ServiceNow, Inc. (NOW) DCF Valuation
Transparent DCF models put ServiceNow, Inc. (NOW)'s fair value in a range of $52.42 – $122.26 — the low end is TGM's conservative base case (5% FCF growth, 10% discount), the high end the analyst consensus (FMP). Today's price of $106.97 sits within that range — roughly fairly valued on these assumptions.
Reverse DCF: at today's $106.97, the market is pricing in roughly +14.9%/yr free-cash-flow growth over the next decade (at a 10% required return) — versus its actual 5-year FCF CAGR of +24.2%. The price assumes a slowdown from its track record — a potential value signal if growth holds.
Current Price
$106.97
Fair-Value Range
$52.42 – $122.26
Market-Implied Growth
+14.9%/yr
vs +24.2% 5Y actual
NOW DCF Fair Value Calculator
Edit the assumptions to see how they change the estimated fair value. Illustrative model — not investment advice. Defaults to a conservative base case; the analyst (FMP) DCF, where available, is shown as a reference below.
Base inputs: FCF $3.2B · 1.03B shares · net cash $1.3B
Estimated Fair Value
$52.42
-51.0% vs $106.97
Sensitivity — fair value by discount rate × terminal growth
How the estimated fair value shifts with the discount rate (WACC) and terminal growth, holding your 5.0%/yr FCF growth and 10-year horizon fixed. Green = above today's $106.97; red = below. Your current case is outlined.
| WACC ↓ / Terminal → | 1.50% | 2.00% | 2.50% | 3.00% | 3.50% |
|---|---|---|---|---|---|
| 8.0% | $64.84 | $68.10 | $71.95 | $76.57 | $82.22 |
| 9.0% | $55.87 | $58.10 | $60.67 | $63.67 | $67.21 |
| 10.0% | $49.04 | $50.63 | $52.42 | $54.48 | $56.84 |
| 11.0% | $43.67 | $44.84 | $46.13 | $47.59 | $49.25 |
| 12.0% | $39.35 | $40.22 | $41.18 | $42.26 | $43.45 |
About ServiceNow, Inc.
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), designed to integrate and manage both physical and cloud-based IT infrastructure; and IT Asset Management (ITAM) for automating asset lifecycles. Its Security Operations solution facilitates seamless integration between internal systems and third-party security tools. Beyond IT, the company provides solutions for Governance, Risk, and Compliance (GRC) to enhance organizational resilience, along with tools for Human Resources, Legal, and general workplace service delivery, including dedicated safe workplace applications. Other specialized applications cover Customer Service Management (CSM) and Field Service Management (FSM). To further extend functionality, ServiceNow offers App Engine for custom development and IntegrationHub to connect workflows across various applications. The company also provides a range of professional services, industry-specific solutions, and comprehensive customer support. ServiceNow's diverse client base spans critical sectors such as government, financial services, healthcare, telecommunications, manufacturing, and education, alongside various IT services, technology, oil and gas, and consumer product industries. The company reaches these customers through a combination of its direct sales force and a network of resale partners. Notably, a strategic alliance with Celonis assists clients in pinpointing and prioritizing business processes ripe for automation. Established in 2004 and headquartered in Santa Clara, California, the company originally operated as Service-now.com before rebranding to ServiceNow, Inc. in May 2012.
- Sector
- Technology
- Industry
- Software - Application
- CEO
- William R. McDermott