820.00US$545.00n/a35
Dec ’24US$692.85
US$654.60
-5.5%
6.1%US$765.00US$545.00n/a35
Nov ’24US$592.22
US$646.92
+9.2%
5.1%US$706.00US$545.00US$944.3536
Oct ’24US$563.13
US$645.77
+14.7%
5.1%US$734.00US$575.00US$877.0235
Sep ’24US$594.00
US$644.06
+8.4%
5.0%US$734.00US$575.00US$841.0334
Aug ’24US$588.77
US$642.59
+9.1%
5.1%US$734.00US$575.00US$804.0934
Jul ’24US$565.07
US$551.74
-2.4%
10.3%US$665.00US$410.00US$785.5234
Jun ’24US$546.74
US$545.73
-0.2%
9.7%US$665.00US$410.00US$643.5734
May ’24US$458.65
US$540.59
+17.9%
9.0%US$650.00US$410.00US$688.8335
Apr ’24US$459.00
US$523.48
+14.0%
10.6%US$640.00US$370.00US$767.8535
Mar ’24US$429.17
US$523.48
+22.0%
10.6%US$640.00US$370.00US$776.8135
Feb ’24US$464.40
US$522.05
+12.4%
11.5%US$640.00US$320.00US$768.3835
Jan ’24US$387.59
US$527.54
+36.1%
12.8%US$641.00US$310.00US$707.5135
Dec ’23US$418.19
US$526.50
+25.9%
12.4%US$641.00US$310.00US$692.8534
Nov ’23US$427.08
US$526.50
+23.3%
12.4%US$641.00US$310.00US$592.2234

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

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