NYSE · Technology

ServiceNow, Inc.

NOW · Software - Application

$92.52

▲ 1.35 (1.49%)

Data cached · refreshes every 10 min

Mr. Market is currently offering ServiceNow, Inc. at $92.52.

The business passes only 3 of 7 of Graham's defensive criteria — well below his required standard.

Overall Grade

Defensive

Enterprising

Profitability A

Gross Profit Margin 77.5%

Operating Margin 13.7%

Net Income Margin 13.2%

Fin. Health C

Years to Pay Off Debt 1.4 yrs

Working Capital vs Long-Term Debt -$1.5B

Working Capital $28M

Valuation F

Margin of Safety 0.0%

Price-to-Book 7.36x

Cash Flow C

Free Cash Flow $4.5B

CapEx % of Net Income 52.1%

Owner Earnings $3.4B

3/7

Graham Score

Speculative

Defensive — Graham's strict criteria (P/B, P/E, dividends, stability) · Enterprising — Profitability & cash flow focused, accepts higher valuations for quality

Market Data

Market Cap $95.4B

Enterprise Value $91.3B

P/E (TTM) 55.07

Dividend Yield N/A

Exchange NYSE

Key Margins

Gross Profit 77.5%

Operating Margin 13.7%

Net Margin 13.2%

Company Info

Sector Technology

Industry Software - Application

Employees 29187

Country United States

Visit website

📖

Full Graham Analysis

Mr. Market is currently offering ServiceNow, Inc. at $92.52.

The business passes only 3 of 7 of Graham's defensive criteria — well below his required standard.

At $92.52, the stock trades at a 326% premium to its Graham Number of $21.73. Graham would consider this price speculative.

There is no margin of safety at the current price. Graham would advise patience and waiting for a better entry point.

Negative NCAV — liabilities exceed current assets. Common in capital-return businesses (buybacks, debt-funded dividends) and capital-intensive industries. Not automatically a warning sign..

Conclusion: By Graham's standards, this stock is speculative at its current price. The intelligent investor would look elsewhere or wait.

About ServiceNow, Inc.

ServiceNow, Inc. provides cloud-based solution for digital workflows in the North America, Europe, the Middle East and Africa, Asia Pacific, and internationally. The company 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. It also offers human resources delivery; legal and contract operations; workplace service delivery products; app engine product; automation engine; platform privacy and security product; and source-to-pay operations. In addition, the company provides RaptorDB, a database built to manage workloads at scale; ServiceNow Impact that provides customers with software tools, guided plans, and AI-driven recommendations; customer support; and workflow data fabric. It serves government, financial services, healthcare and life science, manufacturing, Public Sector, retail, technology, and Telecom sectors through service providers and resale partners. The company has a strategic collaboration with Cohesity, Inc. to develop, operate, and safeguard autonomous AI agents and data with enterprise-grade reliability. The company was formerly known as Service-now.com and changed its name to ServiceNow, Inc. in May 2012. ServiceNow, Inc. was founded in 2004 and is headquartered in Santa Clara, California.

Showing Key Metrics

Income Highlights

Metric	2025	2024	2023	2022	2021
Gross Profit %	77.5% ▼	79.2%	78.6%	78.3%	N/A
Operating Margin %	13.7% ▲	12.4%	8.5%	4.9%	N/A
Net Income %	13.2% ▲	13.0%	19.3%	4.5%	N/A
Diluted EPS	1.67 ▲	1.37	1.68	0.32	N/A

Balance Sheet Highlights

Metric	2025	2024	2023	2022	2021
Total Assets	$26.0B	$20.4B	$17.4B	$13.3B	N/A
Total Debt	$2.4B ↑	$2.3B	$2.3B	$2.2B	N/A
Working Capital	$28M ▼	$829M	$412M	$649M	N/A
Years to Pay Debt	1.37	1.60	1.32	6.87	N/A

Cash Flow Highlights

Metric	2025	2024	2023	2022	2021
Free Cash Flow	$4.5B ▲	$3.4B	$2.7B	$2.2B	N/A
Owner Earnings	$3.4B	$2.9B	$3.0B	$1.3B	N/A
CapEx % of Net Income	52.1%	62.6%	40.3%	169.2%	N/A

Income Statement

	2025	2024	2023	2022	2021
Tax Rate For Calcs	0	0	0	0
Normalized EBITDA	3,022,000	2,325,000	1,324,000	788,000
Total Unusual Items					-3,000
Total Unusual Items Excluding Goodwill					-3,000
Net Income From Continuing Operation Net Minority Interest	1,748,000	1,425,000	1,731,000	325,000
Reconciled Depreciation	738,000	564,000	562,000	433,000
Reconciled Cost Of Revenue	2,983,000	2,287,000	1,921,000	1,573,000
EBITDA	3,022,000	2,325,000	1,324,000	788,000
EBIT	2,284,000	1,761,000	762,000	355,000
Net Interest Income	428,000	396,000	302,000	82,000
Interest Expense	23,000	23,000	24,000	27,000
Interest Income	451,000	419,000	302,000	82,000
Normalized Income	1,748,000	1,425,000	1,731,000	325,000
Net Income From Continuing And Discontinued Operation	1,748,000	1,425,000	1,731,000	325,000
Total Expenses	11,454,000	9,620,000	8,209,000	6,890,000
Total Operating Income As Reported	1,824,000	1,364,000	762,000	355,000
Diluted Average Shares	1,046,691	1,040,000	1,030,000	1,020,000
Basic Average Shares	1,036,740	1,030,000	1,020,000	1,005,000
Diluted EPS	0	0	0	0
Basic EPS	0	0	0	0
Diluted NI Availto Com Stockholders	1,748,000	1,425,000	1,731,000	325,000
Net Income Common Stockholders	1,748,000	1,425,000	1,731,000	325,000
Net Income	1,748,000	1,425,000	1,731,000	325,000
Net Income Including Noncontrolling Interests	1,748,000	1,425,000	1,731,000	325,000
Net Income Continuous Operations	1,748,000	1,425,000	1,731,000	325,000
Tax Provision	513,000	313,000	-723,000	74,000
Pretax Income	2,261,000	1,738,000	1,008,000	399,000
Other Income Expense	9,000	-22,000	-56,000	-38,000
Other Non Operating Income Expenses	9,000	-22,000	-56,000	-38,000
Special Income Charges					-3,000
Other Special Charges					3,000
Net Non Operating Interest Income Expense	428,000	396,000	302,000	82,000
Interest Expense Non Operating	23,000	23,000	24,000	27,000
Interest Income Non Operating	451,000	419,000	302,000	82,000
Operating Income	1,824,000	1,364,000	762,000	355,000
Operating Expense	8,471,000	7,333,000	6,288,000	5,317,000
Research And Development	2,960,000	2,543,000	2,124,000	1,768,000
Selling General And Administration	5,511,000	4,790,000	4,164,000	3,549,000
Selling And Marketing Expense	4,388,000	3,854,000	3,301,000	2,814,000
General And Administrative Expense	1,123,000	936,000	863,000	735,000
Other Gand A	1,123,000	936,000	863,000	735,000
Gross Profit	10,295,000	8,697,000	7,050,000	5,672,000
Cost Of Revenue	2,983,000	2,287,000	1,921,000	1,573,000
Total Revenue	13,278,000	10,984,000	8,971,000	7,245,000
Operating Revenue	13,278,000	10,984,000	8,971,000	7,245,000

Balance Sheet

	2025	2024	2023	2022	2021
Treasury Shares Number	18,498	8,320	4,475
Ordinary Shares Number	1,047,278	1,032,435	1,023,620	1,014,410
Share Issued	1,065,776	1,040,755	1,028,095	1,014,410
Net Debt				16,000
Total Debt	2,403,000	2,278,000	2,284,000	2,232,000
Tangible Book Value	8,265,000	8,127,000	6,173,000	3,976,000
Invested Capital	14,455,000	11,098,000	9,116,000	6,518,000
Working Capital	28,000	829,000	412,000	649,000
Net Tangible Assets	8,265,000	8,127,000	6,173,000	3,976,000
Capital Lease Obligations	912,000	789,000	796,000	746,000
Common Stock Equity	12,964,000	9,609,000	7,628,000	5,032,000
Total Capitalization	14,455,000	11,098,000	9,116,000	6,518,000
Total Equity Gross Minority Interest	12,964,000	9,609,000	7,628,000	5,032,000
Stockholders Equity	12,964,000	9,609,000	7,628,000	5,032,000
Gains Losses Not Affecting Retained Earnings	19,000	-68,000	-37,000	-102,000
Other Equity Adjustments	19,000	-68,000	-37,000	-102,000
Treasury Stock	3,045,000	1,219,000	535,000	0
Retained Earnings	5,242,000	3,494,000	2,069,000	338,000
Additional Paid In Capital	10,747,000	7,401,000	6,131,000	4,796,000
Capital Stock	1,000	1,000	0	0
Common Stock	1,000	1,000	0	0
Total Liabilities Net Minority Interest	13,074,000	10,774,000	9,759,000	8,267,000
Total Non Current Liabilities Net Minority Interest	2,631,000	2,416,000	2,394,000	2,262,000
Other Non Current Liabilities	220,000	145,000	118,000	56,000
Non Current Deferred Liabilities	120,000	95,000	81,000	70,000
Non Current Deferred Revenue	120,000	95,000	81,000	70,000
Long Term Debt And Capital Lease Obligation	2,291,000	2,176,000	2,195,000	2,136,000
Long Term Capital Lease Obligation	800,000	687,000	707,000	650,000
Long Term Debt	1,491,000	1,489,000	1,488,000	1,486,000
Current Liabilities	10,443,000	8,358,000	7,365,000	6,005,000
Other Current Liabilities	571,000	311,000	425,000	226,000
Current Deferred Liabilities	8,314,000	6,819,000	5,785,000	4,660,000
Current Deferred Revenue	8,314,000	6,819,000	5,785,000	4,660,000
Current Debt And Capital Lease Obligation	112,000	102,000	89,000	96,000
Current Capital Lease Obligation	112,000	102,000	89,000	96,000
Current Debt					92,000
Current Notes Payable				0	92,000
Pensionand Other Post Retirement Benefit Plans Current	220,000	196,000	167,000	150,000
Payables And Accrued Expenses	1,226,000	930,000	899,000	873,000
Current Accrued Expenses	827,000	700,000	650,000	490,000
Payables	399,000	230,000	249,000	383,000
Total Tax Payable	195,000	162,000	123,000	109,000
Accounts Payable	204,000	68,000	126,000	274,000
Total Assets	26,038,000	20,383,000	17,387,000	13,299,000
Total Non Current Assets	15,567,000	11,196,000	9,610,000	6,645,000
Other Non Current Assets	290,000	291,000	452,000	359,000
Non Current Deferred Assets	2,170,000	2,384,000	2,427,000	1,378,000
Non Current Deferred Taxes Assets	1,056,000	1,385,000	1,508,000	636,000
Investments And Advances	5,313,000	4,583,000	3,203,000	2,117,000
Investmentin Financial Assets	3,771,000	4,111,000	3,203,000	2,117,000
Available For Sale Securities	3,771,000	4,111,000	3,203,000	2,117,000
Long Term Equity Investment	1,542,000	472,000
Goodwill And Other Intangible Assets	4,699,000	1,482,000	1,455,000	1,056,000
Other Intangible Assets	1,121,000	209,000	224,000	232,000
Goodwill	3,578,000	1,273,000	1,231,000	824,000
Net PPE	3,095,000	2,456,000	2,073,000	1,735,000
Accumulated Depreciation	-1,836,000	-1,508,000	-1,285,000	-995,000
Gross PPE	4,931,000	3,964,000	3,358,000	2,730,000
Leases	433,000	320,000	292,000	226,000
Construction In Progress	117,000	63,000	33,000	53,000
Other Properties	806,000	693,000	715,000	682,000
Machinery Furniture Equipment	3,575,000	2,888,000	2,318,000	1,769,000
Current Assets	10,471,000	9,187,000	7,777,000	6,654,000
Other Current Assets	970,000	668,000	403,000	280,000
Current Deferred Assets	590,000	517,000	461,000	369,000
Prepaid Assets					223,000
Receivables	2,627,000	2,240,000	2,036,000	1,725,000
Accounts Receivable	2,627,000	2,240,000	2,036,000	1,725,000
Cash Cash Equivalents And Short Term Investments	6,284,000	5,762,000	4,877,000	4,280,000
Other Short Term Investments	2,558,000	3,458,000	2,980,000	2,810,000
Cash And Cash Equivalents	3,726,000	2,304,000	1,897,000	1,470,000

Cash Flow

	2025	2024	2023	2022	2021
Free Cash Flow	4,533,000	3,375,000	2,701,000	2,173,000
Repurchase Of Capital Stock	-1,840,000	-696,000	-538,000	0
Repayment Of Debt		0	0	-94,000	-61,000
Capital Expenditure	-911,000	-892,000	-697,000	-550,000
Interest Paid Supplemental Data	22,000	23,000	23,000	24,000
Income Tax Paid Supplemental Data	283,000	230,000	127,000	45,000
End Cash Position	3,732,000	2,310,000	1,904,000	1,475,000
Beginning Cash Position	2,310,000	1,904,000	1,475,000	1,732,000
Effect Of Exchange Rate Changes	7,000	-17,000	1,000	-53,000
Changes In Cash	1,415,000	423,000	428,000	-204,000
Financing Cash Flow	-2,340,000	-1,343,000	-803,000	-344,000
Cash Flow From Continuing Financing Activities	-2,340,000	-1,343,000	-803,000	-344,000
Net Other Financing Charges	-770,000	-884,000	-459,000	-427,000
Proceeds From Stock Option Exercised	270,000	237,000	194,000	177,000
Net Common Stock Issuance	-1,840,000	-696,000	-538,000	0
Common Stock Payments	-1,840,000	-696,000	-538,000	0
Net Issuance Payments Of Debt		0	0	-94,000	-61,000
Net Long Term Debt Issuance		0	0	-94,000	-61,000
Long Term Debt Payments		0	0	-94,000	-61,000
Investing Cash Flow	-1,689,000	-2,501,000	-2,167,000	-2,583,000
Cash Flow From Continuing Investing Activities	-1,689,000	-2,501,000	-2,167,000	-2,583,000
Net Other Investing Changes	38,000	-36,000	-4,000	18,000
Net Investment Purchase And Sale	268,000	-1,460,000	-1,187,000	-1,960,000
Sale Of Investment	4,138,000	3,752,000	3,522,000	2,245,000
Purchase Of Investment	-3,870,000	-5,212,000	-4,709,000	-4,205,000
Net Business Purchase And Sale	-1,084,000	-113,000	-279,000	-91,000
Purchase Of Business	-1,084,000	-113,000	-279,000	-91,000
Net Intangibles Purchase And Sale	-43,000	-40,000	-3,000	0
Purchase Of Intangibles	-43,000	-40,000	-3,000	0
Net PPE Purchase And Sale	-868,000	-852,000	-694,000	-550,000
Purchase Of PPE	-868,000	-852,000	-694,000	-550,000
Operating Cash Flow	5,444,000	4,267,000	3,398,000	2,723,000
Cash Flow From Continuing Operating Activities	5,444,000	4,267,000	3,398,000	2,723,000
Change In Working Capital	29,000	-65,000	-101,000	174,000
Change In Other Working Capital	421,000	466,000	368,000	338,000
Change In Payables And Accrued Expense	304,000	55,000	34,000	215,000
Change In Accrued Expense	249,000	107,000	176,000	43,000
Change In Payable	55,000	-52,000	-142,000	172,000
Change In Account Payable	55,000	-52,000	-142,000	172,000
Change In Prepaid Assets	-384,000	-332,000	-203,000	-39,000
Change In Receivables	-312,000	-254,000	-300,000	-340,000
Changes In Account Receivables	-312,000	-254,000	-300,000	-340,000
Other Non Cash Items	725,000	499,000	459,000	375,000
Stock Based Compensation	1,955,000	1,746,000	1,604,000	1,401,000
Deferred Tax	249,000	98,000	-857,000	15,000
Deferred Income Tax	249,000	98,000	-857,000	15,000
Depreciation Amortization Depletion	738,000	564,000	562,000	433,000
Depreciation And Amortization	738,000	564,000	562,000	433,000
Operating Gains Losses					3,000
Net Income From Continuing Operations	1,748,000	1,425,000	1,731,000	325,000

These metrics estimate what ServiceNow, Inc. is worth based on its fundamentals — independent of what the market currently prices it at. Graham's Fair Value and NCAV are conservative floors rooted in 1930s–60s principles. EPV assumes zero growth. None are price targets — they are reference points for judging whether the current price offers a margin of safety.

Graham's Fair Value

$21.73

Margin of Safety

Market Cap ÷ Company Value

1.12

P/B Ratio

7.36

Warren's Owner Earnings

$3.4B

Latest fiscal year

Graham's 7 Criteria

Defensive Investor Checklist

3/7 — Speculative Investor

✅ Adequate Size

$13.3B

vs > $1.5B revenue

❌ Strong Financial Condition

1.00x

vs Current Ratio > 2.0x

✅ Earnings Stability

No loss years (4 yrs data)

vs No negative EPS years

❌ Dividend Record

No dividend

vs Uninterrupted dividends

✅ Earnings Growth

+421.9% EPS growth

vs > 33% EPS growth

❌ Moderate P/E Ratio

55.1x

vs P/E ≤ 15.0x

❌ Moderate Price-to-Book

7.36x P/B (P/E×P/B: 405.3)

vs P/B ≤ 1.5x | P/E × P/B ≤ 22.5

Net Current Asset Value

$-2.52

Negative NCAV — liabilities exceed current assets. Common in capital-return businesses (buybacks, debt-funded dividends) and capital-intensive industries. Not automatically a warning sign.

"Buy at two-thirds of net current assets." — Graham

Earnings Power Value

$19.65

Per share, no-growth floor. Compare to current price.

Cash Flow Analysis

Metric	2025	2024	2023	2022	2021
Capital Expenditure % of Net Income	52.1%	62.6%	40.3%	169.2%	N/A
Repurchase of Capital Stock	-$1.8B	-$696M	-$538M	$0M	N/A
Free Cash Flow	$4.5B ▲	$3.4B ▲	$2.7B ▲	$2.2B •	N/A •
Warren's Owner Earnings	$3.4B	$2.9B	$3.0B	$1.3B	N/A

Peers & Industry

No auto-detected peers for Software - Application. You can manually compare NOW against any stock using the Compare tool.

"The management of a business is its most important single factor — more important than market position, patents, or financial structure."

— Benjamin Graham

Capital Allocation & Alignment

Insider Ownership

0.20%

Low — management has little skin in the game

Return on Equity (ROE)

13.5%

Adequate — returns are moderate

Return on Assets (ROA)

6.7%

Strong — management uses assets efficiently

Share Buybacks (Latest Year)

$1.8B

Management is returning capital to shareholders via buybacks

Debt Trend YoY

+5.5% YoY

Debt is roughly stable

Leadership Team

William McDermott

Chairman & CEO

Age 63

Pay: $8,069,306

0.462% of net income

Gina Mastantuono

President & CFO

Age 55

Pay: $2,166,155

0.124% of net income

Amit Zavery

President, Chief Product Officer & COO

Age 53

Pay: $4,081,523

0.233% of net income

Frederic Luddy

Founder & Director

Age 70

Pay: $40,000

0.002% of net income

Paul Fipps

President of Global Customer Operations

Age 52

Pay: $2,196,545

0.126% of net income

Top Institutional Holders

Institution	% Owned	Shares
Vanguard Group Inc	9.89%	101,963,384
Blackrock Inc.	9.25%	95,325,092
State Street Corporation	4.65%	47,896,597
JPMORGAN CHASE & CO	3.67%	37,856,728
Price (T.Rowe) Associates Inc	3.14%	32,395,663
Geode Capital Management, LLC	2.28%	23,512,428
Morgan Stanley	2.20%	22,733,483
FMR, LLC	1.53%	15,813,783

⚠️ Current ratio below 1 — liquidity risk

Risk Analysis

Beta (Market Risk)

0.82

Low volatility — more stable than the market

Short Interest

3.8% of float

Low short interest — market is not heavily bearish

Debt-to-Equity

0.21x

Conservative balance sheet — low financial risk

Current Ratio

0.84x

Weak liquidity — current liabilities exceed current assets

52-Week Price Range

Low: $81.24 Current: $92.52 High: $211.48

Currently at 9% of 52-week range

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