ServiceNow Valuation
Is NOWW * undervalued compared to its fair value, analyst forecasts and its price relative to the market?
Valuation Score
0/6Valuation 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 NOWW * when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.
Below Fair Value: NOWW * (MX$21465.69) is trading above our estimate of fair value (MX$14173.36)
Significantly Below Fair Value: NOWW * is trading above our estimate of fair value.
Key Valuation Metric
Which metric is best to use when looking at relative valuation for NOWW *?
Key metric: As NOWW * is barely profitable we use its Price-To-Sales Ratio for relative valuation analysis.
| What is NOWW *'s PS Ratio? | |
|---|---|
| PS Ratio | 20.2x |
| Sales | US$10.46b |
| Market Cap | US$211.06b |
| Key Statistics | |
|---|---|
| Enterprise Value/Revenue | 19.5x |
| Enterprise Value/EBITDA | 111.9x |
| PEG Ratio | 7.3x |
Price to Sales Ratio vs Peers
How does NOWW *'s PS Ratio compare to its peers?
| Company | Forward PS | Estimated Growth | Market Cap |
|---|---|---|---|
| Peer Average | 15.8x | ||
PANW Palo Alto Networks | 15.7x | 13.4% | US$128.6b |
FTNT Fortinet | 12.6x | 12.2% | US$70.9b |
ORCL Oracle | 9.9x | 10.8% | US$528.6b |
CRWD CrowdStrike Holdings | 24.9x | 18.2% | US$85.8b |
NOWW * ServiceNow | 20.6x | 16.7% | Mex$211.1b |
Price-To-Sales vs Peers: NOWW * is expensive based on its Price-To-Sales Ratio (20.6x) compared to the peer average (15.8x).
Price to Sales Ratio vs Industry
How does NOWW *'s PS Ratio compare vs other companies in the Global Software Industry?
| 250 Companies | Price / Sales | Estimated Growth | Market Cap |
|---|---|---|---|
| 250 Companies | Estimated Growth | Market Cap | |
|---|---|---|---|
Price-To-Sales vs Industry: NOWW * is expensive based on its Price-To-Sales Ratio (20.6x) compared to the Global Software industry average (3.2x).
Price to Sales Ratio vs Fair Ratio
What is NOWW *'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.
| Fair Ratio | |
|---|---|
| Current PS Ratio | 20.2x |
| Fair PS Ratio | n/a |
Price-To-Sales vs Fair Ratio: Insufficient data to calculate NOWW *'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?
| Date | Share Price | Average 1Y Price Target | Dispersion | High | Low | 1Y Actual price | Analysts |
|---|---|---|---|---|---|---|---|
| Current | Mex$20,600.00 | Mex$20,568.33 -0.2% | 9.6% | Mex$25,150.06 | Mex$14,640.20 | n/a | 38 |
| Nov ’25 | Mex$19,176.00 | Mex$19,924.20 +3.9% | 8.7% | Mex$23,434.75 | Mex$14,341.27 | n/a | 37 |
| Oct ’25 | Mex$17,465.00 | Mex$17,110.24 -2.0% | 6.0% | Mex$18,632.54 | Mex$14,043.05 | n/a | 37 |
| Sep ’25 | Mex$15,977.90 | Mex$16,662.02 +4.3% | 6.8% | Mex$18,196.87 | Mex$12,258.94 | n/a | 37 |
| Aug ’25 | Mex$14,832.00 | Mex$16,053.91 +8.2% | 6.7% | Mex$17,520.28 | Mex$11,803.14 | n/a | 37 |
| Jul ’25 | n/a | Mex$15,508.24 0% | 5.6% | Mex$17,233.00 | Mex$13,314.76 | n/a | 36 |
| Jun ’25 | Mex$11,040.00 | Mex$14,470.53 +31.1% | 5.5% | Mex$16,057.00 | Mex$12,406.14 | n/a | 37 |
| May ’25 | Mex$12,250.00 | Mex$14,643.28 +19.5% | 5.5% | Mex$16,270.46 | Mex$12,571.07 | n/a | 38 |
| Apr ’25 | Mex$12,612.00 | Mex$14,024.70 +11.2% | 7.1% | Mex$16,681.00 | Mex$11,009.46 | n/a | 37 |
| Mar ’25 | Mex$13,100.00 | Mex$14,272.61 +9.0% | 7.2% | Mex$15,608.59 | Mex$11,320.52 | n/a | 37 |
| Feb ’25 | Mex$13,500.00 | Mex$14,228.81 +5.4% | 8.1% | Mex$15,672.48 | Mex$11,022.40 | n/a | 37 |
| Jan ’25 | Mex$12,025.00 | Mex$11,705.73 -2.7% | 9.4% | Mex$13,868.09 | Mex$9,217.20 | n/a | 35 |
| Dec ’24 | Mex$11,800.00 | Mex$11,257.16 -4.6% | 6.1% | Mex$13,155.71 | Mex$9,372.37 | n/a | 35 |
| Nov ’24 | Mex$10,455.11 | Mex$11,713.40 +12.0% | 5.1% | Mex$12,783.19 | Mex$9,868.04 | Mex$19,176.00 | 36 |
| Oct ’24 | Mex$9,656.98 | Mex$11,054.64 +14.5% | 5.1% | Mex$12,564.98 | Mex$9,843.14 | Mex$17,465.00 | 35 |
| Sep ’24 | Mex$9,833.50 | Mex$11,026.54 +12.1% | 5.0% | Mex$12,566.37 | Mex$9,844.23 | Mex$15,977.90 | 34 |
| Aug ’24 | Mex$9,427.00 | Mex$10,719.27 +13.7% | 5.1% | Mex$12,244.15 | Mex$9,591.81 | Mex$14,832.00 | 34 |
| Jul ’24 | Mex$9,667.00 | Mex$9,422.09 -2.5% | 10.3% | Mex$11,356.34 | Mex$7,001.65 | n/a | 34 |
| Jun ’24 | Mex$9,568.01 | Mex$9,653.08 +0.9% | 9.7% | Mex$11,762.79 | Mex$7,252.24 | Mex$11,040.00 | 34 |
| May ’24 | Mex$8,252.20 | Mex$9,719.83 +17.8% | 9.0% | Mex$11,686.94 | Mex$7,371.76 | Mex$12,250.00 | 35 |
| Apr ’24 | Mex$8,360.00 | Mex$10,026.68 +19.9% | 10.6% | Mex$12,258.50 | Mex$7,086.94 | Mex$12,612.00 | 35 |
| Mar ’24 | n/a | Mex$10,026.68 0% | 10.6% | Mex$12,258.50 | Mex$7,086.94 | Mex$13,100.00 | 35 |
| Feb ’24 | Mex$8,832.15 | Mex$9,721.12 +10.1% | 11.5% | Mex$11,917.44 | Mex$5,958.72 | Mex$13,500.00 | 35 |
| Jan ’24 | Mex$7,360.91 | Mex$10,278.22 +39.6% | 12.8% | Mex$12,488.86 | Mex$6,039.85 | Mex$12,025.00 | 35 |
| Dec ’23 | Mex$7,612.95 | Mex$10,432.28 +37.0% | 12.4% | Mex$12,701.03 | Mex$6,142.46 | Mex$11,800.00 | 34 |
| Nov ’23 | Mex$8,315.00 | Mex$10,432.28 +25.5% | 12.4% | Mex$12,701.03 | Mex$6,142.46 | Mex$10,455.11 | 34 |
Analyst Forecast: Target price is lower than the current share price.
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