(NOW) ServiceNow - Ratings and Ratios
Workflow Platform, ITSM, ITOM, CSM, HRSD
NOW EPS (Earnings per Share)
NOW Revenue
| Risk via 10d forecast | |
|---|---|
| Volatility | 32.6% |
| Value at Risk 5%th | 51.7% |
| Reward | |
|---|---|
| Sharpe Ratio | -0.38 |
| Alpha Jensen | -29.47 |
| Character | |
|---|---|
| Hurst Exponent | 0.537 |
| Beta | 0.961 |
| Drawdowns 3y | |
|---|---|
| Max DD | 38.34% |
| Mean DD | 9.13% |
Description: NOW ServiceNow September 24, 2025
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 | 179,399m |
| Sub-Industry | Systems Software |
| IPO / Inception | 2012-06-29 |
| Return 12m vs S&P 500 | -28.9% |
| Analyst Rating | 4.49 of 5 |
NOW Dividends
Currently no dividends paidNOW Growth Ratios
| CAGR | 28.28% |
| CAGR/Max DD Calmar Ratio | 0.74 |
| CAGR/Mean DD Pain Ratio | 3.10 |
| Current Volume | 1520.7k |
| Average Volume | 1260.2k |
Piotroski VR‑10 (Strict, 0-10) 6.0
| Net Income (1.73b TTM) > 0 and > 6% of Revenue (6% = 760.0m TTM) |
| FCFTA 0.18 (>2.0%) and ΔFCFTA 0.01pp (YES ≥ +1.0pp, WARN ≥ +0.5pp) |
| NWC/Revenue 3.92% (prev 8.70%; Δ -4.77pp) (YES ≤20% & Δ≤-1pp; WARN ≤25% & Δ≤0 oder ≤40% & Δ≤-3pp) |
| CFO/TA 0.22 (>3.0%) and CFO 4.84b > Net Income 1.73b (YES >=105%, WARN >=100%) |
| Net Debt (-323.0m) to EBITDA (2.85b) ratio: -0.11 <= 3.0 (WARN <= 3.5) |
| Current Ratio 1.06 (target 1.5–3.0; WARN 1.2–<1.5 or >3.0–5.0; CFO/TA gate active) |
| Outstanding Shares last Quarter (210.0m) change vs 12m ago 0.69% (target <= -2.0% for YES) |
| Gross Margin 78.05% (prev 79.24%; Δ -1.19pp) >=18% & Δ>=+0.5pp (WARN >=15% & Δ>=0) |
| Asset Turnover 62.98% (prev 56.76%; Δ 6.22pp) >=50% & Δ>=+2pp (WARN >=35% & Δ>=0) |
| Interest Coverage Ratio 129.4 (EBITDA TTM 2.85b / Interest Expense TTM 17.0m) >= 6 (WARN >= 3) |
Altman Z'' 2.09
| (A) 0.02 = (Total Current Assets 8.36b - Total Current Liabilities 7.87b) / Total Assets 21.79b |
| (B) 0.22 = Retained Earnings (Balance) 4.84b / Total Assets 21.79b |
| (C) 0.11 = EBIT TTM 2.20b / Avg Total Assets 20.11b |
| (D) 0.46 = Book Value of Equity 4.82b / Total Liabilities 10.49b |
| Total Rating: 2.09 = (6.56 * A) + (3.26 * B) + (6.72 * C) + (1.05 * D) |
ValueRay F-Score (Strict, 0-100) 83.50
| 1. Piotroski 6.0pt = 1.0 |
| 2. FCF Yield 2.24% = 1.12 |
| 3. FCF Margin 31.25% = 7.50 |
| 4. Debt/Equity 0.21 = 2.48 |
| 5. Debt/Ebitda -0.11 = 2.50 |
| 6. ROIC - WACC (= 4.15)% = 5.18 |
| 7. RoE 16.49% = 1.37 |
| 8. Rev. Trend 99.75% = 7.48 |
| 9. EPS Trend 97.26% = 4.86 |
What is the price of NOW shares?
Over the past week, the price has changed by -1.77%, over one month by -6.46%, over three months by +1.24% and over the past year by -17.58%.
Is ServiceNow a good stock to buy?
Based on momentum, paid dividends and discounted-cash-flow analyses, the fair value of NOW is around 877.00 USD . This means that NOW is currently overvalued and has a potential downside of 1.5%.
Is NOW a buy, sell or hold?
- 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 | 1154.5 | 33.6% |
| Analysts Target Price | 1154.5 | 33.6% |
| ValueRay Target Price | 986.1 | 14.1% |
NOW Fundamental Data Overview November 09, 2025
P/E Trailing = 104.2164
P/E Forward = 45.2489
P/S = 14.1627
P/B = 17.2762
P/EG = 1.7172
Beta = 0.961
Revenue TTM = 12.67b USD
EBIT TTM = 2.20b USD
EBITDA TTM = 2.85b USD
Long Term Debt = 1.49b USD (from longTermDebt, last fiscal year)
Short Term Debt = 107.0m USD (from shortTermDebt, last quarter)
Debt = 2.40b USD (from shortLongTermDebtTotal, last quarter)
Net Debt = -323.0m USD (from netDebt column, last quarter)
Enterprise Value = 176.39b USD (179.40b + Debt 2.40b - CCE 5.41b)
Interest Coverage Ratio = 129.4 (Ebit TTM 2.20b / Interest Expense TTM 17.0m)
FCF Yield = 2.24% (FCF TTM 3.96b / Enterprise Value 176.39b)
FCF Margin = 31.25% (FCF TTM 3.96b / Revenue TTM 12.67b)
Net Margin = 13.67% (Net Income TTM 1.73b / Revenue TTM 12.67b)
Gross Margin = 78.05% ((Revenue TTM 12.67b - Cost of Revenue TTM 2.78b) / Revenue TTM)
Gross Margin QoQ = 77.28% (prev 77.48%)
Tobins Q-Ratio = 8.10 (Enterprise Value 176.39b / Total Assets 21.79b)
Interest Expense / Debt = 0.25% (Interest Expense 6.00m / Debt 2.40b)
Taxrate = 27.67% (192.0m / 694.0m)
NOPAT = 1.59b (EBIT 2.20b * (1 - 27.67%))
Current Ratio = 1.06 (Total Current Assets 8.36b / Total Current Liabilities 7.87b)
Debt / Equity = 0.21 (Debt 2.40b / totalStockholderEquity, last quarter 11.30b)
Debt / EBITDA = -0.11 (Net Debt -323.0m / EBITDA 2.85b)
Debt / FCF = -0.08 (Net Debt -323.0m / FCF TTM 3.96b)
Total Stockholder Equity = 10.50b (last 4 quarters mean from totalStockholderEquity)
RoA = 7.94% (Net Income 1.73b / Total Assets 21.79b)
RoE = 16.49% (Net Income TTM 1.73b / Total Stockholder Equity 10.50b)
RoCE = 18.36% (EBIT 2.20b / Capital Employed (Equity 10.50b + L.T.Debt 1.49b))
RoIC = 13.58% (NOPAT 1.59b / Invested Capital 11.72b)
WACC = 9.44% (E(179.40b)/V(181.80b) * Re(9.56%) + D(2.40b)/V(181.80b) * Rd(0.25%) * (1-Tc(0.28)))
Discount Rate = 9.56% (= CAPM, Blume Beta Adj.)
Shares Correlation 3-Years: 100.0 | Cagr: 0.72%
[DCF Debug] Terminal Value 76.65% ; FCFE base≈3.71b ; Y1≈4.57b ; Y5≈7.78b
Fair Price DCF = 485.0 (DCF Value 100.96b / Shares Outstanding 208.2m; 5y FCF grow 24.81% → 3.0% )
EPS Correlation: 97.26 | EPS CAGR: 31.29% | SUE: 3.81 | # QB: 3
Revenue Correlation: 99.75 | Revenue CAGR: 22.73% | SUE: 1.64 | # QB: 2
Additional Sources for NOW Stock
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Fund Manager Positions: Dataroma | Stockcircle