ServiceNow (NOW)
Market Price (10/17/2025): $891.49 | Market Cap: $184.7 BilSector: Information Technology | Industry: Systems Software
ServiceNow (NOW)
Market Price (10/17/2025): $891.49Market Cap: $184.7 BilSector: Information TechnologyIndustry: Systems Software
Investment Highlights
Strong revenue growthRev Chg LTMRevenue Change % Last Twelve Months (LTM) is 21% | Expensive valuation multiplesP/EBITPrice/EBIT or Price/(Operating Income) ratio is 91x, P/EPrice/Earnings or Price/(Net Income) is 112x | |
Attractive cash flow generationCFO/Rev LTMCash Flow from Operations / Revenue (Sales), Last Twelve Months (LTM) is 39%, FCF/Rev LTMFree Cash Flow / Revenue (Sales), Last Twelve Months (LTM) is 32%, CFO LTM is 4.7 Bil, FCF LTM is 3.8 Bil | Yield minus risk free rate is negativeERPEquity Risk Premium (ERP) = Total Yield - Risk Free Rate, Reflects the premium above risk free assets offered by the investment. is -3.6% | |
Low stock price volatilityVol 12M is 39% |
Strong revenue growthRev Chg LTMRevenue Change % Last Twelve Months (LTM) is 21% |
Attractive cash flow generationCFO/Rev LTMCash Flow from Operations / Revenue (Sales), Last Twelve Months (LTM) is 39%, FCF/Rev LTMFree Cash Flow / Revenue (Sales), Last Twelve Months (LTM) is 32%, CFO LTM is 4.7 Bil, FCF LTM is 3.8 Bil |
Low stock price volatilityVol 12M is 39% |
Expensive valuation multiplesP/EBITPrice/EBIT or Price/(Operating Income) ratio is 91x, P/EPrice/Earnings or Price/(Net Income) is 112x |
Yield minus risk free rate is negativeERPEquity Risk Premium (ERP) = Total Yield - Risk Free Rate, Reflects the premium above risk free assets offered by the investment. is -3.6% |
Market Valuation & Key Metrics
NOW Stock
Return vs. Risk
Price Returns Compared
2020 | 2021 | 2022 | 2023 | 2024 | 2025 | Total [1] | |
---|---|---|---|---|---|---|---|
Returns | |||||||
NOW Return | 95% | 18% | -40% | 82% | 50% | -16% | 215% |
Peers Return | 132% | 1% | -57% | 50% | 8% | -16% | 38% |
S&P 500 Return | 16% | 27% | -19% | 24% | 23% | 13% | 103% |
Monthly Win Rates [3] | |||||||
NOW Win Rate | 83% | 50% | 17% | 75% | 75% | 44% | |
Peers Win Rate | 67% | 47% | 23% | 58% | 43% | 36% | |
S&P 500 Win Rate | 58% | 75% | 42% | 67% | 75% | 67% | |
Max Drawdowns [4] | |||||||
NOW Max Drawdown | -12% | -17% | -47% | -6% | -9% | -32% | |
Peers Max Drawdown | -25% | -25% | -61% | -14% | -32% | -37% | |
S&P 500 Max Drawdown | -31% | -1% | -25% | -1% | -2% | -15% | |
[1] Cumulative total returns since the beginning of 2020
[2] Peers: TEAM, PEGA, ALRM, FSLY, VRNT. See NOW Returns vs. Peers.
[3] Win Rate = % of calendar months in which monthly returns were positive
[4] Max drawdown represents maximum peak-to-trough decline within a year
[5] 2025 data is for the year up to 10/16/2025 (YTD)
Downturns Compared
Event | NOW | S&P 500 |
---|---|---|
2022 Inflation Shock | ||
% Loss | -51.3% | -25.4% |
% Gain to Breakeven | 105.3% | 34.1% |
Time to Breakeven | 423 days | 464 days |
2020 Covid Pandemic | ||
% Loss | -30.2% | -33.9% |
% Gain to Breakeven | 43.3% | 51.3% |
Time to Breakeven | 32 days | 148 days |
2018 Correction | ||
% Loss | -27.2% | -19.8% |
% Gain to Breakeven | 37.4% | 24.7% |
Time to Breakeven | 82 days | 120 days |
How Low Can It Go?
ServiceNow's stock fell -51.3% during the 2022 Inflation Shock from a high on 11/4/2021. A -51.3% loss requires a 105.3% gain to breakeven.
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Asset Allocation
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Latest Trefis Analyses
Trade Ideas
Select past ideas related to NOW. For more, see Trefis Trade Ideas.
Date | Ticker | Company | Category | Trade Strategy | 6M Fwd Rtn | 12M Fwd Rtn | 12M Max DD |
---|---|---|---|---|---|---|---|
09302025 | ADBE | Adobe | Monopoly | MY | Getting CheaperMonopoly-Like with P/S DeclineLarge cap with monopoly-like margins or cash flow generation and getting cheaper based on P/S multiple | -6.7% | -6.7% | -6.7% |
09302025 | CRM | Salesforce | Monopoly | MY | Getting CheaperMonopoly-Like with P/S DeclineLarge cap with monopoly-like margins or cash flow generation and getting cheaper based on P/S multiple | 3.8% | 3.8% | -0.6% |
09302025 | MPWR | Monolithic Power Systems | Monopoly | MY | Getting CheaperMonopoly-Like with P/S DeclineLarge cap with monopoly-like margins or cash flow generation and getting cheaper based on P/S multiple | 11.5% | 11.5% | -1.8% |
09262025 | POWI | Power Integrations | Dip Buy | DB | CFO/Rev | Low D/EDip Buy with High Cash Flow MarginsBuying dips for companies with significant cash flows from operations and reasonable debt / market cap | 17.5% | 17.5% | -13.4% |
09262025 | ROP | Roper Technologies | Monopoly | MY | Getting CheaperMonopoly-Like with P/S DeclineLarge cap with monopoly-like margins or cash flow generation and getting cheaper based on P/S multiple | 0.3% | 0.3% | -0.3% |
10312022 | NOW | ServiceNow | Monopoly | MY | Getting CheaperMonopoly-Like with P/S DeclineLarge cap with monopoly-like margins or cash flow generation and getting cheaper based on P/S multiple | 7.1% | 38.3% | -14.1% |
04302022 | NOW | ServiceNow | Monopoly | MY | Getting CheaperMonopoly-Like with P/S DeclineLarge cap with monopoly-like margins or cash flow generation and getting cheaper based on P/S multiple | -12.1% | -3.9% | -28.5% |
Date | Ticker | Company | Category | Trade Strategy | 6M Fwd Rtn | 12M Fwd Rtn | 12M Max DD |
---|---|---|---|---|---|---|---|
09302025 | ADBE | Adobe | Monopoly | MY | Getting CheaperMonopoly-Like with P/S DeclineLarge cap with monopoly-like margins or cash flow generation and getting cheaper based on P/S multiple | -6.7% | -6.7% | -6.7% |
09302025 | CRM | Salesforce | Monopoly | MY | Getting CheaperMonopoly-Like with P/S DeclineLarge cap with monopoly-like margins or cash flow generation and getting cheaper based on P/S multiple | 3.8% | 3.8% | -0.6% |
09302025 | MPWR | Monolithic Power Systems | Monopoly | MY | Getting CheaperMonopoly-Like with P/S DeclineLarge cap with monopoly-like margins or cash flow generation and getting cheaper based on P/S multiple | 11.5% | 11.5% | -1.8% |
09262025 | POWI | Power Integrations | Dip Buy | DB | CFO/Rev | Low D/EDip Buy with High Cash Flow MarginsBuying dips for companies with significant cash flows from operations and reasonable debt / market cap | 17.5% | 17.5% | -13.4% |
09262025 | ROP | Roper Technologies | Monopoly | MY | Getting CheaperMonopoly-Like with P/S DeclineLarge cap with monopoly-like margins or cash flow generation and getting cheaper based on P/S multiple | 0.3% | 0.3% | -0.3% |
10312022 | NOW | ServiceNow | Monopoly | MY | Getting CheaperMonopoly-Like with P/S DeclineLarge cap with monopoly-like margins or cash flow generation and getting cheaper based on P/S multiple | 7.1% | 38.3% | -14.1% |
04302022 | NOW | ServiceNow | Monopoly | MY | Getting CheaperMonopoly-Like with P/S DeclineLarge cap with monopoly-like margins or cash flow generation and getting cheaper based on P/S multiple | -12.1% | -3.9% | -28.5% |
Research & Analysis
Invest in Strategies
Wealth Management
Peer Comparisons for ServiceNow
Financials
Median | |
---|---|
Name | |
Mkt Price | 52.59 |
Mkt Cap | 5.9 |
Rev LTM | 1,326 |
Op Inc LTM | 101 |
FCF LTM | 284 |
FCF 3Y Avg | 204 |
CFO LTM | 298 |
CFO 3Y Avg | 221 |
Growth & Margins
Median | |
---|---|
Name | |
Rev Chg LTM | 10.1% |
Rev Chg 3Y Avg | 12.4% |
Rev Chg Q | 10.9% |
QoQ Delta Rev Chg LTM | 2.5% |
Op Mgn LTM | 10.7% |
Op Mgn 3Y Avg | 8.3% |
QoQ Delta Op Mgn LTM | 0.4% |
CFO/Rev LTM | 21.7% |
CFO/Rev 3Y Avg | 17.9% |
FCF/Rev LTM | 20.4% |
FCF/Rev 3Y Avg | 16.0% |
Valuation
Median | |
---|---|
Name | |
Mkt Cap | 5.9 |
P/S | 4.1 |
P/EBIT | 14.8 |
P/E | 19.7 |
P/CFO | 22.1 |
Total Yield | 1.7% |
Dividend Yield | 0.0% |
FCF Yield 3Y Avg | 3.5% |
D/E | 0.2 |
Net D/E | -0.0 |
Returns
Median | |
---|---|
Name | |
1M Rtn | -5.8% |
3M Rtn | -4.2% |
6M Rtn | 21.2% |
12M Rtn | -4.5% |
3Y Rtn | -10.7% |
1M Excs Rtn | -7.8% |
3M Excs Rtn | -10.2% |
6M Excs Rtn | -6.1% |
12M Excs Rtn | -18.7% |
3Y Excs Rtn | -91.9% |
Comparison Analyses
Returns Analyses
Earnings Returns History
Expand for MoreForward Returns | |||
---|---|---|---|
Earnings Date | 1D Returns | 5D Returns | 21D Returns |
7/23/2025 | 4.2% | 2.2% | -8.3% |
4/23/2025 | 15.5% | 17.5% | 25.0% |
1/29/2025 | -11.4% | -10.2% | -18.7% |
10/23/2024 | 5.4% | 4.7% | 15.4% |
7/24/2024 | 13.4% | 11.4% | 12.3% |
4/24/2024 | -4.0% | -8.1% | 1.6% |
1/24/2024 | 0.4% | 0.3% | 1.0% |
10/25/2023 | 3.9% | 11.9% | 27.1% |
... | |||
SUMMARY STATS | |||
# Positive | 17 | 18 | 17 |
# Negative | 7 | 6 | 7 |
Median Positive | 5.5% | 6.6% | 11.1% |
Median Negative | -3.6% | -5.9% | -5.2% |
Max Positive | 15.5% | 20.0% | 27.1% |
Max Negative | -11.4% | -13.9% | -18.7% |
SEC Filings
Expand for MoreReport Date | Filing Date | Filing |
---|---|---|
6302025 | 7242025 | 10-Q 6/30/2025 |
3312025 | 4232025 | 10-Q 3/31/2025 |
12312024 | 1302025 | 10-K 12/31/2024 |
9302024 | 10242024 | 10-Q 9/30/2024 |
6302024 | 7252024 | 10-Q 6/30/2024 |
3312024 | 5062024 | 10-Q 3/31/2024 |
12312023 | 1252024 | 10-K 12/31/2023 |
9302023 | 10262023 | 10-Q 9/30/2023 |
6302023 | 7272023 | 10-Q 6/30/2023 |
3312023 | 4272023 | 10-Q 3/31/2023 |
12312022 | 1312023 | 10-K 12/31/2022 |
9302022 | 10272022 | 10-Q 9/30/2022 |
6302022 | 7282022 | 10-Q 6/30/2022 |
3312022 | 4282022 | 10-Q 3/31/2022 |
12312021 | 2032022 | 10-K 12/31/2021 |
9302021 | 10282021 | 10-Q 9/30/2021 |
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