ServiceNow Valuation

Is NOW 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-Earnings vs Peers

  • Price-To-Earnings vs Industry

  • Price-To-Earnings 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 ($768.71) is trading below our estimate of fair value ($893.85)

Significantly Below Fair Value: NOW is trading below fair value, but not by a significant amount.


Key Valuation Metric

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

Other financial metrics that can be useful for relative valuation.

NOW key valuation metrics and ratios. From Price to Earnings, Price to Sales and Price to Book to Price to Earnings Growth Ratio, Enterprise Value and EBITDA.
Key Statistics
Enterprise Value/Revenue17x
Enterprise Value/EBITDA114.9x
PEG Ratio17.6x

Price to Earnings Ratio vs Peers

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

The above table shows the PE ratio for NOW vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyForward PEEstimated GrowthMarket Cap
Peer Average39.5x
PANW Palo Alto Networks
39.6x-15.0%US$90.1b
ORCL Oracle
31.3x14.9%US$332.9b
FTNT Fortinet
44.2x14.0%US$50.7b
VMW VMware
43.1x14.2%US$61.5b
NOW ServiceNow
91.2x5.2%US$157.9b

Price-To-Earnings vs Peers: NOW is expensive based on its Price-To-Earnings Ratio (91.2x) compared to the peer average (38.3x).


Price to Earnings Ratio vs Industry

How does NOW's PE Ratio compare vs other companies in the US Software Industry?

0 CompaniesPrice / EarningsEstimated GrowthMarket Cap
Industry Avg.n/a15.7%
n/an/an/a
No. of CompaniesPE048121620

Fetching data

0 CompaniesPrice / EarningsEstimated GrowthMarket Cap
Industry Avg.n/a15.7%
n/an/an/a
No more companies

Price-To-Earnings vs Industry: NOW is expensive based on its Price-To-Earnings Ratio (91.2x) compared to the US Software industry average (41.9x).


Price to Earnings Ratio vs Fair Ratio

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

NOW PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio91.2x
Fair PE Ratio45x

Price-To-Earnings vs Fair Ratio: NOW is expensive based on its Price-To-Earnings Ratio (91.2x) compared to the estimated Fair Price-To-Earnings Ratio (45x).


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$768.71
US$842.65
+9.6%
7.0%US$1,000.00US$660.00n/a37
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$545.00n/a35
Nov ’24US$593.48
US$646.92
+9.0%
5.1%US$706.00US$545.00n/a36
Oct ’24US$558.96
US$645.77
+15.5%
5.1%US$734.00US$575.00n/a35
Sep ’24US$590.88
US$644.06
+9.0%
5.0%US$734.00US$575.00n/a34
Aug ’24US$590.39
US$642.59
+8.8%
5.1%US$734.00US$575.00n/a34
Jul ’24US$561.97
US$551.74
-1.8%
10.3%US$665.00US$410.00n/a34
Jun ’24US$542.96
US$545.73
+0.5%
9.7%US$665.00US$410.00n/a34
May ’24US$450.41
US$540.59
+20.0%
9.0%US$650.00US$410.00n/a35
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
Nov ’23US$418.56
US$526.50
+25.8%
12.4%US$641.00US$310.00US$593.4834
Oct ’23US$377.61
US$557.69
+47.7%
16.2%US$850.00US$310.00US$558.9632
Sep ’23US$430.56
US$557.69
+29.5%
16.2%US$850.00US$310.00US$590.8832
Aug ’23US$453.77
US$566.65
+24.9%
17.1%US$850.00US$310.00US$590.3932
Jul ’23US$484.36
US$634.33
+31.0%
12.8%US$850.00US$390.00US$561.9732
Jun ’23US$475.13
US$634.33
+33.5%
12.8%US$850.00US$390.00US$542.9632
May ’23US$478.10
US$662.75
+38.6%
11.0%US$850.00US$390.00US$450.4132
Apr ’23US$548.69
US$687.06
+25.2%
10.5%US$850.00US$460.00US$464.7233

Analyst Forecast: Target price is less than 20% higher than the current share price.


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