ServiceNow Inc (NOW)
UndervaluedFundamental
64
Price
$134.01
Market Cap
$135.90B
Part 1 · What the company is worth
Overview
ServiceNow, Inc. provides cloud-based solution for digital workflows in the North America, Brazil, Europe, the Middle East and Africa, Asia Pacific, and internationally. The company provides asset management, integrated risk management, IT service management, Operational Technology management, Security Operations, strategic portfolio management, IT operations management products; customer service management product; field service management applications; and sales and order management services. It also offers human resources delivery; legal and contract operations; workplace service delivery products; app engine product; automation engine; platform privacy and security product; and source-to-pay operations. In addition, the company provides RaptorDB, a database built to manage workloads at scale; ServiceNow Impact that provides customers with software tools, guided plans, and AI-driven recommendations; customer support; and workflow data fabric. It serves government, financial services, healthcare and life science, manufacturing, Public Sector, retail, technology, and Telecom sectors through service providers and resale partners. The company has a strategic collaboration with Cohesity, Inc. to develop, operate, and safeguard autonomous AI agents and data with enterprise-grade reliability; and with ServiceNow to Advance Ai-Powered Solution for Mission-Critical Infrastructure Monitoring. The company was formerly known as Service-now.com and changed its name to ServiceNow, Inc. in May 2012. ServiceNow, Inc. has a strategic alliance with Accenture for integrated risk management and third-party risk management solutions, and with Tech Mahindra to validate and deliver production-ready, industry-specific enterprise AI and automation solutions at scale. ServiceNow, Inc. was founded in 2004 and is headquartered in Santa Clara, California.
No editorial profile for this company yet
Direct competitors
Who this company fights with for the same customers
Generated on September 19, 2026 with claude-haiku-4-5 — shared with all users
Named by ServiceNow in its own 10-K, Salesforce sells a rival cloud workflow platform whose Service Cloud and IT Service products chase the same enterprise service-desk and customer-service budgets.
Jira Service Management is the most common alternative bid against ServiceNow for IT service management, especially in companies whose development teams already run on Atlassian tools.
Named as a competitor in ServiceNow's 10-K, Microsoft pushes Power Platform, Dynamics 365 and Copilot-based agents as a workflow-automation alternative bundled into deals ServiceNow is bidding for.
Freshservice competes for the same IT service-desk contracts with a lighter, faster-to-deploy product, typically winning mid-market accounts that consider ServiceNow too heavy.
BMC Helix is a direct ITSM platform competitor sold to the same large-enterprise IT organizations, and it is where ServiceNow's founder came from; the company is privately held under KKR ownership.
Balance Sheet & Liquidity
Revenue
$14.73B
Trailing 12 months (through 6/30/2026)
Net Income
$1.67B
Trailing 12 months (through 6/30/2026)
Free Cash Flow
$4.58B
Total Equity
$12.96B
Total Liabilities
$13.07B
Current Ratio
0.70
Interest Coverage
-
Debt/EBITDA
4.12
Earnings Per Share
Revenue & Net Income
Free Cash Flow
Income Breakdown
Historical statement
Margins over time
Debt over time
How heavy the debt is
Growth grid
Growth — Revenue
Fair Value Estimation
Fair Value
$190.72
Current Price
$134.01
Margin of Safety
+29.7%
Fair Value Range
$123.97 - $257.47
Spread across the valuation methods used, not a statistically calibrated confidence interval.
Estimation Methods
Valuation Metrics
P/E Ratio
83.76
ROE
13.5%
P/B Ratio
11.07
P/FCF
30.25
Gross Margin
74.8%
ROIC
6.8%
Profitability Radar
Value Creation (Economic Moat)
ROIC
6.8%
WACC
9.1%
ROIC − WACC
-2.3 pp
ROIC is below the cost of capital — the company is destroying value for every dollar invested.
Fundamental Analysis Criteria
Passed (18)
- EPS shows upward trend
- Price CAGR 24.46%
- ROIC 6.8%
- Gross Margin 74.8%
- Debt/Equity ratio
- Operating Margin 11.4%
- Positive Free Cash Flow
- CapEx intensity
- Debt/EBITDA
- Return on Tangible Assets
- ROE 13.8%
- Revenue Growth 5Y 24.1%
- Analyst Consensus 91% Buy
- Earnings Surprise avg 4.8%
- PEG Ratio 1.20
- Earnings Quality (OCF/NI) 3.18
- Share Dilution 0.6%
- Piotroski F-Score 5/9
Failed (7)
- P/FCF 30.25
- P/B Ratio 11.07
- Current Ratio
- Low reliance on intangibles
- Price below Graham Number
- DCF valuation (Overvalued)
- Net Margin Trend 11.3% vs 13.8%
Unavailable (2)
- Dividend Payout NaN%
- Interest Coverage
Piotroski F-Score
Mixed signals: some areas need attention
Earnings Quality
High quality: earnings backed by cash
Share Dilution
Share count is stable
Institutional Holdings
Governance
Executive Team
| Name | Title | Age |
|---|---|---|
| Mr. William R. McDermott | Chairman & CEO | 63 |
| Ms. Gina M. Mastantuono | President & CFO | 55 |
| Mr. Amit K. Zavery | President, Chief Product Officer & COO | 53 |
| Mr. Frederic B. Luddy | Founder & Director | 70 |
| Ms. Jacqueline P. Canney | Chief People & AI Enablement Officer | 57 |
| Mr. Paul Fipps | President of Global Customer Operations | 52 |
| Mr. Hossein Nowbar | President, Secretary & Chief Legal Officer | - |
| Ms. Danielle Fontaine | CAO & Corporate Controller | - |
| Mr. Pat Casey | Executive VP & CTO | - |
| Mr. Darren Yip | Head of Investor Relations | - |
Audit Risk
2
Board Risk
9
Compensation Risk
7
Shareholder Rights Risk
2
Part 2 · The price and when to enter
This part won't tell you whether the company is worth owning: it helps you choose when to buy it, once the fundamentals have convinced you. Inside: technical analysis, potential, historical drawdowns, gamma exposure.
Documents
- View document
Annual Report (10-K)
A yearly overview of the business, its financial results, and the risks it faces.
Filed on 2026-01-29
- View document
Quarterly Report (10-Q)
A snapshot of financial performance for the most recent three-month period.
Filed on 2026-07-23
- View document
Current Report (8-K)
An announcement of a major event, such as a leadership change or big news.
Filed on 2026-07-22
via SEC EDGAR
Income History
via SEC EDGAR
Latest News
Recent headlines for NOW, sourced from Markets Gazette.
- 16d agoPOSITIVEPerché le richieste di rallentare l'IA possono favorire le azioni ServiceNow
ServiceNow shares surged 7.4% to $142.35 on Monday, bucking a broader tech downturn. This rally suggests investors are reassessing the threat of AI agents to established enterprise applications. While the PHLX Semiconductor Index fell 5.9% amid calls for a slowdown in advanced AI model development, ServiceNow's rise indicates a potential benefit from slower AI progress. For investors, this suggests that a more cautious approach to AI deployment could enhance the value of governance solutions, a key area for ServiceNow, mitigating disruption risks and potentially boosting its market position.
- 8/28/2026POSITIVEÈ un'opportunità d'oro comprare ServiceNow mentre si avvicina un raro pattern?
ServiceNow shares have experienced a significant rally, climbing 70% from their year-to-date low to reach $138. This upward momentum is supported by robust demand for its services and the anticipation of a 'golden cross' pattern, a bullish technical indicator. Despite a previous dip from a high of $240 to $81.23, attributed partly to the rise of AI tools like ChatGPT, ServiceNow's fundamentals remain strong. The company's ability to navigate the evolving tech landscape and capitalize on its service offerings suggests continued growth potential for investors.
- 8/20/2026POSITIVEServiceNow, Adobe e Workday: BofA alza i target — cosa alimenta l'ottimismo
Bank of America has raised price targets for several software companies, including ServiceNow, Workday, and Adobe, citing their strong potential to monetize artificial intelligence. This optimism is fueling a broader rally in the software sector, with ServiceNow shares climbing 6.5% on Wednesday. The move signals a shift in investor sentiment, moving away from fears that AI would disrupt traditional software business models. Instead, investors are increasingly betting on established companies to leverage AI, potentially enhancing their existing product offerings and driving revenue growth. This positive outlook suggests continued upward momentum for these software giants.
- 8/19/2026POSITIVEServiceNow’s stock leads a software rally. Here’s what’s energizing investors.
ServiceNow Inc. is leading a rally in traditional software stocks, driven by increasing investor confidence that the sector can effectively navigate and integrate Artificial Intelligence (AI) disruption rather than be replaced by it. This sentiment suggests that established software providers are well-positioned to leverage AI advancements, potentially enhancing their product offerings and maintaining competitive advantages. The positive outlook for ServiceNow and its peers indicates a potential for sustained growth and may attract further investment into the software sector as a whole.
- 8/14/2026NEUTRALServiceNow CFO: Trillions are being spent on AI initiatives. Are companies asking these 3 key questions?
ServiceNow's CFO highlighted the immense scale of AI investments, with trillions being allocated globally. This surge in spending underscores a critical juncture for businesses, forcing rapid, often uncertain, investment decisions. The CFO's commentary implies that companies are grappling with strategic choices regarding AI deployment and ROI. While the news points to significant capital flowing into AI, it doesn't provide specific financial figures or direct guidance from ServiceNow itself, making its immediate market impact neutral. Investors should monitor how ServiceNow capitalizes on this AI spending trend.
- 7/23/2026NEGATIVEServiceNow’s stock falls as a new AI threat overshadows earnings beat
ServiceNow Inc. (NOW) experienced a stock decline despite beating earnings expectations, as the recent launch of OpenAI's Presence AI model has rekindled concerns about potential disruption to its enterprise software offerings. While the company's own AI advancements are showing traction, the competitive threat from a major AI player like OpenAI introduces significant uncertainty. Investors are now weighing the company's current performance against the long-term implications of this new competitive landscape, leading to a cautious sentiment despite the positive earnings report.
- 7/23/2026POSITIVEWhy ServiceNow’s stock is a rare bright spot while the rest of tech stumbles
ServiceNow Inc. shares experienced a notable surge, outperforming a struggling tech sector. This positive momentum is attributed to the company's recent earnings beat and a robust artificial intelligence pipeline, which collectively provided a much-needed boost for software investors. The company's ability to deliver strong results and demonstrate significant growth potential in AI positions it as a standout performer, offering a compelling narrative for those seeking resilient tech investments amidst broader market headwinds.
via Markets Gazette