ServiceNow provides cloud-based solutions that define, structure, manage, and automate services to enterprise operations in North America, Europe, the Middle East, Africa, the Asia Pacific, and other countries. The Company provides cloud-based service management solutions that address the needs of a range of departments within an organization, including IT, human resources (HR), facilities, field service, marketing, legal and finance. The company was founded in 2004 and is based in Santa Clara, California.
NOW Price Forecast Based on DCF Valuation
DCF Fair Value Target:
The table below illustrates the output of a discounted cash flow forecast using a variety of scenarios for ServiceNow Inc. To summarize, we found that ServiceNow Inc ranked in the 45th percentile in terms of potential gain offered. We should note, though, that the most conservative analysis suggests this stock will yield negative results -- and thus may be a potential short opportunity. In terms of the factors that were most noteworthy in this DCF analysis for NOW, they are:
The business' balance sheet suggests that 1% of the company's capital is sourced from debt; this is greater than merely 6.01% of the free cash flow producing stocks we're observing.
NOW's estimated cost of debt, based largely on its market capitalization and its interest coverage ratio, is 2%; for context, that number is higher than 51.82% of tickers in our DCF set.
As a business, ServiceNow Inc experienced a tax rate of about 184% over the past twelve months; relative to its sector (Technology), this tax rate is higher than 98.37% of stocks generating free cash flow.
Terminal Growth Rate in Free Cash Flow
Return Relative to Current Share Price
Want more companies with a valuation profile/forecast similar to that of ServiceNow Inc? See ISDR, EVOL, UI, WYY, and AMAT.
(Source: Wikipedia) ServiceNow, Inc. (NOW) is literally the Energizer Bunny of SaaS, as the strong financial performances never seems to stop. The company's five-year revenue growth rate is 38.4% CAGR and in the most recent quarter (Q2 2020) still grew at a 30+% clip, even with the pandemic wreaking havoc...
Saying the company likely just finished its "best quarter ever," JMP analyst Patrick Walravens raises ServiceNow's (NOW) price target from $460 to $534 with a Market Outperform rating.Citing public federal government sources, Walravens says Now's big Q3 deals seem to include a $32.6M Department of Veterans Affairs award, $8.8M Department of Agriculture award, and...
LEHI, Utah, Sept. 24, 2020 /PRNewswire/ -- DigiCert, Inc., the world's leading provider of TLS/SSL, IoT and PKI solutions, today announced a collaboration with ServiceNow, the leading digital workflow company that makes work, work better for people, to simplify certificate management…
ServiceNow today announced the latest release of its workflow automation platform. With this, the company is emphasizing a number of new solutions for specific verticals, including for telcos and financial services organizations. This focus on verticals extends the company’s previous efforts to branch out beyond the core IT management capabilities that defined its business during […]
ROCKVILLE, Md.--(BUSINESS WIRE)-- #NowatWork20--3CLogic, a leading provider of cloud contact center solutions, today announced its multi-country sponsorship of ServiceNow’s® annual Now at Work Digital Experience event. The annual event, recently converted to a single-day digital format, is considered one of the largest gatherings of professionals focused on digital transformation. “This year we have seen an acceleration in the adoption of cloud-enabled technologies as enterprises across industries adjust to t