TGM's two-stage DCF values ServiceNow, Inc. (NOW) between $68.92 and $116.91 depending on assumptions, with a base case of $90.24. Growth is taken from the company's own record (blend of 5-year revenue and FCF growth (capped at 18%)), fading to 2.5% long-run; the discount rate (8.9%) reflects its beta.
What would today's price require?
$98.78 is justified only if free cash flow grows about +20.3% a year (fading to 2.5% long-run) at a 8.9% required return — slower than the company has actually grown.
| Scenario | FCF growth (fading to 2.5%) | Discount | Value / share |
|---|---|---|---|
| Conservative | 15.0%/yr | 9.9% | $68.92 |
| Base case | 18.0%/yr | 8.9% | $90.24 |
| Optimistic | 20.0%/yr | 7.9% | $116.91 |
| Third-party model estimate (FMP) | independent reference · retrieved Jul 26, 2026 · assumptions not provided | $113.99 | |
The FMP figure is a third-party point estimate. Its cash-flow forecast, discount rate, terminal growth, and valuation date are not included in the stored response, so TGMCharts presents it only as a reference—not as an intrinsic-value conclusion or price target.
Current Price
$98.78
Market-Implied Growth
+20.3%/yr
vs +24.6% 5Y actual
Model Scenario Range
$68.92 – $116.91
model output — not a price target
Edit the assumptions to see how they change the estimated fair value. Opens seeded with TGM's data-driven base case for NOW (growth from its own 5-year record, discount from its beta), so the sandbox starts where the scenarios above leave off. Illustrative model — not investment advice.
Base inputs: FCF $3.1B · 1.03B shares · net cash $1.3B
Estimated Fair Value
$90.24
-8.6% vs $98.78
How the estimated fair value shifts with the discount rate (WACC) and terminal growth, holding your 18.0%/yr FCF growth and 10-year horizon fixed. Green = above today's $98.78; red = below. Your current case is outlined.
| WACC ↓ / Terminal → | 1.50% | 2.00% | 2.50% | 3.00% | 3.50% |
|---|---|---|---|---|---|
| 6.9% | $112 | $122 | $134 | $149 | $169 |
| 7.9% | $93.41 | $100 | $108 | $118 | $129 |
| 8.9% | $79.95 | $84.72 | $90.24 | $96.69 | $104 |
| 9.9% | $69.73 | $73.28 | $77.30 | $81.90 | $87.22 |
| 10.9% | $61.72 | $64.44 | $67.48 | $70.90 | $74.78 |
