ServiceNow, Inc. — Software - Application. Scored on the same transparent 7-signal model behind the daily rankings.
★
NOW
ServiceNow, Inc. · Software - Application
FCF$4.6bB
Rev+20.9%A-
D/E0.21B+
P/E64.0xC+
PEG1.05B+
79.2Score
$108.84$112.2B
1Y Target$141.12Analyst consensus · 46 analysts
5Y Target$206.62Compound horizon
10Y Target$306.50Long-dated conviction
FCF$4.6bTTMB
FCF $4.6b — solid, comfortably covers operations and capital return
Rev+20.9%TTM YoYA-
Revenue +20.9% — strong growth, well above S&P median (~7%)
D/E0.21B+
D/E 0.21 — below the Technology debt median (≈40th pctile)
P/E64.0xC+
P/E 64.0 — above the Technology median (≈75th pctile)
PEG1.05B+
PEG 1.05 — near fair value, classic Lynch benchmark (1.0)
Forward price target — the 1-year figure is the analyst consensus where the stock is covered; the 5- and 10-year figures compound our earnings estimate from there. The DCF below is a separate cross-check on intrinsic value (what it's worth today), not another target.
Quality-growth score · 79.2
Quality0.76
Growth1.00
Value0.65
Entry · Margin of safety
52-week rangeNear 52-week low
48% off the 12-month high
vs DCF fair value6% aboveest. fair value ~$103
Quality signals · context only
Gross profitability44% · A-gross profit ÷ total assets (Novy-Marx)
ROIC11.2% · Breturn on invested capital — not score-weighted
Why now
ServiceNow’s Automation Engine and App Engine lock enterprises into a single, extensible workflow platform, fueling a 20.9% YoY revenue expansion while delivering $4.6B of free cash flow and trading at a PEG of 1.03, a rare combination for a high‑growth SaaS name. The platform’s breadth across IT service management, HR, security, and field service creates multi‑year contracts that keep the revenue engine humming, and the modest debt‑to‑equity of 0.21 ensures cash can be reinvested. The thesis rests on the continued compounding of workflow adoption across every enterprise function, which sustains both growth and cash generation.
Moat
The integrated workflow suite—spanning ITSM, HR service delivery, security operations, and field service—creates deep switching costs because customers embed ServiceNow’s process logic into core business operations. This lock‑in is reinforced by the low‑leverage balance sheet (debt‑to‑equity 0.21) that lets ServiceNow fund product innovation without diluting shareholders, and a 15% ROE that stems from pricing power in a market where few rivals can match the breadth of its platform.
Risk
The market prices ServiceNow at a P/E of 65.9, betting on sustained double‑digit growth; any slowdown below the current 20.9% revenue pace would make that multiple untenable and compress the stock sharply. Competitive pressure from other enterprise cloud platforms could erode margins, which sit at a modest 12.6% today. A miss on quarterly revenue growth or margin guidance would be the trigger that validates the bear case and forces a re‑rating.
Horizon
1-3 yr $141.12 (46-analyst consensus) — fundamentals + valuation re-rating. 5 yr $206.62 at ~14% CAGR — compounding case rests on the competitive position widening. 10 yr $306.50 if current growth sustains into durable earnings power.
Not investment advice. The Bull Rankings publishes a quantitative ranking model and accompanying analysis for general informational purposes only. Nothing on this page is a recommendation to buy, sell, or hold any security; nothing is personalized to your circumstances, risk tolerance, or tax situation. Investing carries the risk of loss — invest at your own risk and consider consulting a licensed financial professional before acting on anything you read here. See terms and methodology for full disclosures.
Position sizing · NOW
$
%
%
Shares to buy
18
Position size
$1,959
3.9% of portfolio
Stop price
$81.63
25% below $108.84
$ at risk if stopped
$489.78
budget $500.00 · 1% of portfolio
Math only — share count is floor(portfolio × risk% ÷ (price × stop%)). Doesn't account for commissions, slippage, gap risk, or position-correlation across your book. Inputs persist locally; never sent to the server. Not investment advice.
ServiceNow, Inc. (NOW): score, valuation & FAQ
ServiceNow, Inc. (NOW) is a Software - Application company that scores 79.2 out of 100 on the Bull Rankings quality-growth model — a strong reading. The score blends three pillars — quality (durable returns, healthy margins, low leverage), growth (revenue and earnings), and value (valuation versus sector peers) — into one number, refreshed daily; it is a screen, not a buy recommendation.
Its strongest graded signals are Rev (A-), D/E (B+) and PEG (B+). On valuation, NOW sits about 6% above our discounted-cash-flow fair value (i.e. the DCF flags it as rich).
Is NOW a good stock to buy?
Bull Rankings scores NOW 79.2 out of 100 on its quality-growth model, which is a strong reading. That is driven by Rev (A-), D/E (B+) and PEG (B+). A score is a quantitative screen of ServiceNow, Inc.'s fundamentals, not personalised financial advice — weigh it against your own time horizon and risk tolerance, and read the risk factors below before acting.
Why does NOW score 79.2 on Bull Rankings?
The quality-growth score blends three pillars — quality (returns on capital, margins, leverage, earnings quality), growth (revenue and earnings expansion), and value (valuation versus sector peers). NOW earns its highest marks on Rev (A-), D/E (B+) and PEG (B+). Each pillar is graded against sector-aware thresholds, then combined into the single 0–100 score.
Is NOW overvalued or undervalued?
Based on $108.84, NOW sits about 6% above our discounted-cash-flow fair value (i.e. the DCF flags it as rich). It trades at a 64.0x× P/E (graded C+). Discounted-cash-flow estimates are sensitive to growth and discount-rate assumptions, so treat this as a cross-check, not a price target.
What are the main risks of investing in NOW?
The market prices ServiceNow at a P/E of 65.9, betting on sustained double‑digit growth; any slowdown below the current 20.9% revenue pace would make that multiple untenable and compress the stock sharply. Competitive pressure from other enterprise cloud platforms could erode margins, which sit at a modest 12.6% today. A miss on quarterly revenue growth or margin guidance would be the trigger that validates the bear case and forces a re‑rating.
Bull Rankings is an automated fundamentals screen for research and education. It is not investment advice, and nothing here is a recommendation to buy or sell any security. Do your own research and consider consulting a licensed financial adviser.