Overview Dividends

(NOW) ServiceNow - Ratings and Ratios

Exchange: NYSE • Country: United States • Currency: USD • Type: Common Stock • ISIN: US81762P1021

Workflow Platform, ITSM, ITOM, CSM, HRSD

NOW EPS (Earnings per Share)

EPS Growth (3Y CAGR): 30.67%
EPS Trend (3Y Correlation): 58.1%

NOW Revenue

Revenue Growth (3Y CAGR): 22.72%
Revenue Trend (3Y Correlation): 99.7%

Description: NOW ServiceNow

ServiceNow, Inc. (NYSE: NOW) delivers a cloud-based “Now” platform that enables digital workflow automation across a broad set of enterprise functions, including IT service management, security operations, HR, legal, and field service, as well as low-code/no-code development tools, AI-driven analytics, and robotic process automation.

The platform is sold globally-covering North America, EMEA, APAC, and other regions-and is positioned for a diverse client base that spans government, financial services, healthcare, manufacturing, retail, technology, telecom, and other verticals, typically accessed through service-provider and reseller channels.

According to the company’s FY 2024 earnings release, ServiceNow generated $8.1 billion in revenue, up roughly 18 % year-over-year, with a net dollar retention rate of 124 % and annual recurring revenue (ARR) surpassing $13 billion. These metrics suggest strong upsell potential and a growing subscription base, but they are contingent on continued enterprise spending on digital transformation-a macro variable that can be volatile in a tightening credit environment.

Key sector drivers include the accelerating adoption of AI and automation in enterprise IT stacks, the expanding low-code/no-code market (projected to exceed $45 billion by 2027), and the broader shift toward cloud-first strategies that benefit platform-as-a-service providers. Conversely, ServiceNow’s valuation is sensitive to competitive pressure from peers such as Salesforce, Microsoft, and emerging niche workflow vendors, which could compress margins if price competition intensifies.

For a deeper quantitative comparison of ServiceNow’s valuation metrics against peers, you may find ValueRay’s platform useful.

NOW Stock Overview

Market Cap in USD	190,492m
Sub-Industry	Systems Software
IPO / Inception	2012-06-29

NOW Stock Ratings

Growth Rating	40.1%
Fundamental	83.2%
Dividend Rating	-
Return 12m vs S&P 500	-16.2%
Analyst Rating	4.49 of 5

NOW Dividends

Currently no dividends paid

NOW Growth Ratios

Growth Correlation 3m	-11.6%
Growth Correlation 12m	-41.1%
Growth Correlation 5y	69.6%
CAGR 5y	36.85%
CAGR/Max DD 3y (Calmar Ratio)	0.96
CAGR/Mean DD 3y (Pain Ratio)	4.25
Sharpe Ratio 12m	-0.88
Alpha	-19.03
Beta	0.923
Volatility	31.68%
Current Volume	763.4k
Average Volume 20d	1208k
Stop Loss	871.7 (-3.5%)
Signal	0.04

Piotroski VR‑10 (Strict, 0-10) 6.5

Net Income (1.66b TTM) > 0 and > 6% of Revenue (6% = 723.4m TTM)

FCFTA 0.17 (>2.0%) and ΔFCFTA 0.69pp (YES ≥ +1.0pp, WARN ≥ +0.5pp)

NWC/Revenue 1.90% (prev 8.53%; Δ -6.63pp) (YES ≤20% & Δ≤-1pp; WARN ≤25% & Δ≤0 oder ≤40% & Δ≤-3pp)

CFO/TA 0.21 (>3.0%) and CFO 4.70b > Net Income 1.66b (YES >=105%, WARN >=100%)

Net Debt (-724.0m) to EBITDA (2.61b) ratio: -0.28 <= 3.0 (WARN <= 3.5)

Current Ratio 1.03 (target 1.5–3.0; WARN 1.2–<1.5 or >3.0–5.0; CFO/TA gate active)

Outstanding Shares last Quarter (209.3m) change vs 12m ago 0.73% (target <= -2.0% for YES)

Gross Margin 78.52% (prev 79.07%; Δ -0.55pp) >=18% & Δ>=+0.5pp (WARN >=15% & Δ>=0)

Asset Turnover 59.90% (prev 54.68%; Δ 5.22pp) >=50% & Δ>=+2pp (WARN >=35% & Δ>=0)

Interest Coverage Ratio 88.17 (EBITDA TTM 2.61b / Interest Expense TTM 23.0m) >= 6 (WARN >= 3)

Altman Z'' 1.79

(A) 0.01 = (Total Current Assets 8.72b - Total Current Liabilities 8.49b) / Total Assets 22.05b

(B) 0.20 = Retained Earnings (Balance) 4.34b / Total Assets 22.05b

(D) 0.39 = Book Value of Equity 4.29b / Total Liabilities 11.12b

Total Rating: 1.79 = (6.56 * A) + (3.26 * B) + (6.72 * C) + (1.05 * D)

ValueRay F-Score (Strict, 0-100) 83.17

1. Piotroski 6.50pt = 1.50

2. FCF Yield 2.03% = 1.01

3. FCF Margin 31.92% = 7.50

4. Debt/Equity 0.22 = 2.48

5. Debt/Ebitda -0.28 = 2.50

6. ROIC - WACC (= 5.13)% = 6.42

7. RoE 16.62% = 1.39

8. Rev. Trend 99.71% = 7.48

9. EPS Trend 58.12% = 2.91

What is the price of NOW shares?

As of October 16, 2025, the stock is trading at USD 903.05 with a total of 763,420 shares traded.
Over the past week, the price has changed by -1.23%, over one month by -4.68%, over three months by -5.63% and over the past year by -2.68%.

Is ServiceNow a good stock to buy?

Yes, based on ValueRay´s Fundamental Analyses, ServiceNow (NYSE:NOW) is currently (October 2025) a good stock to buy. It has a ValueRay Fundamental Rating of 83.17 and therefor a positive outlook according to the companies health.
Based on momentum, paid dividends and discounted-cash-flow analyses, the fair value of NOW is around 966.58 USD . This means that NOW is currently overvalued and has a potential downside of 7.04%.

Is NOW a buy, sell or hold?

ServiceNow has received a consensus analysts rating of 4.49. Therefore, it is recommended to buy NOW.

Strong Buy: 31
Buy: 10
Hold: 5
Sell: 0
Strong Sell: 1

What are the forecasts/targets for the NOW price?

Issuer	Target	Up/Down from current
Wallstreet Target Price	1147.8	27.1%
Analysts Target Price	1147.8	27.1%
ValueRay Target Price	1085.5	20.2%

Last update: 2025-10-11 05:03

NOW Fundamental Data Overview

Market Cap USD = 190.49b (190.49b USD * 1.0 USD.USD)
P/E Trailing = 114.8874
P/E Forward = 45.2489
P/S = 15.7993
P/B = 17.2762
P/EG = 1.7172
Beta = 0.923
Revenue TTM = 12.06b USD
EBIT TTM = 2.03b USD
EBITDA TTM = 2.61b USD
Long Term Debt = 1.49b USD (from longTermDebt, last quarter)
Short Term Debt = 104.0m USD (from shortTermDebt, last quarter)
Debt = 2.41b USD (from shortLongTermDebtTotal, last quarter)
Net Debt = -724.0m USD (from netDebt column, last quarter)
Enterprise Value = 189.78b USD (190.49b + Debt 2.41b - CCE 3.12b)
Interest Coverage Ratio = 88.17 (Ebit TTM 2.03b / Interest Expense TTM 23.0m)
FCF Yield = 2.03% (FCF TTM 3.85b / Enterprise Value 189.78b)
FCF Margin = 31.92% (FCF TTM 3.85b / Revenue TTM 12.06b)
Net Margin = 13.78% (Net Income TTM 1.66b / Revenue TTM 12.06b)
Gross Margin = 78.52% ((Revenue TTM 12.06b - Cost of Revenue TTM 2.59b) / Revenue TTM)
Gross Margin QoQ = 77.48% (prev 78.92%)
Tobins Q-Ratio = 8.61 (Enterprise Value 189.78b / Total Assets 22.05b)
Interest Expense / Debt = 0.25% (Interest Expense 6.00m / Debt 2.41b)
Taxrate = 18.26% (86.0m / 471.0m)
NOPAT = 1.66b (EBIT 2.03b * (1 - 18.26%))
Current Ratio = 1.03 (Total Current Assets 8.72b / Total Current Liabilities 8.49b)
Debt / Equity = 0.22 (Debt 2.41b / totalStockholderEquity, last quarter 10.93b)
Debt / EBITDA = -0.28 (Net Debt -724.0m / EBITDA 2.61b)
Debt / FCF = -0.19 (Net Debt -724.0m / FCF TTM 3.85b)
Total Stockholder Equity = 9.99b (last 4 quarters mean from totalStockholderEquity)
RoA = 7.53% (Net Income 1.66b / Total Assets 22.05b)
RoE = 16.62% (Net Income TTM 1.66b / Total Stockholder Equity 9.99b)
RoCE = 17.66% (EBIT 2.03b / Capital Employed (Equity 9.99b + L.T.Debt 1.49b))
RoIC = 14.44% (NOPAT 1.66b / Invested Capital 11.48b)
WACC = 9.30% (E(190.49b)/V(192.90b) * Re(9.42%) + D(2.41b)/V(192.90b) * Rd(0.25%) * (1-Tc(0.18)))
Discount Rate = 9.42% (= CAPM, Blume Beta Adj.)
Shares Correlation 3-Years: 100.0 | Cagr: 0.56%
[DCF Debug] Terminal Value 77.08% ; FCFE base≈3.53b ; Y1≈4.35b ; Y5≈7.40b
Fair Price DCF = 473.0 (DCF Value 98.16b / Shares Outstanding 207.5m; 5y FCF grow 24.81% → 3.0% )
EPS Correlation: 58.12 | EPS CAGR: 30.67% | SUE: 4.0 | # QB: 2
Revenue Correlation: 99.71 | Revenue CAGR: 22.72% | SUE: 4.0 | # QB: 1

Additional Sources for NOW Stock

News: Wall Street Journal | Benzinga | Yahoo Finance
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Fund Manager Positions: Dataroma | Stockcircle