Servicenow Stock Valuation

NOW
 Stock
  

USD 504.07  2.44  0.48%   

What is the acquisition price tag of Servicenow? Calculating the true value of any business is not as easy as it may seem. While the market cap of a public entity, such as Servicenow, is its stock price multiplied by the total number of shares outstanding, calculating Servicenow's enterprise value requires a different approach. It uses Servicenow's balance sheet items such as long-term debt, the book value of the preferred stock, minority interest, and other important financials.
Free Cash Flow is likely to climb to about 1.7 B in 2022. Enterprise Value is likely to climb to about 134.3 B in 2022.
Servicenow has a current Real Value of $603.87 per share. The regular price of the company is $504.07. At this time, the company appears to be undervalued. Our model measures the value of Servicenow from inspecting the company fundamentals such as Return On Equity of 4.93 %, shares outstanding of 199 M, and Operating Margin of 3.30 % as well as reviewing its technical indicators and Probability Of Bankruptcy. In general, we recommend buying undervalued stocks and disposing overvalued stocks since, at some point, asset prices and their ongoing real values will draw towards each other.
  
Servicenow Valuation Module provides a unique way to ballpark how much the company is worth today. It is done using both, our quantitative analysis of the company fundamentals as well as its intrinsic market price estimation to project the real value. We also take into consideration other essential factors such as Servicenow's management style, its c-level domain expertise and tenure, its overall leadership history as well as current capital structure, and future earnings potential.

Servicenow Most Recent Valuation Data

Price Book
24.86
Enterprise Value
102.6 B
Enterprise Value Ebitda
147.18
Price Sales
15.29
Forward PE
71.43
Trailing PE
567.88
Enterprise Value Revenue
15.54
Undervalued
Today 504.07
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.
Our valuation method for Servicenow is useful when determining the fair value of the Servicenow stock, which is usually 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.
453.66
Downside
603.87
Real Value
607.53
Upside
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:
Earnings
Estimates (11)
LowProjected EPSHigh
1.341.391.56
Details
Hype
Prediction
LowEstimated ValueHigh
490.08493.74554.48
Details
Naive
Forecast
LowNext ValueHigh
535.73539.39543.05
Details
25 Analysts
Consensus
LowTarget PriceHigh
520.00726.17820.00
Details
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. When choosing an evaluation method for Servicenow, ensure it is appropriate for the firm given its current financial situation and market classification. If more than one evaluation category is relevant, we suggest using both methods to arrive at a better estimate.

Servicenow Investments

3.58 Billion

Servicenow Valuation Drivers Correlation

Many accounts on the financial statements of Servicenow are highly interrelated and sometimes correlated. Consequently, when conducting Servicenow's valuation analysis, one should examine all of the accounts reported to obtain a complete picture of its financial situation. We provide a unique feature to present a conventional correlation table purposely composed against different valuation-related drivers of Servicenow
Click cells to compare fundamentals

Servicenow Valuation Trend

Knowing Servicenow's actual value is paramount for traders to make sound investment determinations. Servicenow's real value is not only important for the investor to make better decisions but also for a more accurate overall view of Servicenow's financial worth over time since having this information enables investors and analysts to forecast the earnings more efficiently. Using both Servicenow's enterprise value as well as its market capitalization is the best way to gauging the value of the company and is usually enough for investors to make market timing descisions.

Servicenow Market Cap

Servicenow is considered to be number one stock in market capitalization category among related companies. Market capitalization of Software—Application industry is now estimated at about 1.84 Trillion. Servicenow holds roughly 100.8 Billion in market capitalization claiming about 5% of equities listed under Software—Application industry.
Capitalization  Revenue  Valuation  Total debt  Workforce

Servicenow Valuation Ratios as Compared to Competition

Comparative valuation techniques use various fundamental indicators to help in determining Servicenow's current stock value. Our valuation model uses many indicators to compare Servicenow value to that of its competitors to determine the firm's financial worth. You can analyze the relationship between different fundamental ratios across Servicenow competition to find correlations between indicators driving Servicenow's intrinsic value. More Info.
Servicenow is considered to be number one stock in beta category among related companies. It is considered to be number one stock in price to sales category among related companies fabricating about  14.83  of Price to Sales per Beta. Price to Sales Ratio is likely to drop to 22.34 in 2022. Comparative valuation analysis is a catch-all model that can be used if you cannot value Servicenow by discounting back its dividends or cash flows. This model doesn't attempt to find an intrinsic value for Servicenow's Stock . Still, instead, it compares the stock's price multiples to a benchmark or nearest competition to determine if the stock is relatively undervalued or overvalued. The reason why the comparable model can be used in almost all circumstances is due to the vast number of multiples that can be utilized, such as the price-to-earnings (P/E), price-to-book (P/B), price-to-sales (P/S), price-to-cash flow (P/CF), and many others. The P/E ratio is the most commonly used of these ratios because it focuses on the Servicenow's earnings, one of the primary drivers of an investment's value.
Please note that valuation analysis is one of the essential comprehensive assessments in business. It evaluates Servicenow's worth, which you can determine by considering its current assets, liabilities and future cash flows. The investors' valuation analysis is an important metric that will give you a perspective on different companies. It helps you know the worth of the potential investment in Servicenow and how it compares across the competition.

About Servicenow Valuation

The stock valuation mechanism determines the current worth of Servicenow on a weekly basis. We use both absolute as well as relative valuation methodologies to arrive at the intrinsic value of Servicenow. In general, an absolute valuation paradigm, as applied to this company, attempts to find the value of Servicenow based exclusively on its fundamental and basic technical indicators. By analyzing Servicenow's financials, quarterly and monthly indicators, and its related drivers such as dividends, operating cash flow, and various types of growth rates, we attempt to find the most accurate representation of Servicenow's intrinsic value. In some cases, mostly for established, large-cap companies, we also incorporate more traditional valuation methods such as dividend discount, discounted cash flow, or asset-based models. As compared to an absolute model, our relative valuation model uses a comparative analysis of Servicenow. We calculate exposure to Servicenow's market risk, different technical and fundamental indicators, relevant financial multiples and ratios, and then comparing them to Servicenow's related companies.
Fiscal Year End
December
Industry
Software-Application
Concentration
Systems Software
Full Time Employees
16.9 K
Service Category
Software
Employer Id Number
20-2056195
Last ReportedProjected for 2022
Gross Profit4.1 B4.4 B
Profit Margin 3.90  4.21 
ServiceNow, Inc. provides enterprise cloud computing solutions that defines, structures, consolidates, manages, and automates services for enterprises worldwide. The company was founded in 2004 and is headquartered in Santa Clara, California. Servicenow operates under SoftwareApplication classification in the United States and is traded on New York Stock Exchange. It employs 16881 people.

Servicenow Valuation Growth Rates

Growth stocks usually refer to those companies expected to grow sales and earnings faster than the market average. Growth stocks typically don't pay dividends, often look expensive, and usually trading at a high P/E ratio. Nevertheless, such valuations could be relatively cheap if the company continues to grow, which will drive the share price up. However, since most investors are paying a high price for a growth stock, based on expectations, if those expectations are not fully realized, growth stocks can see dramatic declines. Note, 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.
Quick Ratio0.99
Earnings Quarterly Growth-66.10%
Revenue Growth24.30%
Enterprise Value To Ebitda130.91
Earnings Growth-65.70%
Enterprise Value To Revenue13.39

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. Servicenow's valuation analysis is also a process of estimating the intrinsic value of all assets and outstanding equities. There are different methodologies and models we use to develop the final Servicenow's valuation. The techniques such as discounted cash flow and fundamental indicators such as book value per share or market capitalization are well known and widely used across most financial advisers and money managers.
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.
Additionally, see Stocks Correlation. Note that the Servicenow information on this page should be used as a complementary analysis to other Servicenow's statistical models used to find the right mix of equity instruments to add to your existing portfolios or create a brand new portfolio. You can also try Price Transformation module to use Price Transformation models to analyze depth of different equity instruments across global markets.

Complementary Tools for Servicenow Stock analysis

When running Servicenow 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 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.
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Is Servicenow's industry expected to grow? Or is there an opportunity to expand the business' product line in the future? Factors like these will boost the valuation of Servicenow. If investors know Servicenow will grow in the future, the company's valuation will be higher. The financial industry is built on trying to define current growth potential and future valuation accurately. All the valuation information about Servicenow listed above have to be considered, but the key to understanding future value is determining which factors weigh more heavily than others.
Quarterly Earnings Growth YOY
-0.66
Market Capitalization
100.9 B
Quarterly Revenue Growth YOY
0.24
Return On Assets
0.0134
Return On Equity
0.0493
The market value of Servicenow is measured differently than its book value, which is the value of Servicenow that is recorded on the company's balance sheet. Investors also form their own opinion of Servicenow's value that differs from its market value or its book value, called intrinsic value, which is Servicenow's true underlying value. Investors use various methods to calculate intrinsic value and buy a stock when its market value falls below its intrinsic value. Because Servicenow's market value can be influenced by many factors that don't directly affect Servicenow's underlying business (such as a pandemic or basic market pessimism), market value can vary widely from intrinsic value.
Please note, there is a significant difference between Servicenow's value and its price as these two are different measures arrived at by different means. Investors typically determine Servicenow value by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, Servicenow's price is the amount at which it trades on the open market and represents the number that a seller and buyer find agreeable to each party.