ServiceNow, Inc.

NYSE:NOW Stock Report

Market Cap: US$221.8b

ServiceNow Valuation

Is NOW 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 NOW when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: NOW ($1091.25) is trading above our estimate of fair value ($933.37)

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

Key Valuation Metric

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

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

The above table shows the Price to Sales ratio for NOW. This is calculated by dividing NOW's market cap by their current revenue.
What is NOW's PS Ratio?
PS Ratio21.5x
SalesUS$10.46b
Market CapUS$221.76b

Price to Sales Ratio vs Peers

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

The above table shows the PS ratio for NOW 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
14.8x13.0%US$124.3b
ORCL Oracle
8.6x11.9%US$472.1b
FTNT Fortinet
13x12.3%US$72.7b
CRWD CrowdStrike Holdings
23.9x17.8%US$86.5b
NOW ServiceNow
21.5x16.9%US$221.8b

Price-To-Sales vs Peers: NOW 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 NOW's PS Ratio compare vs other companies in the US Software Industry?

79 CompaniesPrice / SalesEstimated GrowthMarket Cap
VYX NCR Voyix
0.6x-22.3%US$2.03b
PGY Pagaya Technologies
0.7x15.5%US$641.54m
XPER Xperi
0.9x1.8%US$457.27m
EGHT 8x8
0.5x1.5%US$351.48m
NOW 21.5xIndustry Avg. 5.5xNo. of Companies79PS048121620+
79 CompaniesEstimated GrowthMarket Cap
No more companies

Price-To-Sales vs Industry: NOW is expensive based on its Price-To-Sales Ratio (21.5x) compared to the US Software industry average (5.5x).

Price to Sales Ratio vs Fair Ratio

What is NOW'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.

NOW PS Ratio vs Fair Ratio.
Fair Ratio
Current PS Ratio21.5x
Fair PS Ratio21.5x

Price-To-Sales vs Fair Ratio: NOW is expensive based on its Price-To-Sales Ratio (21.5x) compared to the estimated Fair Price-To-Sales Ratio (21.5x).

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 NOW forecast and predictions for the stock price in 12 month’s time.
DateShare PriceAverage 1Y Price TargetDispersionHighLow1Y Actual priceAnalysts
CurrentUS$1,091.25
US$1,063.44
-2.5%
13.4%US$1,300.00US$716.00n/a37
Dec ’25US$1,049.44
US$1,011.85
-3.6%
10.4%US$1,250.00US$716.00n/a38
Nov ’25US$943.41
US$994.73
+5.4%
8.7%US$1,170.00US$716.00n/a37
Oct ’25US$867.18
US$872.38
+0.6%
6.0%US$950.00US$716.00n/a37
Sep ’25US$855.00
US$869.87
+1.7%
6.8%US$950.00US$640.00n/a37
Aug ’25US$811.38
US$870.49
+7.3%
6.7%US$950.00US$640.00n/a37
Jul ’25US$788.96
US$854.92
+8.4%
5.6%US$950.00US$734.00n/a36
Jun ’25US$656.93
US$856.14
+30.3%
5.5%US$950.00US$734.00n/a37
May ’25US$685.61
US$854.99
+24.7%
5.5%US$950.00US$734.00n/a38
Apr ’25US$768.37
US$840.76
+9.4%
7.1%US$1,000.00US$660.00n/a37
Mar ’25US$773.63
US$832.11
+7.6%
7.2%US$910.00US$660.00n/a37
Feb ’25US$771.00
US$826.18
+7.2%
8.1%US$910.00US$640.00n/a37
Jan ’25US$706.49
US$692.14
-2.0%
9.4%US$820.00US$545.00n/a35
Dec ’24US$690.79
US$654.60
-5.2%
6.1%US$765.00US$545.00US$1,049.4435
Nov ’24US$593.48
US$646.92
+9.0%
5.1%US$706.00US$545.00US$943.4136
Oct ’24US$558.96
US$645.77
+15.5%
5.1%US$734.00US$575.00US$867.1835
Sep ’24US$590.88
US$644.06
+9.0%
5.0%US$734.00US$575.00US$855.0034
Aug ’24US$590.39
US$642.59
+8.8%
5.1%US$734.00US$575.00US$811.3834
Jul ’24US$561.97
US$551.74
-1.8%
10.3%US$665.00US$410.00US$788.9634
Jun ’24US$542.96
US$545.73
+0.5%
9.7%US$665.00US$410.00US$656.9334
May ’24US$450.41
US$540.59
+20.0%
9.0%US$650.00US$410.00US$685.6135
Apr ’24US$464.72
US$523.48
+12.6%
10.6%US$640.00US$370.00US$768.3735
Mar ’24US$428.94
US$523.48
+22.0%
10.6%US$640.00US$370.00US$773.6335
Feb ’24US$473.81
US$522.05
+10.2%
11.5%US$640.00US$320.00US$771.0035
Jan ’24US$388.27
US$527.54
+35.9%
12.8%US$641.00US$310.00US$706.4935
Dec ’23US$425.60
US$526.50
+23.7%
12.4%US$641.00US$310.00US$690.7934

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

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Company Analysis and Financial Data Status

DataLast Updated (UTC time)
Company Analysis2024/12/20 12:23
End of Day Share Price 2024/12/20 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