ServiceNow, Inc. (NOW) Valuation

Valuation

Model-based estimates, not advice. The DCF is the discounted-cash-flow value per share; compare it with the price, not as a target.

DCF fair value

-2.8%

$105.85

vs $108.87 price

Levered DCF

$176.14

After debt service

Piotroski score

5 / 9

Average

Altman Z-score

4.36

Safe zone

Rating

B-

Overall 3 / 5

Ratios by fiscal year

Margins and yields are shares of revenue, equity or price; multiples are ×.

Metric	FY2025	FY2024	FY2023	FY2022	FY2021	FY2020	FY2019	FY2018
P/E	90.64×	153.64×	83.12×	242.66×	564.43×	917.42×	84.02×	-1,187×
P/B	12.25×	22.71×	18.91×	15.54×	34.8×	37.51×	24.74×	28.5×
P/S	11.96×	19.87×	16.08×	10.79×	21.81×	23.52×	15.21×	12.14×
EV / EBITDA	52.53×	93.84×	90.72×	91.93×	172.32×	205.68×	150.35×	194.48×
Gross margin	77.5%	79.2%	78.6%	78.3%	77.1%	78.2%	77.0%	76.1%
Operating margin	13.7%	12.4%	8.5%	4.9%	4.4%	4.4%	1.2%	-1.6%
Net margin	13.2%	13.0%	19.3%	4.5%	3.9%	2.6%	18.1%	-1.0%
Current ratio	1×	1.1×	1.06×	1.11×	1.05×	1.21×	1.03×	1.17×
Debt / equity	0.19×	0.24×	0.3×	0.44×	0.6×	0.75×	0.53×	0.6×
Interest coverage	79.3×	59.3×	31.75×	13.15×	9.18×	6.03×	1.26×	-0.8×
Dividend yield	0.0%	0.0%	0.0%	0.0%	0.0%	0.0%	0.0%	0.0%
Payout ratio	0.0%	0.0%	0.0%	0.0%	0.0%	0.0%	0.0%	0.0%

Key metrics by fiscal year

Metric	FY2025	FY2024	FY2023	FY2022	FY2021	FY2020	FY2019	FY2018
Return on equity	13.5%	14.8%	22.7%	6.5%	6.2%	4.2%	29.5%	-2.4%
Return on invested capital	9.0%	9.2%	7.5%	3.9%	3.9%	3.1%	1.3%	-1.6%
Return on assets	6.7%	7.0%	10.0%	2.4%	2.1%	1.4%	10.4%	-0.7%
Free cash flow yield	2.9%	1.6%	1.9%	2.8%	1.4%	1.3%	1.7%	1.8%
Earnings yield	1.1%	0.7%	1.2%	0.4%	0.2%	0.1%	1.2%	-0.1%
Enterprise value	$157.5B	$218.2B	$144.6B	$79B	$129.1B	$106.7B	$53B	$31.8B
Net debt / EBITDA	-0.44×	-0.01×	0.24×	0.89×	0.65×	0.88×	1.01×	0.58×
Cash conversion cycle (days)	47	64	59	23	62	69	64	62