---
title: ServiceNow (NOW) — intrinsic value and fair price
canonical: https://sweetvaluelab.com/stocks/now
ticker: NOW
as_of: 2026-10-17
sector: Technology
industry: Software - Application
---
# ServiceNow (NOW)

ServiceNow (NOW) closed at $141.97 on Oct 16, 2026, overvalued by 264% vs its model value of $38.97 (from a five-year discounted cash flow).

## Key figures

| Figure | Value |
| --- | ---: |
| Last close | $141.97 (Oct 16, 2026) |
| Model value (from a five-year discounted cash flow) | $38.97 |
| Price vs model | overvalued by 264% vs model |
| Range of that model | $24.65 – $94.06 |
| Market value | $146.8B |
| P/E (fiscal 2025) | 85.0 |
| Net margin (fiscal 2025) | 13.2% |
| Free cash flow (fiscal 2025) | $4.6B |
| Dividend yield (trailing twelve months) | 0.00% |
| Beta | 0.99 |
| Cost of capital (WACC) | 9.11% |
| Business classification | High Growth (High revenue growth (~22% recent), Moderate margins (13% net margin), Highly cyclical earnings) |

## Valuation models

Each model's value per share and the role the engine gave it for this business. The headline above is one model's value; every other model is listed with its own, and each has a page of its own under the valuation. Computed Oct 17, 2026.

| Model | Role | Value per share | Low | High |
| --- | --- | ---: | ---: | ---: |
| DCF · Perpetuity growth · 5y | primary | $38.97 | $24.65 | $94.06 |
| DCF · Perpetuity growth · 10y | cross check | $53.64 | $33.70 | $129.97 |
| DCF · EBITDA exit · 5y | cross check | $208.13 | $176.56 | $244.54 |
| DCF · EBITDA exit · 10y | cross check | $236.30 | $184.31 | $302.83 |
| P/E · peers | cross check | $57.79 | $56.33 | $99.62 |
| P/E · own history | cross check | $239.47 | $154.30 | $598.66 |
| PEG | sanity check | $101.82 | $101.82 | $101.82 |
| EV/EBITDA · peers | cross check | $166.05 | $161.98 | $225.65 |
| EV/Revenue · peers | cross check | $71.16 | $66.51 | $76.88 |
| Earnings power value | cross check | $0.00 | $0.00 | $0.00 |

## Insider activity (SEC Form 4)

Past 90 days: 0 open-market buys ($0) and 3 open-market sales ($1.7M); 10b5-1 plan sales included.

| Date | Insider | Relationship | Transaction | Shares | Value |
| --- | --- | --- | --- | ---: | ---: |
| Aug 31, 2026 | Fipps Paul | President, Global Customer Ops | Open-market sell | 2,034 | $300,777.1 |
| Aug 28, 2026 | Canney Jacqueline P | Chief People & AI Enblmt. Off. | Open-market sell (10b5-1 plan) | 7,847 | $1.1M |
| Aug 27, 2026 | Chamberlain Paul Edward | Director | Open-market sell | 2,700 | $365,851.1 |
| Aug 17, 2026 | McDermott William R | Chairman & CEO | Option/RSU exercise | 4,160 | $0 |
| Aug 17, 2026 | McDermott William R | Chairman & CEO | Tax withholding | 2,236 | $263,177.2 |

## Recent SEC filings

| Filed | Form | What | Filing |
| --- | --- | --- | --- |
| Aug 20, 2026 | S-8 | Employee stock plan registration | https://www.sec.gov/Archives/edgar/data/1373715/000137371526000083/forms-8xslideraug2026.htm |
| Jul 23, 2026 | 10-Q | Quarterly report | https://www.sec.gov/Archives/edgar/data/1373715/000137371526000076/now-20260630.htm |
| Jul 22, 2026 | S-8 | Employee stock plan registration | https://www.sec.gov/Archives/edgar/data/1373715/000137371526000074/forms-82026xamended2021eip.htm |
| Jul 22, 2026 | S-8 | Employee stock plan registration | https://www.sec.gov/Archives/edgar/data/1373715/000137371526000073/forms-8xapollojul2026.htm |
| Jul 22, 2026 | 8-K | 2.02 Results of Operations (Earnings); 9.01 Financial Statements and Exhibits | https://www.sec.gov/Archives/edgar/data/1373715/000137371526000072/now-20260722.htm |

## Superinvestors holding it (latest 13F)

| Manager | Quarter | Shares | Value |
| --- | --- | ---: | ---: |
| Polen Capital | 2026-06-30 | 5,370,172 | $533.2M |
| Akre | 2026-06-30 | 1,246,099 | $123.7M |
| Chase Coleman | 2026-06-30 | 873,485 | $86.7M |
| Bridgewater | 2026-06-30 | 635,381 | $63.1M |

8 tracked managers in all.

## About

ServiceNow, Inc. specializes in delivering cloud-based solutions designed to streamline and automate critical business services for organizations across the globe. Its flagship "Now Platform" serves as the foundation, leveraging technologies such as workflow automation, artificial intelligence (AI), machine learning (ML), and robotic process automation (RPA). This platform also incorporates robust features like performance analytics, electronic service catalogs, configuration management systems, data benchmarking, encryption capabilities, and various collaboration and development tools. ServiceNow offers a comprehensive suite of applications built on this platform, catering to diverse enterprise needs. Key offerings include IT Service Management (ITSM), which streamlines support for employees, customers, and partners; IT Business Management (ITBM); IT Operations Management (ITOM), design…

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Source: https://sweetvaluelab.com/stocks/now (SweetValueLab, free, no account). Prices and statements from Financial Modeling Prep; filings from SEC EDGAR. Research and educational data, not investment advice; nothing here is a recommendation to buy, sell or hold any security.