ServiceNow, Inc. (NOW) Financial Ratios
16 years of historical data (2010–2025) · Technology · Software - Application
EV/EBITDA
↓
38.23
↓-93% vs avg
5yr avg: 537.68
30Y Low62.4·High62.4
P/FCF
↓
21.52
↓-91% vs avg
5yr avg: 235.39
30Y Low35.1·High181.8
P/B Ratio
↓
7.68
↓-92% vs avg
5yr avg: 95.91
30Y Low12.4·High196.6
ROE
↑
15.5%
↓+5% vs avg
5yr avg: 14.8%
30Y Low-95%·High39%
Debt/EBITDA
↓
1.25
↓-40% vs avg
5yr avg: 2.09
30Y Low1.2·High6.3
Percentile shows where the current value sits in 30-year historical distribution. Sparklines show 5-year trend.
NOW Valuation Multiples
Price-based multiples — how expensive the stock is relative to earnings, sales, book value, and cash flow
ServiceNow, Inc. trades at 56.9x earnings, 95% below its 5-year average of 1064.3x, sitting at the 0th percentile of its historical range. Compared to the Technology sector median P/E of 29.0x, the stock trades at a premium of 96%. On a free-cash-flow basis, the stock trades at 21.5x P/FCF, 91% below the 5-year average of 235.4x.
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Market Cap | $98.5B | $160.4B | $1.10T | $726.2B | $395.1B | $659.4B | $557.2B | $278.4B | $158.3B | $111.6B | $61.2B |
| Enterprise Value | $98.0B | $159.9B | $1.10T | $726.6B | $395.9B | $659.9B | $557.7B | $278.8B | $158.4B | $112.0B | $61.3B |
| P/E Ratio → | 56.91 | 91.73 | 773.81 | 420.53 | 1213.34 | 2822.22 | 4586.92 | 443.90 | — | — | — |
| P/S Ratio | 7.42 | 12.08 | 100.58 | 80.95 | 54.54 | 111.84 | 123.30 | 80.45 | 60.69 | 57.73 | 43.98 |
| P/B Ratio | 7.68 | 12.37 | 114.97 | 95.21 | 78.52 | 178.45 | 196.63 | 130.83 | 142.48 | 143.31 | 158.04 |
| P/FCF | 21.52 | 35.05 | 323.50 | 268.58 | 181.84 | 367.96 | 411.53 | 309.89 | 281.61 | 229.79 | 1940.94 |
| P/OCF | 18.09 | 29.46 | 258.91 | 213.73 | 145.11 | 300.95 | 311.91 | 225.25 | 195.20 | 173.61 | 382.42 |
P/E links to full P/E history page with 30-year chart
NOW EV Ratios
Enterprise-value multiples — capital-structure-neutral measures of total business value
ServiceNow, Inc.'s enterprise value stands at 38.2x EBITDA, 93% below its 5-year average of 537.7x. The Technology sector median is 16.7x, placing the stock at a 128% premium on an enterprise-value basis.
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| EV / Revenue | — | 12.04 | 100.58 | 81.00 | 54.64 | 111.92 | 123.40 | 80.55 | 60.73 | 57.96 | 44.06 |
| EV / EBITDA | 38.23 | 62.40 | 604.01 | 548.81 | 568.00 | 905.18 | 1186.96 | 1140.10 | 1497.75 | 9754.91 | — |
| EV / EBIT | 53.70 | 70.71 | 627.34 | 704.10 | 929.33 | 2567.61 | 3047.58 | 2774.57 | 11556.13 | — | — |
| EV / FCF | — | 34.94 | 323.50 | 268.72 | 182.19 | 368.23 | 411.87 | 310.28 | 281.78 | 230.71 | 1944.33 |
NOW Profitability
Margins and return-on-capital ratios measuring operating efficiency
ServiceNow, Inc. earns an operating margin of 13.7%. Operating margins have expanded from 8.5% to 13.7% over the past 3 years, signaling improving operational efficiency. ROE of 15.5% indicates solid capital efficiency. ROIC of 12.4% represents solid returns on invested capital.
Margins
Full margin charts and quarterly trend are on the Earnings History page
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Gross Margin | 77.5% | 77.5% | 79.2% | 78.6% | 78.3% | 77.1% | 78.2% | 77.0% | 76.1% | 74.1% | 71.3% |
| Operating Margin | 13.7% | 13.7% | 12.4% | 8.5% | 4.9% | 4.4% | 4.4% | 1.2% | -1.6% | -5.2% | -30.4% |
| Net Profit Margin | 13.2% | 13.2% | 13.0% | 19.3% | 4.5% | 3.9% | 2.6% | 18.1% | -1.0% | -7.7% | -32.5% |
Return on Capital
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| ROE | 15.5% | 15.5% | 16.5% | 27.3% | 7.4% | 7.0% | 4.8% | 38.7% | -2.8% | -25.6% | -94.7% |
| ROA | 7.5% | 7.5% | 7.5% | 11.3% | 2.7% | 2.4% | 1.6% | 12.7% | -0.7% | -5.3% | -23.5% |
| ROIC | 12.4% | 12.4% | 11.6% | 8.3% | 5.3% | 5.2% | 5.2% | 1.7% | -2.6% | -8.8% | -56.5% |
| ROCE | 13.2% | 13.2% | 12.4% | 8.8% | 5.4% | 4.7% | 4.8% | 1.6% | -2.5% | -8.2% | -41.5% |
NOW Leverage & Debt
Solvency and debt-coverage ratios — lower is generally safer
ServiceNow, Inc. carries a Debt/EBITDA ratio of 1.3x, which is manageable (58% below the sector average of 2.9x). The company holds a net cash position — cash of $3.7B exceeds total debt of $3.2B, providing substantial financial flexibility for buybacks, acquisitions, or weathering downturns.
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Debt / Equity | 0.25 | 0.25 | 0.24 | 0.30 | 0.44 | 0.60 | 0.75 | 0.53 | 0.60 | 1.51 | 1.31 |
| Debt / EBITDA | 1.25 | 1.25 | 1.25 | 1.73 | 3.20 | 3.04 | 4.54 | 4.63 | 6.26 | 102.16 | — |
| Net Debt / Equity | — | -0.04 | -0.00 | 0.05 | 0.15 | 0.13 | 0.16 | 0.17 | 0.09 | 0.57 | 0.28 |
| Net Debt / EBITDA | -0.20 | -0.20 | -0.01 | 0.29 | 1.09 | 0.67 | 0.97 | 1.45 | 0.90 | 38.91 | — |
| Debt / FCF | — | -0.11 | -0.01 | 0.14 | 0.35 | 0.27 | 0.34 | 0.40 | 0.17 | 0.92 | 3.38 |
| Interest Coverage | — | — | 76.57 | 43.00 | 15.78 | 9.18 | 5.55 | 3.02 | 0.26 | -1.18 | -11.39 |
Net cash position: cash ($3.7B) exceeds total debt ($3.2B)
NOW Liquidity & Efficiency
Short-term solvency ratios and asset-utilisation metrics
The current ratio of 0.95x is below 1.0, meaning current liabilities exceed current assets — though the company's $3.7B cash position helps mitigate short-term liquidity concerns. The current ratio has declined from 1.06x to 0.95x over the past 3 years.
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Current Ratio | 0.95 | 0.95 | 1.10 | 1.06 | 1.11 | 1.05 | 1.21 | 1.03 | 1.17 | 1.19 | 1.25 |
| Quick Ratio | 0.95 | 0.95 | 1.10 | 1.06 | 1.11 | 1.05 | 1.21 | 1.03 | 1.17 | 1.19 | 1.25 |
| Cash Ratio | 0.60 | 0.60 | 0.69 | 0.66 | 0.71 | 0.67 | 0.83 | 0.61 | 0.74 | 0.87 | 0.84 |
| Asset Turnover | — | 0.51 | 0.54 | 0.52 | 0.54 | 0.55 | 0.52 | 0.57 | 0.67 | 0.54 | 0.68 |
| Inventory Turnover | — | — | — | — | — | — | — | — | — | — | — |
| Days Sales Outstanding | — | 72.21 | 74.44 | 82.84 | 86.90 | 86.05 | 81.49 | 88.10 | 80.42 | 82.53 | 84.72 |
NOW Shareholder Yields
Earnings, FCF, buyback, and dividend yields — total returns to shareholders
ServiceNow, Inc. returns 1.9% to shareholders annually primarily through share buybacks. The earnings yield of 1.8% (inverse of P/E) provides a useful comparison to bond yields when assessing the stock's relative attractiveness to fixed income.
Dividends
Full dividend history and growth charts are on the Dividend History page
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Dividend Yield | — | — | — | — | — | — | — | — | — | — | — |
| Payout Ratio | — | — | — | — | — | — | — | — | — | — | — |
Total Shareholder Return Metrics
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Earnings Yield | 1.8% | 1.1% | 0.1% | 0.2% | 0.1% | 0.0% | 0.0% | 0.2% | — | — | — |
| FCF Yield | 4.6% | 2.9% | 0.3% | 0.4% | 0.5% | 0.3% | 0.2% | 0.3% | 0.4% | 0.4% | 0.1% |
| Buyback Yield | 1.9% | 1.1% | 0.1% | 0.1% | 0.0% | 0.0% | 0.0% | 0.0% | 0.0% | 0.0% | 0.0% |
| Total Shareholder Yield | 1.9% | 1.1% | 0.1% | 0.1% | 0.0% | 0.0% | 0.0% | 0.0% | 0.0% | 0.0% | 0.0% |
| Shares Outstanding | — | $1.0B | $1.0B | $1.0B | $1.0B | $1.0B | $1.0B | $986M | $889M | $856M | $823M |
Peer Comparison
Compare NOW with 10 similar companies in its peer group
| Company | Market Cap | P/E | EV/EBITDA | P/FCF | Gross Margin | Op Margin | ROE | ROIC | Debt/EBITDA |
|---|---|---|---|---|---|---|---|---|---|
 NOWYou | $98B | 56.9 | 38.2 | 21.5 | 77.5% | 13.7% | 15.5% | 12.4% | 1.3 |
 CRM | $124B | 19.5 | 10.7 | 8.6 | 77.7% | 21.5% | 12.4% | 10.1% | 1.4 |
 WDAY | $31B | 45.3 | 24.0 | 11.0 | 75.7% | 10.7% | 8.2% | 7.3% | 2.8 |
 INTU | $73B | 19.5 | 13.4 | 12.0 | 80.8% | 26.1% | 20.3% | 16.5% | 1.2 |
 ADSK | $41B | 37.1 | 20.8 | 17.0 | 91.0% | 24.9% | 39.7% | 37.8% | 1.4 |
 ORCL | $530B | 31.6 | 22.8 | — | 65.2% | 30.8% | 53.4% | 11.0% | 5.4 |
 MNDY | $4B | 31.9 | 207.0 | 11.8 | 89.2% | -0.1% | 10.4% | -2.4% | 25.9 |
 TEAM | $22B | -84.4 | — | 15.3 | 82.8% | -2.5% | -21.6% | -110.3% | — |
 PEGA | $5B | 14.1 | 17.1 | 10.4 | 75.9% | 15.1% | 57.3% | 27.2% | 0.3 |
 APPN | $2B | 1269.7 | 170.6 | 26.0 | 72.5% | 0.1% | — | 0.3% | 33.5 |
 DDOG | $79B | 743.3 | 1030.2 | 79.3 | 80.0% | -1.3% | 3.3% | -0.8% | 19.6 |
| Technology Median | — | 29.0 | 16.7 | 19.2 | 48.8% | 0.2% | 1.6% | 2.7% | 2.9 |
Peer selection based on competitive and market overlap. Compare multiple stocks →
Download Financial Ratios Data
Includes 30+ ratios · 16 years · Updated daily
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NOW — Frequently Asked Questions
Quick answers to the most common questions about buying NOW stock.
What is ServiceNow, Inc.'s P/E ratio?
ServiceNow, Inc.'s current P/E ratio is 56.9x. The historical average is 91.7x.
What is ServiceNow, Inc.'s EV/EBITDA?
ServiceNow, Inc.'s current EV/EBITDA is 38.2x. This enterprise value multiple compares the company's total value (equity + debt - cash) to its EBITDA. The historical average is 62.4x.
What is ServiceNow, Inc.'s ROE?
ServiceNow, Inc.'s return on equity (ROE) is 15.5%. The historical average is -10.9%.
Is NOW stock overvalued?
Based on historical data, ServiceNow, Inc. is trading at a P/E of 56.9x. Compare with industry peers and growth rates for a complete picture.
What are ServiceNow, Inc.'s profit margins?
ServiceNow, Inc. has 77.5% gross margin and 13.7% operating margin. Operating margin between 10-20% is typical for established companies.
How much debt does ServiceNow, Inc. have?
ServiceNow, Inc.'s Debt/EBITDA ratio is 1.3x, indicating moderate leverage. A ratio below 2x is generally considered financially healthy.