ServiceNow Valuation
| NOW Stock | USD 922.29 5.29 0.57% |
At this time, the company appears to be overvalued. ServiceNow has a current Real Value of $664.05 per share. The regular price of the company is $922.29. Our model measures the value of ServiceNow from inspecting the company fundamentals such as Operating Margin of 0.14 %, shares outstanding of 206.49 M, and Return On Equity of 0.17 as well as reviewing its technical indicators and probability of bankruptcy. Key fundamental drivers impacting ServiceNow's valuation include:
Price Book 19.9327 | Enterprise Value | Enterprise Value Ebitda 80.8814 | Price Sales 17.338 | Forward PE 56.1798 |
Overvalued
Today
Please note that ServiceNow's price fluctuation is very steady at this time. Calculation of the real value of ServiceNow is based on 3 months time horizon. Increasing ServiceNow's time horizon generally increases the accuracy of value calculation and significantly improves the predictive power of the methodology used.
The fair value of the ServiceNow stock is determined by what a typical buyer is willing to pay for full or partial control of ServiceNow. Since ServiceNow is currently traded on the exchange, buyers and sellers on that exchange determine the market value of ServiceNow Stock. However, ServiceNow's intrinsic value may or may not be the same as its current market price, in which case there is an opportunity to profit from the mispricing, assuming the market price will eventually merge with its intrinsic value. | Historical | Market 922.29 | Real 664.05 | Target 1095.19 | Hype 922.29 | Naive 927.67 |
The intrinsic value of ServiceNow's stock can be calculated using various methods such as discounted cash flow analysis, price-to-earnings ratio, or price-to-book ratio. That value may differ from its current market price, which is determined by supply and demand factors such as investor sentiment, market trends, news, and other external factors that may influence ServiceNow's stock price. It is important to note that the real value of any stock may change over time based on changes in the company's performance.
Estimating the potential upside or downside of ServiceNow helps investors to forecast how ServiceNow stock's addition to their portfolios will impact the overall performance. We also use other valuation drivers to help us estimate the true value of ServiceNow more accurately as focusing exclusively on ServiceNow's fundamentals will not take into account other important factors: Traditionally, analysts and sophisticated investors use multiple methods for valuing a cash-flow-generating entity or its stock. For example, some money managers use ServiceNow's intrinsic value based on its ongoing forecasts of ServiceNow's financial statements. In contrast, other private, professional wealth advisors use a multiplier approach by looking to relative value analysis against ServiceNow's closest peers.
ServiceNow Cash |
|
ServiceNow Valuation Trend
Analysing the historical paterns of ServiceNow's enterprise value and its market capitalization is a good way to estimate and gauge the value of ServiceNow over time and is usually enough for investors to make rational market timing decisions.
ServiceNow Revenue by Product
ServiceNow Total Value Analysis
ServiceNow is now estimated to have company total value of 188.05 B with market capitalization of 190.44 B, debt of 789 M, and cash on hands of 1.47 B. Please note that company total value may be misleading and is a subject to accounting gimmicks. We encourage investors to carefully check all of the ServiceNow fundamentals before making security assessment based on enterprise value of the company| Takeover Price | Market Cap | Debt Obligations | Cash |
188.05 B | 190.44 B | 789 M | 1.47 B |
ServiceNow Investor Information
About 92.0% of the company shares are owned by institutional investors. The company has Price/Earnings To Growth (PEG) ratio of 2.09. ServiceNow recorded earning per share (EPS) of 6.82. The entity had not issued any dividends in recent years. Based on the key measurements obtained from ServiceNow's financial statements, ServiceNow is performing exceptionally good at the present time. It has a great chance to report excellent financial results in March.| Current Value | Last Year | Change From Last Year | 10 Year Trend | ||||||
|---|---|---|---|---|---|---|---|---|---|
| Total Cash From Operating Activities | 4.5 B | 4.3 B |
|
|
ServiceNow Asset Utilization
The asset utilization indicator refers to the revenue earned for every dollar of assets a company currently reports. ServiceNow has an asset utilization ratio of 53.89 percent. This indicates that the Company is making $0.54 for each dollar of assets. An increasing asset utilization means that ServiceNow is more efficient with each dollar of assets it utilizes for everyday operations.ServiceNow Ownership Allocation
ServiceNow shows a total of 206.49 Million outstanding shares. The majority of ServiceNow outstanding shares are owned by institutional holders. These institutional investors are usually referred to as non-private investors looking to take positions in ServiceNow to benefit from reduced commissions. Consequently, institutions are subject to a different set of regulations than regular investors in ServiceNow. Please pay attention to any change in the institutional holdings of ServiceNow as this could imply that something significant has changed or is about to change at the company. Please note that on December 30, 2024, Representative Marjorie Taylor Greene of US Congress acquired under $15k worth of ServiceNow's common stock.ServiceNow Profitability Analysis
The company reported the last year's revenue of 10.98 B. Total Income to common stockholders was 1.43 B with profit before taxes, overhead, and interest of 8.7 B.About ServiceNow Valuation
Our relative valuation model uses a comparative analysis of ServiceNow. We calculate exposure to ServiceNow's market risk, different technical and fundamental indicators, and relevant financial multiples and ratios and then compare them to those of ServiceNow's related companies.| Last Reported | Projected for Next Year | ||
| Gross Profit | 8.7 B | 9.1 B | |
| Pretax Profit Margin | 0.16 | 0.17 | |
| Operating Profit Margin | 0.12 | 0.13 | |
| Net Profit Margin | 0.13 | 0.14 | |
| Gross Profit Margin | 0.79 | 0.55 |
ServiceNow Growth Indicators
Investing in growth stocks can be very risky. If the company such as ServiceNow does not do well, investors take a loss on the stock when it is time to sell. Also, because growth stocks typically do not pay dividends, the only opportunity an investor has to make money on their investment is when they eventually sell their shares.
| Common Stock Shares Outstanding | 208 M | |
| Quarterly Earnings Growth Y O Y | 0.296 | |
| Forward Price Earnings | 56.1798 |
ServiceNow Current Valuation Indicators
Valuation refers to the process of determining the present value of ServiceNow and all of its assets. It can be calculated using a number of techniques. As many analysts who try to value ServiceNow we look at many different elements of the entity such as ServiceNow's management, its prospective future earnings, the current market value of the company's assets, as well as its capital structure formation.
Valuations are an essential part of business, for companies themselves, but also for investors. For companies, such as ServiceNow, valuations can help measure their progress and success and can help them track their performance in the market compared to others. In addition, investors can use ServiceNow's valuations to help determine the worth of potential investments. They can do this by using data and information made public by a company. Regardless of who the valuation is for, it essentially describes ServiceNow's worth.Additional Tools for ServiceNow Stock Analysis
When running ServiceNow's price analysis, check to measure ServiceNow's market volatility, profitability, liquidity, solvency, efficiency, growth potential, financial leverage, and other vital indicators. We have many different tools that can be utilized to determine how healthy ServiceNow is operating at the current time. Most of ServiceNow's value examination focuses on studying past and present price action to predict the probability of ServiceNow's future price movements. You can analyze the entity against its peers and the financial market as a whole to determine factors that move ServiceNow's price. Additionally, you may evaluate how the addition of ServiceNow to your portfolios can decrease your overall portfolio volatility.