Make sense of ServiceNow (NOW) stock
An independent, educational project that explains what moves ServiceNow (NOW) and what today’s price implies about the market’s expectations — using only public data. Not investment advice, and not affiliated with ServiceNow.
Price modeler
Back out the growth and margins needed to justify today's price, and move the assumptions yourself.
You’re here
Daily move →
How much of a day's move is the market and sector versus company-specific.
Valuation context →
Where NOW's multiples sit versus its own history and a few peers.
Move the sliders to adjust the assumptions and build a scenario.
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Your assumptions
Benchmarks are reference points from public filings or convention — not targets, and not advice. Fundamentals as of FY2025 results / latest 10-Q (approx.).
Recent NOW growth ~20–22% YoY (FY25 ~21%); cRPO growth ~22%.
Convention: long-run GDP-like, ~2–4%.
NOW FY25 FCF margin ~31%; management targets ~35%.
Convention: large-cap software, ~8–10%.
Convention: at or below long-run GDP, ~2–3%.
How the value breaks down
- PV of 10-yr cash flows
- $62.0B
- PV of terminal value
- $100.0B
- Enterprise value
- $162.1B
- + Net cash
- $7.9B
- Equity value
- $170.0B
- ÷ Shares (post-split)
- 1.03B
Projected revenue & free cash flow
Implied 10-year path from your assumptions, in billions of USD. Revenue compounds at a growth rate that fades to your terminal rate; FCF margin ramps to your terminal margin.
How the model works
Revenue grows from the trailing-twelve-month base; the growth rate fades linearly from your Year-1 rate to your terminal rate over 10 years. The free-cash-flow margin ramps linearly from today’s level to your terminal margin. Each year’s free cash flow is discounted at your chosen WACC, a Gordon-growth terminal value caps off year 10, and net cash is added to get equity value. We work in enterprise-value terms (which are unaffected by the December 2025 5-for-1 stock split) and convert to a per-share figure only at the end, using the current post-split share count.
Figures derive from public SEC filings and public market data. Prices are delayed. This is an educational tool, not investment advice, and is not affiliated with ServiceNow.