What is NOW's intrinsic value?

TickerWorth's blended fair value for ServiceNow, Inc. (NOW) is $54.83 per share, versus a market price of $141.97 (159% above fair value).

Is NOW overvalued or undervalued?

On our blended fair value NOW looks overvalued vs fair value at $141.97. This is an educational estimate, not advice.

What discount rate is used for NOW?

A WACC of 9.8% and a terminal growth rate of 2.5%.

Is ServiceNow stock undervalued?

TickerWorth's fair value for ServiceNow, Inc. (NOW) is $54.83 against a market price of $141.97. Our read: 159% above fair value. This is a model estimate, not investment advice.

ServiceNow (NOW) DCF valuation and fair value

Our fair value for ServiceNow, Inc. (NOW) is $54.83, built on a 9.8% discount rate (WACC) and 2.5% terminal growth. It blends our discounted-cash-flow model with other valuation lenses. Every assumption is listed on this page with its source.

ServiceNow (NOW) insider trading

The most recent insider filing (SEC Form 4) for ServiceNow, Inc. (NOW): Fipps Paul, President, Global Customer Ops, open-market sale on 2026-08-31. The latest filings are listed on this page. A disclosure, not a signal to trade.

NOW · Intrinsic value

Is ServiceNow, Inc. (NOW) overvalued or undervalued?

Name: ServiceNow, Inc. (NOW) DCF intrinsic value
Creator: TickerWorth

ServiceNow, Inc. (NOW) trades at the delayed market price of $141.97 a share. That price already implies revenue growth of more than 25%/yr. TickerWorth's fair value is $54.83 a share (159% above fair value), as of Oct 19, 2026. It is a model estimate, and every input behind it is sourced below.

Model by Miraaj Patel · generated from a hand-researched model · Updated Oct 19, 2026 · How these pages are made

Open full NOW analysis

Is NOW overvalued?

Fair value: $54.83
Market price: $141.97
Downside to fair value: 61.4%
Verdict: 159% above fair value

Price as of 19 Oct 2026, 12:50 UTC · Prices are delayed.

Fair value against the delayed market price: 159% above fair value.

Reverse DCF: Today's price implies revenue growth of more than 25%/yr. Above about 25% a year the reverse-DCF stops being informative. It solves for revenue growth alone — holding margins, capital intensity and the forecast horizon fixed — so a price well above our cash-flow model's value has nowhere to go but growth, and the solver returns a rate the model can't reconcile. Read it as "the price implies growth we can't justify", not as a forecast.

What is NOW's TickerWorth Score?

F37/100

Scores lower than almost every company we compare it with

Compared with Technology companies in US

Its strongest point: recent price trend has been strong. Its weakest: trades above our estimate of what it's worth.

Value · 30 of 100
Cheaper than 30% of Technology companies in US
Price vs worth · 1 of 100
Quality · 52 of 100
More profitable than 52% of Technology companies in US
Financial health · 30 of 100
Financially stronger than 30% of Technology companies in US
Growth · 55 of 100
Growing faster than 55% of Technology companies in US
Momentum · 61 of 100
Outperformed 61% of Technology companies in US over the past year

Confidence: High confidence · Scored 19 Oct 2026, 12:50 UTC

Get the Undervalued Company of the Week.

Where the numbers come from

Hand-researched model

What the modeller flagged

YEAR-1 FCF IS ~66% BELOW REPORTED FCF ($1,556M modeled vs $4,636M for FY2025, $4,923M TTM, and ~$5.7B implied by the 35% FY2026 guide) — far past the 20% line, so decomposed against the FY2026 guide (~$4.1B gap): stock-based compensation at 15% of revenue (~$2.4B) is a real cost here and a non-cash add-back in reported FCF; acquired-intangible amortization (~$0.65B) and acquisition/severance costs (~$0.3B, which ServiceNow's FCF definition adds back) stay expensed; the working-capital credit is ~$0.3B against the ~$0.6-0.7B deferred-revenue float a year of 20%+ growth actually releases; and tax is charged at 21% of EBIT. Applying the same treatment to FY2025 itself gives ~$1.3B, so this is a deliberate haircut, not a forecasting error.
TERMINAL VALUE IS ~79% OF ENTERPRISE VALUE — above the 75% line. Worse than the number suggests, because the perpetuity starts from 12% growth and steps straight to 2.5%. The five explicit years carry only ~21% of the answer.
THE LENS IS HARSH ON FAST GROWERS, AND THIS ONE SITS CLOSE TO THE LINE WHERE THE SITE SAYS SO. The site flags a DCF as 'understated' when it lands below 0.35x the price on a company growing 15%+ in Year 1; this model lands at ~0.41x, so it publishes as a valuation call. Read it as one, but know that the horizon cliff above, not a single aggressive input, is most of the gap. I have NOT tuned any input to cross or avoid that threshold.
GAAP, NOT NON-GAAP. ServiceNow headlines a 31.5% operating margin; the GAAP margin this model uses is 10% for FY2026. Valuing it on the non-GAAP margin path (31.5% -> 35.5%) gives ~$89; adding management's $30B subscription target on top gives ~$97. Neither reaches today's price.
THE MARGIN PATH LEANS ON A MANAGEMENT PROMISE. 10% -> 22.5% GAAP by 2030 requires stock compensation to fall from ~15% of revenue toward ~10.5% and non-GAAP margin to add ~4pts. SBC has run 14.5-16% of revenue every year since FY2023. If it stays at 15%, Year 5 margin is ~18% and the value falls by roughly $10, to ~$44.
Y1 REVENUE MIXES GUIDANCE AND MY ESTIMATE: subscription revenue is the guided midpoint; the ~$430M of professional services is mine (ServiceNow does not guide it). It is ~2.7% of revenue, so an error there is immaterial.
Strategic investments ($2.07B) and the cash-tax benefit of employee-stock deductions (cash taxes ~12.5% of pretax income in FY2025 vs 21% modeled) are both real and both left out. Together (book value of the stakes, and a ~12.5% tax rate forever) they are worth roughly +$7.50/share; neither changes the conclusion.

NOW DCF valuation: what the price assumes

At a recent price of $141.97, ServiceNow, Inc. (NOW) trades 159% above TickerWorth's blended fair value of $54.83 per share — a discounted-cash-flow model cross-checked against peer multiples and asset value — meaning the market currently prices NOW overvalued vs our estimate of what the business is intrinsically worth. Our fair value sits below the market, an implied -61.4% move to close the gap if the business performs in line with our assumptions. This is an educational model, not a price target or a recommendation — the value moves with the inputs, which you can test yourself using the WACC slider below.

Read the full reasoning

The valuation discounts ServiceNow, Inc.'s projected free cash flows at a weighted-average cost of capital (WACC) of 9.8%, with a long-run terminal growth rate of 2.5%. About 79% of the enterprise value comes from the terminal value — the portion beyond the explicit forecast window — which is typical for a stable, cash-generative business and a reminder that small changes in the discount rate or terminal growth assumption swing the intrinsic value meaningfully.

Running the DCF in reverse — solving for the growth the current price already assumes — NOW would need sustained revenue growth of more than 25%/yr to justify today's price, against about 16.3% a year compounded in our base case. We don't quote a precise figure here, because past about 25% a year the reverse-DCF stops being informative: it solves for revenue growth alone, holding margins, capital intensity and the forecast horizon fixed, so a price well above our fair value has nowhere to go but growth. The honest reading is that the price implies growth this model can't reconcile — not that we forecast it.

Sensitivity matters more than any single number. Across a reasonable band of discount-rate assumptions, NOW's modeled DCF value ranges from about $40.41 to $82.89 per share. If that range still sits below today's price, the market is optimistic relative to the model across the whole band; if it brackets the price, the stock is roughly fairly valued on our assumptions. Use the interactive slider to see exactly where your own cost-of-capital view lands.

How to read this page: the DCF fair value is what ServiceNow, Inc. would be worth if its cash flows grow as modeled and are discounted at the stated WACC. The assumptions table shows every input and its source; the reverse-DCF shows what the market believes; the sensitivity band shows how fragile the answer is. None of this is investment advice — it is a transparent, auditable framework for forming your own view of NOW's intrinsic value. Figures update as new filings and prices come in.

Every input behind NOW's DCF

Input	Value	Source
Base-year revenueServiceNow FY2025 10-K (accession 0001373715-26-000007, filed 2026-01-29) + ServiceNow Q4/FY2025 earnings release, 8-K Ex-99.1 (accession 0001373715-26-000005, filed 2026-01-28): Total revenues FY2025 (calendar year), us-gaap:RevenueFromContractWithCustomerExcludingAssessedTax = $13,278M: subscription $12,883M + professional services $395M. +20.9% on FY2024's $10,984M, of which ~1pt was Moveworks (closed 2025-12-15) per the Q4 release footnote. UNCHANGED as the base — the DCF grows it by forecast.revenue_growth. CROSS-CHECK, H1 2026 (Q2 8-K Ex-99.1): revenue $7,757M, +23.1% on H1 2025's $6,303M; Q2 alone $3,987M, +24% (22.5% constant currency). That H1 figure already contains Veza (closed 2026-03-02) and Armis (closed 2026-04-20), which management says contribute ~125bp to FY2026 subscription growth; with Moveworks's ~100bp, ORGANIC constant-currency subscription growth is running roughly 19% — my arithmetic from the company's stated contributions, not a ServiceNow figure.	$13,278,000,000	ServiceNow FY2025 10-K (accession 0001373715-26-000007, filed 2026-01-29) + ServiceNow Q4/FY2025 earnings release, 8-K Ex-99.1 (accession 0001373715-26-000005, filed 2026-01-28): Total revenues FY2025 (calendar year), us-gaap:RevenueFromContractWithCustomerExcludingAssessedTax = $13,278M: subscription $12,883M + professional services $395M. +20.9% on FY2024's $10,984M, of which ~1pt was Moveworks (closed 2025-12-15) per the Q4 release footnote. UNCHANGED as the base — the DCF grows it by forecast.revenue_growth. CROSS-CHECK, H1 2026 (Q2 8-K Ex-99.1): revenue $7,757M, +23.1% on H1 2025's $6,303M; Q2 alone $3,987M, +24% (22.5% constant currency). That H1 figure already contains Veza (closed 2026-03-02) and Armis (closed 2026-04-20), which management says contribute ~125bp to FY2026 subscription growth; with Moveworks's ~100bp, ORGANIC constant-currency subscription growth is running roughly 19% — my arithmetic from the company's stated contributions, not a ServiceNow figure.
Base EBIT marginServiceNow FY2025 10-K (accession 0001373715-26-000007, filed 2026-01-29) + ServiceNow Q4/FY2025 earnings release, 8-K Ex-99.1 (accession 0001373715-26-000005, filed 2026-01-28): GAAP income from operations $1,824M / revenue $13,278M = 13.74% (us-gaap:OperatingIncomeLoss). GAAP, NOT the 31% non-GAAP margin ServiceNow headlines: the 17.5-point gap is stock-based compensation $1,955M (14.7% of revenue), acquired-intangible amortization $120M, business-combination costs $109M, severance $74M, contract termination $37M and an impairment $30M, per the Q4 release reconciliation. All of it stays in. Interest income ($451M) is below this line and excluded — the cash that earns it is credited in net debt instead. CROSS-CHECK, H1 2026: GAAP operating margin 8.6% ($665M / $7,757M) vs 12.8% a year earlier; Q2 alone 4.1% ($162M) vs 11.1%. The collapse is acquisition-driven and itemised in the Q2 reconciliation: intangible amortization jumped to $219M in Q2 (5.5% of revenue) from $25M, business-combination costs $75M, severance $62M, and SBC rose to 16.5% of revenue as Armis RSUs (5.9M shares) were granted. The underlying non-GAAP margin was 29.5%, flat year on year.	13.7%	ServiceNow FY2025 10-K (accession 0001373715-26-000007, filed 2026-01-29) + ServiceNow Q4/FY2025 earnings release, 8-K Ex-99.1 (accession 0001373715-26-000005, filed 2026-01-28): GAAP income from operations $1,824M / revenue $13,278M = 13.74% (us-gaap:OperatingIncomeLoss). GAAP, NOT the 31% non-GAAP margin ServiceNow headlines: the 17.5-point gap is stock-based compensation $1,955M (14.7% of revenue), acquired-intangible amortization $120M, business-combination costs $109M, severance $74M, contract termination $37M and an impairment $30M, per the Q4 release reconciliation. All of it stays in. Interest income ($451M) is below this line and excluded — the cash that earns it is credited in net debt instead. CROSS-CHECK, H1 2026: GAAP operating margin 8.6% ($665M / $7,757M) vs 12.8% a year earlier; Q2 alone 4.1% ($162M) vs 11.1%. The collapse is acquisition-driven and itemised in the Q2 reconciliation: intangible amortization jumped to $219M in Q2 (5.5% of revenue) from $25M, business-combination costs $75M, severance $62M, and SBC rose to 16.5% of revenue as Armis RSUs (5.9M shares) were granted. The underlying non-GAAP margin was 29.5%, flat year on year.
Forecast revenue growthESTIMATEAssumption — TickerWorth's 5-year explicit forecast	22% → 18% → 16% → 14% → 12%	ESTIMATEAssumption — TickerWorth's 5-year explicit forecast
Risk-free rateUS 10Y Treasury constant maturity (FRED DGS10): 5.24% on 2026-10-01, the latest published observation. House input shared by every model in this tracker.	5.2%	US 10Y Treasury constant maturity (FRED DGS10): 5.24% on 2026-10-01, the latest published observation. House input shared by every model in this tracker.
BetaYahoo Finance 5Y-monthly beta via yfinance: Published 5Y-monthly beta 0.972, used UNNORMALIZED. It is low for a high-multiple software name (CRM 1.20, ADBE 1.42 in this tracker) but I have no stated reason to override it: the window includes the 2026 software sell-off, in which ServiceNow fell from ~$193 to ~$81 (split-adjusted 52-week range), so it is not a calm-period artefact. Stated as a lever: a beta of 1.2 (CRM's) takes the value to ~$46.60; nothing near a reasonable beta closes the gap.	0.97	Yahoo Finance 5Y-monthly beta via yfinance: Published 5Y-monthly beta 0.972, used UNNORMALIZED. It is low for a high-multiple software name (CRM 1.20, ADBE 1.42 in this tracker) but I have no stated reason to override it: the window includes the 2026 software sell-off, in which ServiceNow fell from ~$193 to ~$81 (split-adjusted 52-week range), so it is not a calm-period artefact. Stated as a lever: a beta of 1.2 (CRM's) takes the value to ~$46.60; nothing near a reasonable beta closes the gap.
Terminal growthESTIMATEAssumption — house default: House default 2.5%, kept for comparability. FLAG, and it is the biggest structural fact about this valuation: Year 5 growth is still 12%, and the perpetuity drops it to 2.5% the next year. For a company growing this fast at the end of the explicit forecast, a 5-year DCF with a GDP-like terminal rate is a harsh lens — it implicitly assumes ServiceNow stops being a growth company in 2031. A 3.5% terminal rate gives ~$61.80. Must remain < WACC of 9.84%.	2.5%	ESTIMATEAssumption — house default: House default 2.5%, kept for comparability. FLAG, and it is the biggest structural fact about this valuation: Year 5 growth is still 12%, and the perpetuity drops it to 2.5% the next year. For a company growing this fast at the end of the explicit forecast, a 5-year DCF with a GDP-like terminal rate is a harsh lens — it implicitly assumes ServiceNow stops being a growth company in 2031. A 3.5% terminal rate gives ~$61.80. Must remain < WACC of 9.84%.
Diluted sharesServiceNow Q2 2026 10-Q (accession 0001373715-26-000076, filed 2026-07-23) Note 'Net Income Per Share': Q2 2026 weighted-average diluted shares 1,034,334K (basic 1,031,351K + 2,983K of awards). Was 1,046.6M a year earlier — the $2.0B ASR (18.5M shares at $107.97, completed Q1 2026) and $225M of open-market buybacks more than offset issuance. FLAG: 46.7M awards were ANTI-DILUTIVE in Q2 and excluded (the Armis grants pushed RSUs outstanding to 46.8M); at today's higher price more would count, and management guides Q3 diluted shares to '1.05' billion. Using 1.05B would lower the value by ~$0.80/share. 10-Q cover: ~1,034M shares outstanding.	1,034M	ServiceNow Q2 2026 10-Q (accession 0001373715-26-000076, filed 2026-07-23) Note 'Net Income Per Share': Q2 2026 weighted-average diluted shares 1,034,334K (basic 1,031,351K + 2,983K of awards). Was 1,046.6M a year earlier — the $2.0B ASR (18.5M shares at $107.97, completed Q1 2026) and $225M of open-market buybacks more than offset issuance. FLAG: 46.7M awards were ANTI-DILUTIVE in Q2 and excluded (the Armis grants pushed RSUs outstanding to 46.8M); at today's higher price more would count, and management guides Q3 diluted shares to '1.05' billion. Using 1.05B would lower the value by ~$0.80/share. 10-Q cover: ~1,034M shares outstanding.
Market priceDelayed quote · as of 2026-10-19 12:50 UTC	$141.97	Delayed quote · as of 2026-10-19 12:50 UTC

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What does ServiceNow, Inc. do?

What does it do?

ServiceNow, Inc. provides cloud-based solution for digital workflows in the North America, Brazil, Europe, the Middle East and Africa, Asia Pacific, and internationally. It operates in the Software - Application industry (Technology sector), headquartered in United States. The company employs roughly 29,187 people.

How does it make money?

The business turns $14.7B in annual revenue into profit. Out of every $100 of sales, about $4 is left as operating profit (operating margin of 4.1%), after a 75% gross margin on the products/services it sells. After all costs, taxes and interest, 11.3% of revenue becomes bottom-line net profit.

Is it financially healthy?

Financially it looks mixed: carries modest debt (0.7× equity), may struggle to cover its short-term bills (0.7× current ratio), and is currently profitable.

Who at NOW filed insider trades?

Recent insider filings for ServiceNow, Inc.
Date	Insider	Relationship	What happened	Value	Filing
31 Aug 2026	Fipps Paul	President, Global Customer Ops	Open-market sale	$300,777.14	Form 4 for Fipps Paul (opens sec.gov in a new tab)
28 Aug 2026	Canney Jacqueline P	Chief People & AI Enblmt. Off.	Open-market sale	$1,082,886.00	Form 4 for Canney Jacqueline P (opens sec.gov in a new tab)
27 Aug 2026	Chamberlain Paul Edward	Director	Open-market sale	$365,851.08	Form 4 for Chamberlain Paul Edward (opens sec.gov in a new tab)
17 Aug 2026	McDermott William R	Director, Chairman & CEO	Option exercise	—	Form 4 for McDermott William R (opens sec.gov in a new tab)
17 Aug 2026	McDermott William R	Director, Chairman & CEO	Shares withheld (tax)	$263,177.20	Form 4 for McDermott William R (opens sec.gov in a new tab)
17 Aug 2026	Canney Jacqueline P	Chief People & AI Enblmt. Off.	Option exercise	—	Form 4 for Canney Jacqueline P (opens sec.gov in a new tab)

A disclosure, not a signal to trade. Source: SEC EDGAR (Form 4). Older filings and the 90-day buying-and-selling read are part of Pro. See plans

Common questions

What is NOW's intrinsic value?
TickerWorth's blended fair value for ServiceNow, Inc. (NOW) is $54.83 per share, versus a market price of $141.97 (159% above fair value).
Is NOW overvalued or undervalued?
On our blended fair value NOW looks overvalued vs fair value at $141.97. This is an educational estimate, not advice.
What discount rate is used for NOW?
A WACC of 9.8% and a terminal growth rate of 2.5%.
Is ServiceNow stock undervalued?
TickerWorth's fair value for ServiceNow, Inc. (NOW) is $54.83 against a market price of $141.97. Our read: 159% above fair value. This is a model estimate, not investment advice.
ServiceNow (NOW) DCF valuation and fair value
Our fair value for ServiceNow, Inc. (NOW) is $54.83, built on a 9.8% discount rate (WACC) and 2.5% terminal growth. It blends our discounted-cash-flow model with other valuation lenses. Every assumption is listed on this page with its source.
What growth is priced into ServiceNow stock?
Today's price implies revenue growth of more than 25%/yr. Above about 25% a year the reverse-DCF stops being informative. It solves for revenue growth alone — holding margins, capital intensity and the forecast horizon fixed — so a price well above our cash-flow model's value has nowhere to go but growth, and the solver returns a rate the model can't reconcile. Read it as "the price implies growth we can't justify", not as a forecast. This is a reverse DCF: it holds our cash-flow model's other inputs and solves for the revenue growth that makes the model equal today's price of $141.97. A model estimate, not investment advice.
ServiceNow (NOW) insider trading
The most recent insider filing (SEC Form 4) for ServiceNow, Inc. (NOW): Fipps Paul, President, Global Customer Ops, open-market sale on 2026-08-31. The latest filings are listed on this page. A disclosure, not a signal to trade.