NOW Analysis — TradeApes

ServiceNow, Inc. (NOW)

Technology Software

$104.70 close · Jul 21, 2026

Below 50 & 200 SMA

52W -46.9% from High

Methodology Breakdown

Triangulated across multiple voting methods. The breakdown below shows each method's output and which ones voted on the final verdict.

Method	Value	Role
DCF (Base Case)	$58.03	REFERENCE
DCF (TTM-anchored)	$74.89	REFERENCE
Peer Multiples	$37.52	REFERENCE
Earnings Power Value	$15.95	REFERENCE
Book Value Anchor	$38.59	REFERENCE
Earnings Anchor	$13.93	REFERENCE
Cash Floor	$1.82	REFERENCE
NAV Anchor	$38.59	REFERENCE

Triangulation spread: 79% across voting methods.

Health Score

Out of 100

Mixed

Pillar Scores

Financial Strength 70

Operating Trend 55

Valuation 25

Capital Allocation 40

Risk Management 70

Positives

↑ Net cash position — more cash on hand than total debt +3.8

↑ Strong interest coverage — EBIT covers interest 10×+ +2.5

↑ Free cash flow positive — business generates real spendable cash +2.5

Concerns

↓ Extreme P/E — above 45×, very high expectations embedded in price -5.0

↓ Weak liquidity — current assets below current liabilities -2.5

↓ Above historical median — trading above its own valuation average -2.5

Signal contribution: +11.4 from strengths -13.8 from concerns

Health Score Trend 8 snapshots

Cross-Check: Greenblatt Magic Formula

✓ Aligned

Earnings Yield

2.0%

Rank 1027 / 1256

Return on Capital

6514.3%

Rank 4 / 1256

Combined Rank

59th pctl

1256 companies ranked

Based on Joel Greenblatt's Magic Formula methodology. Not investment advice.

Financials

TTM Financials

Revenue ?Total sales generated from the company's primary business activities over the trailing twelve months.	13.96B
Gross Profit ?Revenue minus cost of goods sold. What remains before operating expenses — reflects pricing power and production efficiency.	10.69B
Operating Income ?Profit from core business operations after all operating expenses (EBIT). Excludes interest and taxes.	1.88B
Net Income ?Bottom-line profit after all expenses, interest, and taxes are deducted from revenue.	1.76B
Free Cash Flow ?Operating cash flow minus capital expenditures. The actual cash the business generates after maintaining its assets — the truest measure of profitability.	4.63B
EBITDA ?Earnings before interest, taxes, depreciation & amortization. A proxy for operating cash earnings that strips out accounting and financing differences.	2.71B
Total Debt ?Combined short-term and long-term interest-bearing debt obligations. Compare against cash and earnings to gauge leverage risk.	—
Cash & Equivalents ?Highly liquid assets on hand — cash, money market funds, and short-term securities. The company's immediate financial cushion.	2.70B

Valuation

Market Cap	108.88B
Enterprise Value	107.11B
EV / Revenue	7.7x
EV / EBITDA	39.5x
P/E (TTM)	62.0x
Forward P/E (extrapolated)	13.3x
PEG	0.9x
P/FCF	23.5x
FCF Yield	4.3%

EV/EBITDA vs history — 64% percentile (mid-range)

CheapMidExpensive

EV/Sales vs history — 64% percentile (mid-range)

CheapMidExpensive

P/Book vs history — 65% percentile (mid-range)

CheapMidExpensive

Relative Valuation

Using relative multiples

EV / Revenue

7.7x

Book Value / Share

$11.28

Price / Book

9.3x

P/E (TTM)

62.0x

Price / Sales

7.8x

Key Metrics

Gross Margin ?Gross profit as a % of revenue. Measures how efficiently the company produces its goods or services — higher is better.	76.6%
EBITDA Margin ?EBITDA as a % of revenue. Shows core operating profitability before accounting adjustments — useful for comparing across industries.	19.4%
Net Margin ?Net income as a % of revenue. The ultimate measure of overall profitability after every expense, interest payment, and tax is accounted for.	12.6%
FCF Margin ?Free cash flow as a % of revenue. Shows how much of each dollar of revenue converts into real, spendable cash.	33.2%
Revenue Growth (YoY) ?Year-over-year change in total revenue. Measures business momentum — sustained growth above 15% is typically considered strong.	21.7%
Net Income Growth (YoY) ?Year-over-year change in net income. Shows whether profits are growing faster or slower than revenue — a key indicator of improving or deteriorating quality.	14.2%
Piotroski F-Score ?Score from 0–9 measuring financial strength across profitability, leverage, and efficiency signals. 8–9 = strong, 0–2 = distressed.	5 / 9
Altman Z-Score ?Bankruptcy risk model. Above 2.99 = safe zone, 1.81–2.99 = grey zone, below 1.81 = distress signal. Most useful for manufacturing companies.	1.98

Community Sentiment

Not enough ratings yet.
Be the first to rate this company below.

Quarterly Financials

Metric	Q1 '26	Q4 '25	Q3 '25	Q2 '25	Q1 '25	Q4 '25	Q3 '25	Q2 '25	Q1 '25	Q4 '25	Q3 '24	Q2 '24
Revenue ?Total quarterly sales from primary business operations.	3.77B	3.57B	3.41B	3.22B	3.09B	2.96B	2.80B	2.63B	2.60B	2.44B	2.29B	2.15B
Gross Profit ?Quarterly revenue minus cost of goods sold.	2.83B	2.73B	2.63B	2.49B	2.44B	2.33B	2.21B	2.08B	2.08B	1.92B	1.79B	1.68B
Operating Income ?Quarterly profit from core operations before interest and taxes (EBIT).	503.0M	443.0M	572.0M	358.0M	451.0M	374.0M	418.0M	240.0M	332.0M	270.0M	231.0M	117.0M
Net Income ?Quarterly bottom-line profit after all expenses and taxes.	469.0M	401.0M	502.0M	385.0M	460.0M	384.0M	432.0M	262.0M	347.0M	295.0M	242.0M	1.04B
FCF ?Quarterly free cash flow: operating cash minus capital expenditures.	1.53B	2.00B	578.0M	526.0M	1.47B	1.38B	469.0M	358.0M	1.21B	1.34B	175.0M	448.0M

Revenue & Free Cash Flow

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Disclaimer: This analysis is for informational purposes only and does not constitute investment advice. Scores and valuations are derived from SEC filings and publicly available data. Always do your own research before making investment decisions.