# ServiceNow Inc. (NOW) fundamentals

Data as of 2026-09-08. NYSE, United States. Sector: Technology / Software. Price $141.26, market value $146.0 billion.

## Valuation
- **P/E (trailing): 88.3×** (5-yr avg 229.5×, 3-yr avg 110.2×). ServiceNow Inc. trades at 88.3× trailing earnings, well below its own five-year average of 229.5×: cheap by its own standards. The Technology median in the September 2026 study was 32.1×. Forward P/E is 28.2×, lower than trailing, so analysts expect earnings to grow.
- **PEG: 1.29**. A PEG of 1.29 is in the range usually read as fairly priced for its growth.
- **Price / sales: 9.9×**. Each dollar of revenue is priced at 9.9×.
- **Price / book: 11.7×**. The shares trade at 11.7× book value; most of the value is in earnings power and intangibles rather than the balance sheet.
- **EV / EBITDA: 52.3×**. Enterprise value is 52.3× operating earnings before depreciation, the multiple that ignores how the company is financed; above 20× is demanding.
- **Free-cash-flow yield: 3.1%** (5-yr avg 2.1%). Free cash flow equals 3.1% of the market value, above its five-year average of 2.1%, so the shares are cheaper on cash than they have usually been.
- **Earnings yield: 1.1%**. The inverse of the P/E: 1.1% of the price is earned each year.

## Profitability
- **Gross margin: 74.8%**. ServiceNow Inc. keeps 74.8% of revenue after the direct cost of what it sells, the kind of margin that comes with software, brands or pricing power.
- **Operating margin: 11.4%**. 11.4% of revenue is left after running the business.
- **Net margin: 13.2%**. 13.2% of each dollar of sales reaches the bottom line.
- **Return on equity: 13.5%**. 13.5% on shareholders' equity is solid.
- **Return on invested capital: 12.4%**. Return on all capital, debt included, is 12.4%.
- **Return on assets: 6.4%**. Each dollar of assets produces 6.4% of profit.

## Growth
- **Revenue growth (1 yr): 20.9%** (3-yr 22.4%/yr, 5-yr 24.1%/yr). Revenue grew 20.9% over the last year, against 24.1% a year compounded over five years.
- **EPS growth (1 yr): 21.9%** (3-yr 73.5%/yr, 5-yr 69.9%/yr). Earnings per share rose 21.9%, roughly in step with revenue.
- **Free-cash-flow growth (3 yr): 28.2%/yr**. Free cash flow has compounded at 28.2% a year over three years, lagging earnings: check whether profits are turning into cash.

## Financial health
- **Debt to equity: 0.12**. Debt is 0.12 times equity: a conservative balance sheet.
- **Net debt / EBITDA: net cash**. ServiceNow Inc. holds more cash than debt.
- **Current ratio: 1.00** (quick 1.00). Current assets cover the next year's liabilities 1.00 times.
- **Altman Z-score: 8.14**. A Z-score of 8.14 places the company in the safe zone for bankruptcy risk.
- **Piotroski F-score: 4/9**. 4 of 9 checks pass: mixed.

## Dividends
- **Dividend: none**. ServiceNow Inc. does not currently pay a dividend.

## Analyst view
- **Analyst consensus: strong_buy** (46 analysts). 46 analysts cover ServiceNow Inc.; the consensus is strong_buy, with an average price target of $141.84 (+0% from the current price). Analyst opinion is shown for context; it is not part of the Fundamental Score.

## Price and momentum
- **Total return (1 yr): -21.4%** (YTD -7.8%, 3-mo 25.6%). The shares are down 21.4% over twelve months including dividends.
- **From 52-week high: -27.5%** (73.9% above the low). Trading 27% below its 52-week high.
- **200-day average: above**. The price sits above its 200-day moving average, the usual definition of an uptrend.
- **RSI (14-day): 61**. An RSI of 61 is neutral.
- **Beta (1 yr): 0.71** (volatility 57%). Beta of 0.71 against the S&P 500: the shares move roughly with the market.

Live score and charts: https://foliofundamentals.com/analyzer?s=NOW · Page: https://foliofundamentals.com/stocks/now

Not investment advice.