ServiceNow, Inc. (NOW) Stock Analysis — Fair Value, Risk & Moat Rating
NYQ · Technology · Software - Application
Is ServiceNow, Inc. a safe investment right now?
ServiceNow, Inc.'s Altman Z-Score of 6.03 places it in the safe zone. Our fair value estimate is $107.20 (Watch Zone). Moat rating: 3.4/5 stars.
Could ServiceNow, Inc. go bankrupt? Altman Z-Score analysis
Z-Score of 6.03 is above 3.0, indicating the company is financially healthy by this metric.
- Below 1.8 — Distress Zone (high bankruptcy risk)
- 1.8 to 3.0 — Gray Zone (elevated uncertainty)
- Above 3.0 — Safe Zone (financially healthy)
What drives NOW's Z-Score?
| Component | Formula | Value | Weight | Contribution |
|---|---|---|---|---|
| A · Working Capital / Total Assets | WC / TA | 0.0011 | 1.2 | 0.0 |
| B · Retained Earnings / Total Assets | RE / TA | 0.2013 | 1.4 | 0.28 |
| C · EBIT / Total Assets | EBIT / TA | 0.0877 | 3.3 | 0.29 |
| D · Market Cap / Total Liabilities | MCap / TL | 8.2462 | 0.6 | 4.95 |
| E · Revenue / Total Assets | Rev / TA | 0.5099 | 1.0 | 0.51 |
How has NOW's financial health changed over time?
| Year | Z-Score | Zone |
|---|---|---|
| 2022 | 8.55 | Safe |
| 2023 | 7.48 | Safe |
| 2024 | 7.12 | Safe |
| 2025 | 6.03 | Safe |
Source: Calculated from NOW's latest 10-K filing on SEC EDGAR.
What is ServiceNow, Inc. actually worth?
How we calculated this
| Input | Value | Source |
|---|---|---|
| Predicted EPS (α) | $2.68 | Proprietary blend of reported actuals + analyst consensus, weighted by α |
| Last Year EPS | $1.67 | Annual report (SEC EDGAR) |
| Analyst Consensus EPS (This Year) | $4.19 | 43 analysts consensus |
| Trailing P/E | 61.7x | Current market pricing |
| Fair P/E (β discount) | 40.0x | Trailing PE adjusted by value discount factor β, hard-capped |
| Earnings Trend (γ) | Accelerating | Directional signal: predicted vs trailing EPS |
Wall Street Reference: Analyst consensus target price is $165.02 (43 analysts). This is shown for reference only and is not used in our valuation model.
Source: Earnings data from SEC EDGAR filings. Market data via Yahoo Finance.
Does ServiceNow, Inc. have a durable competitive advantage?
Moat rating: 3.4/5.
What makes up NOW's moat score?
ROIC Stability
ROIC variability over the past decade. Score: 4/5.
Gross Margin Trend
Gross margin trajectory over the past decade. Score: 3/5.
Switching Costs
Estimated customer lock-in based on margin level. Score: 3/5.
How stable is NOW's return on invested capital?
| Year | ROIC | Trend |
|---|---|---|
| 2022 | 5.5% | — |
| 2023 | 8.4% | Rising |
| 2024 | 15.9% | Rising |
| 2025 | 15.8% | Stable |
Source: ROIC calculated from SEC EDGAR filings.
Is ServiceNow, Inc.'s dividend safe?
ServiceNow, Inc.'s key financial metrics
| Metric | Latest | 1Y Ago | 3Y Ago | Trend |
|---|---|---|---|---|
| Revenue | $13.3B | $11.0B | $7.2B | Rising |
| Net Income | $1.7B | $1.4B | $0.3B | Rising |
| Free Cash Flow | $4.5B | $3.4B | $2.2B | Rising |
| Gross Margin | 77.5% | 79.2% | 78.3% | Stable |
Recent events that affect our NOW analysis
NOW analyst consensus: 89% bullish (42 of 47 analysts)
8 Strong Buy, 34 Buy, 4 Hold, 1 Sell, 0 Strong Sell. Consensus target: $165.02 (60.1% upside). Compare with our independent Fair Value: $107.20.
NOW beat EPS estimates by 0.4%
Reported EPS: $0.97 vs estimate $0.97. Earnings strength supports our Fair Value of $107.20 (4.0% above current price).
NOW filed 8-K (material event)
8-K filings disclose material events — acquisitions, leadership changes, or guidance revisions that may affect valuation. View on SEC EDGAR →
NOW filed 8-K (material event)
8-K filings disclose material events — acquisitions, leadership changes, or guidance revisions that may affect valuation. View on SEC EDGAR →
NOW filed 8-K (material event)
8-K filings disclose material events — acquisitions, leadership changes, or guidance revisions that may affect valuation. View on SEC EDGAR →
NOW filed 8-K (material event)
8-K filings disclose material events — acquisitions, leadership changes, or guidance revisions that may affect valuation. View on SEC EDGAR →
NOW filed annual report (10-K)
Annual filing with full-year financials. Our Altman Z-Score, Moat, and Fair Value models are derived from this data. View on SEC EDGAR →
NOW beat EPS estimates by 4.0%
Reported EPS: $0.92 vs estimate $0.89. Earnings strength supports our Fair Value of $107.20 (4.0% above current price).
NOW filed 8-K (material event)
8-K filings disclose material events — acquisitions, leadership changes, or guidance revisions that may affect valuation. View on SEC EDGAR →
NOW filed 8-K (material event)
8-K filings disclose material events — acquisitions, leadership changes, or guidance revisions that may affect valuation. View on SEC EDGAR →
NOW stock split 5:1
Stock splits don't change fundamental value, but they can affect per-share metrics. Our models automatically adjust for splits.
NOW filed 8-K (material event)
8-K filings disclose material events — acquisitions, leadership changes, or guidance revisions that may affect valuation. View on SEC EDGAR →
NOW filed 8-K (material event)
8-K filings disclose material events — acquisitions, leadership changes, or guidance revisions that may affect valuation. View on SEC EDGAR →
NOW filed quarterly report (10-Q)
Quarterly update with interim financials. May signal changes to earnings trajectory and balance sheet health. View on SEC EDGAR →
NOW beat EPS estimates by 13.0%
Reported EPS: $0.96 vs estimate $0.85. Earnings strength supports our Fair Value of $107.20 (4.0% above current price).
NOW filed 8-K (material event)
8-K filings disclose material events — acquisitions, leadership changes, or guidance revisions that may affect valuation. View on SEC EDGAR →
NOW filed 8-K (material event)
8-K filings disclose material events — acquisitions, leadership changes, or guidance revisions that may affect valuation. View on SEC EDGAR →
NOW filed quarterly report (10-Q)
Quarterly update with interim financials. May signal changes to earnings trajectory and balance sheet health. View on SEC EDGAR →
NOW beat EPS estimates by 14.6%
Reported EPS: $0.82 vs estimate $0.71. Earnings strength supports our Fair Value of $107.20 (4.0% above current price).
NOW filed 8-K (material event)
8-K filings disclose material events — acquisitions, leadership changes, or guidance revisions that may affect valuation. View on SEC EDGAR →
NOW filed 8-K (material event)
8-K filings disclose material events — acquisitions, leadership changes, or guidance revisions that may affect valuation. View on SEC EDGAR →
NOW filed 8-K (material event)
8-K filings disclose material events — acquisitions, leadership changes, or guidance revisions that may affect valuation. View on SEC EDGAR →
NOW beat EPS estimates by 5.4%
Reported EPS: $0.81 vs estimate $0.77. Earnings strength supports our Fair Value of $107.20 (4.0% above current price).
NOW filed quarterly report (10-Q)
Quarterly update with interim financials. May signal changes to earnings trajectory and balance sheet health. View on SEC EDGAR →
NOW filed 8-K (material event)
8-K filings disclose material events — acquisitions, leadership changes, or guidance revisions that may affect valuation. View on SEC EDGAR →
NOW filed 8-K (material event)
8-K filings disclose material events — acquisitions, leadership changes, or guidance revisions that may affect valuation. View on SEC EDGAR →
NOW filed 8-K (material event)
8-K filings disclose material events — acquisitions, leadership changes, or guidance revisions that may affect valuation. View on SEC EDGAR →
NOW filed annual report (10-K)
Annual filing with full-year financials. Our Altman Z-Score, Moat, and Fair Value models are derived from this data. View on SEC EDGAR →
NOW beat EPS estimates by 0.2%
Reported EPS: $0.73 vs estimate $0.73. Earnings strength supports our Fair Value of $107.20 (4.0% above current price).
NOW filed 8-K (material event)
8-K filings disclose material events — acquisitions, leadership changes, or guidance revisions that may affect valuation. View on SEC EDGAR →
Common questions about ServiceNow, Inc.
What is ServiceNow, Inc. stock price today?
ServiceNow, Inc. (NOW) stock price is $103.07 as of the latest market close, traded on the NYSE exchange.
What does ServiceNow, Inc. do?
ServiceNow, Inc. provides cloud-based solution for digital workflows in the North America, Europe, the Middle East and Africa, Asia Pacific, and internationally. It provides asset management, integrated risk management, IT service management, Operational Technology management, Security Operations, strategic portfolio management, IT operations management products; customer service management product; field service management applications; and sales and order management services.
What is ServiceNow, Inc. market cap?
ServiceNow, Inc. has a market capitalization of $107.81B, classifying it as a large-cap stock in the Technology sector.
What sector and industry is NOW in?
ServiceNow, Inc. operates in the Technology sector, specifically within the Software - Application industry. It trades on the NYSE under the ticker symbol NOW.
Is NOW stock overvalued or undervalued?
Based on our valuation model, ServiceNow, Inc. trades 3.9% below our fair value estimate — potentially undervalued.
- FairValueLabs Fair Value: $107.20
- Current Price: $103.07
- Valuation Zone: Watch Zone
What is NOW stock forecast and analyst target price?
Based on 43 Wall Street analysts, the consensus price target for ServiceNow, Inc. is $165.02, implying upside of 60.1% from the current price.
- Analyst High Target: $260.00
- Analyst Low Target: $100.00
Note: Analyst targets are shown for reference and are not used in our valuation model.
Is ServiceNow, Inc. revenue and earnings growing?
Here are the analyst consensus growth estimates for ServiceNow, Inc.:
- Revenue growth (current year est.): 20.4%
- EPS growth (current year est.): 19.4%
- Revenue growth (next year est.): 18.4%
- EPS growth (next year est.): 19.9%
What are ServiceNow, Inc.'s key financial metrics?
| Metric | Latest | Trend |
|---|---|---|
| Revenue | $13.3B | Rising |
| Net Income | $1.7B | Rising |
| Free Cash Flow | $4.5B | Rising |
| Gross Margin | 77.5% | Stable |
What is NOW's P/E ratio?
The price-to-earnings ratio measures how much investors pay per dollar of earnings:
- Trailing P/E (last 12 months): 61.7x
- Forward P/E (next 12 months est.): 20.5x
- FairValueLabs Fair P/E: 40.0x
How volatile is NOW stock?
ServiceNow, Inc. has a beta of 1.00, meaning it is roughly in line with overall market volatility. A beta above 1.0 indicates higher price swings relative to the S&P 500, while below 1.0 suggests more stability.
How much cash and debt does ServiceNow, Inc. have?
ServiceNow, Inc.'s balance sheet shows:
- Total Cash: $6.28B
- Total Debt: $2.40B
- Net Cash Position: $3.88B
A positive net cash position means the company holds more cash than debt, reducing financial risk.
What is ServiceNow, Inc.'s free cash flow?
ServiceNow, Inc. generated $4.95B in trailing twelve-month free cash flow (from $5.44B in operating cash flow). Free cash flow represents the cash available for dividends, buybacks, and debt reduction after all capital expenditures.
Does ServiceNow, Inc. pay a dividend?
ServiceNow, Inc. does not currently pay a regular dividend to shareholders. The company may be reinvesting all profits back into growth, or it may have suspended its dividend.
Is ServiceNow, Inc. at risk of going bankrupt?
ServiceNow, Inc.'s Altman Z-Score is 6.03, placing it in the safe zone (above 3.0) — bankruptcy risk is low. The Z-Score uses five balance sheet ratios to predict bankruptcy probability within two years.
Does ServiceNow, Inc. have a durable competitive advantage?
ServiceNow, Inc. scores 3.4/5 stars (Narrow moat) in our moat analysis:
- ROIC Stability: 4/5
- Gross Margin Trend: 3/5
- Switching Costs: 3/5
A score above 3.5 suggests meaningful pricing power and a defensible market position.
What is NOW's return on equity (ROE)?
ServiceNow, Inc.'s return on equity is 15.5%. ROE measures how efficiently a company generates profits from shareholder equity. An ROE above 15% is generally considered strong, while below 10% may signal inefficiency.
How do I buy NOW stock?
NOW shares can be purchased through any brokerage account that provides access to the NYSE. Common steps:
- Open an account with a broker (e.g., Fidelity, Schwab, Interactive Brokers)
- Search for ticker symbol NOW
- Place a market or limit order for your desired number of shares
This is not investment advice. Always do your own research before buying any stock.
Is NOW a value stock or speculative?
FairValueLabs classifies ServiceNow, Inc. as Value-Speculation. It has some value characteristics but carries elevated risk factors that make it speculative. Extra due diligence is recommended.
Who is the CEO of ServiceNow, Inc.?
The current CEO of ServiceNow, Inc. is Mr. William R. McDermott.
What is NOW's earnings per share (EPS)?
Earnings per share measures the company's profit allocated to each outstanding share:
- Trailing EPS (last 12 months): $1.67
- Forward EPS (next 12 months est.): $5.02
- Analyst consensus EPS (this year): $4.19
- Analyst consensus EPS (next year): $5.02
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FairValueLabs Disclaimer
All valuations, scores, ratings, and classifications on this page are produced by the FairValueLabs internal valuation system. They do not represent actual market value, guaranteed outcomes, or professional investment advice. These are analytical estimates for educational and research purposes only.
This is not financial advice. All data is sourced from SEC EDGAR public filings. Always consult a qualified financial advisor before making investment decisions.
Last updated: Apr 22, 2026. Data sources: SEC EDGAR (financial statements), Yahoo Finance (market data, analyst consensus). Data may not reflect the most recent quarter.
NOW analysis methodology: How we calculate fair value, Z-Scores, and moat ratings