Latest Ratios: P/E Ratio 82.0x · EV/EBITDA 54.8x · ROE 15.5%. (2010–2025 historical series)
Price-based multiples — how expensive the stock is relative to earnings, sales, book value, and cash flow
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Market Cap | $141.6B | $160.4B | $220.9B | $145.3B | $79.0B | $131.9B | $111.5B | $55.7B | $31.7B | $22.3B | $12.2B |
| Enterprise Value | $140.3B | $159.1B | $220.9B | $145.6B | $79.8B | $132.4B | $111.9B | $56.0B | $31.8B | $22.8B | $12.3B |
| P/E Ratio → | 82.04 | 91.73 | 154.76 | 84.11 | 242.66 | 564.43 | 917.42 | 88.77 | — | — | — |
| P/S Ratio | 10.67 | 12.08 | 20.12 | 16.19 | 10.91 | 22.37 | 24.66 | 16.09 | 12.14 | 11.55 | 8.80 |
| P/B Ratio | 11.06 | 12.37 | 22.99 | 19.04 | 15.70 | 35.69 | 39.33 | 26.16 | 28.50 | 28.66 | 31.61 |
| P/FCF | 30.95 | 35.05 | 64.70 | 53.72 | 36.37 | 73.59 | 82.31 | 61.97 | 56.32 | 45.96 | 388.24 |
| P/OCF | 26.02 | 29.46 | 51.78 | 42.75 | 29.02 | 60.19 | 62.38 | 45.05 | 39.04 | 34.72 | 76.49 |
P/E links to full P/E history page with 30-year chart
Enterprise-value multiples — capital-structure-neutral measures of total business value
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| EV / Revenue | — | 11.98 | 20.11 | 16.23 | 11.01 | 22.45 | 24.76 | 16.19 | 12.17 | 11.78 | 8.87 |
| EV / EBITDA | 54.77 | 62.09 | 120.79 | 110.00 | 114.47 | 181.57 | 238.18 | 229.17 | 300.27 | 1982.26 | — |
| EV / EBIT | 76.93 | 70.35 | 125.45 | 141.12 | 187.29 | 477.84 | 611.54 | 557.70 | 2316.80 | — | — |
| EV / FCF | — | 34.76 | 64.69 | 53.86 | 36.72 | 73.86 | 82.65 | 62.37 | 56.49 | 46.88 | 391.62 |
Margins and return-on-capital ratios measuring operating efficiency
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% |
| 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 | 12.9% | 12.9% | 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% |
Solvency and debt-coverage ratios — lower is generally safer
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Debt / Equity | 0.19 | 0.19 | 0.24 | 0.30 | 0.44 | 0.60 | 0.75 | 0.53 | 0.60 | 1.51 | 1.31 |
| Debt / EBITDA | 0.94 | 0.94 | 1.25 | 1.73 | 3.20 | 3.04 | 4.54 | 4.63 | 6.26 | 102.16 | — |
| Net Debt / Equity | — | -0.10 | -0.00 | 0.05 | 0.15 | 0.13 | 0.16 | 0.17 | 0.09 | 0.57 | 0.28 |
| Net Debt / EBITDA | -0.52 | -0.52 | -0.01 | 0.29 | 1.09 | 0.67 | 0.97 | 1.45 | 0.90 | 38.91 | — |
| Debt / FCF | — | -0.29 | -0.01 | 0.14 | 0.35 | 0.27 | 0.34 | 0.40 | 0.17 | 0.92 | 3.38 |
| Interest Coverage | 98.30 | 98.30 | 76.57 | 43.00 | 15.78 | 9.89 | 5.55 | 3.02 | 0.26 | -1.18 | -11.39 |
Net cash position: cash ($3.7B) exceeds total debt ($2.4B)
Short-term solvency ratios and asset-utilisation metrics
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Current Ratio | 1.00 | 1.00 | 1.10 | 1.06 | 1.11 | 1.05 | 1.21 | 1.03 | 1.17 | 1.19 | 1.25 |
| Quick Ratio | 1.00 | 1.00 | 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 |
Earnings, FCF, buyback, and dividend yields — total returns to shareholders
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 | — | — | — | — | — | — | — | — | — | — | — |
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Earnings Yield | 1.2% | 1.1% | 0.6% | 1.2% | 0.4% | 0.2% | 0.1% | 1.1% | — | — | — |
| FCF Yield | 3.2% | 2.9% | 1.5% | 1.9% | 2.7% | 1.4% | 1.2% | 1.6% | 1.8% | 2.2% | 0.3% |
| Buyback Yield | 1.3% | 1.1% | 0.3% | 0.4% | 0.0% | 0.0% | 0.0% | 0.0% | 0.0% | 0.2% | 0.0% |
| Total Shareholder Yield | 1.3% | 1.1% | 0.3% | 0.4% | 0.0% | 0.0% | 0.0% | 0.0% | 0.0% | 0.2% | 0.0% |
| Shares Outstanding | — | $1.0B | $1.0B | $1.0B | $1.0B | $1.0B | $1.0B | $986M | $889M | $856M | $823M |
Includes 30+ ratios · 16 years · Updated daily
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Quick answers to the most common questions about buying NOW stock.
ServiceNow, Inc.'s current P/E ratio is 82.0x. The historical average is 104.8x.
ServiceNow, Inc.'s current EV/EBITDA is 54.8x. This enterprise value multiple compares the company's total value (equity + debt - cash) to its EBITDA. The historical average is 62.1x.
ServiceNow, Inc.'s return on equity (ROE) is 15.5%. The historical average is -10.9%.
Based on historical data, ServiceNow, Inc. is trading at a P/E of 82.0x. Compare with industry peers and growth rates for a complete picture.
ServiceNow, Inc. has 77.5% gross margin and 13.7% operating margin. Operating margin between 10-20% is typical for established companies.
ServiceNow, Inc.'s Debt/EBITDA ratio is 0.9x, indicating low leverage. A ratio below 2x is generally considered financially healthy.
Key Metrics
Top Statement Risk
AI cost and leverage
Metrics are mathematically derived from official filings.
Margin Compression from AI Investment
Gross margin fell to 70.7% in Q2 2026 from 77.5% a year earlier, as reported in financial statements, suggesting AI compute costs are pressuring profitability despite strong revenue growth.
The 6.8 percentage point decline in gross margin is a significant deviation from the historical 78-80% range, indicating that the integration of AI capabilities may carry higher variable costs. Operating margin also contracted sharply to 4.1% from 11.1% in the prior year, reflecting accelerated R&D and S&M spending. This suggests that the company is deliberately trading near-term profitability for long-term AI leadership, but investors should monitor whether this is a temporary investment phase or a structural shift in the cost base.
ROIC Dips on Acquisition Distortion
ROIC fell to 0.8% in Q2 2026 from 2.8% a year earlier, based on reported figures, as the $7.5B acquisition expanded the capital base faster than operating income.
The sequential drop in ROIC from 3.3% in Q1 2026 to 0.8% in Q2 is largely attributable to the acquisition, which added significant goodwill and intangibles without immediate earnings contribution. This suggests that the company's return on capital is temporarily depressed, but the underlying organic business likely maintains higher returns. Investors should assess ROIC excluding the acquisition to gauge the true compounding power of the core platform.
Working Capital Efficiency Holds Steady
DSO improved to 45 days in Q2 2026 from 52 days in Q1, as per reported data, while DPO remained low at 23 days, indicating stable collection efficiency despite billing seasonality.
The improvement in DSO suggests that the company is managing receivables effectively, even as revenue grows at 24%. However, the negative cash conversion cycle is not achievable given the low DPO, which reflects the company's limited leverage over suppliers. The working capital swings observed in cash flow are likely due to the timing of large enterprise contracts, not a deterioration in efficiency.
Leverage Jumps on Acquisition Financing
D/E rose to 0.68 in Q2 2026 from 0.21 in Q1, as reported in the balance sheet, while interest coverage fell to 7.64x from 112.17x, reflecting the $7.5B acquisition debt.
The increase in leverage is a direct result of the acquisition financing, which also pushed D/EBITDA to 14.86x from 3.19x. While interest coverage remains adequate, the sharp decline warrants monitoring, especially if the company continues to pursue inorganic growth. The debt service appears manageable given the company's robust cash flow, but the elevated leverage reduces financial flexibility.
Liquidity Tightens Below Comfort
Current ratio fell to 0.70 in Q2 2026 from 0.84 in Q1, as per reported figures, with cash at $2.5B, indicating a tighter liquidity position post-acquisition.
The current ratio below 1.0 suggests that current liabilities exceed current assets, which is unusual for a software company and may indicate reliance on operating cash flow to meet short-term obligations. However, the company's strong cash generation and access to credit markets mitigate immediate liquidity risk. Investors should monitor whether the company rebuilds its cash position or continues to deploy capital aggressively.
Misapplied P/E on SBC-Heavy Earnings
The trailing P/E of 66.6x overstates the company's true earnings power, as stock-based compensation of $652M exceeded net income in Q2 2026, according to reported figures.
GAAP net income is significantly reduced by SBC, making the P/E ratio appear expensive. However, investors often use non-GAAP earnings that add back SBC, which understates the economic cost to shareholders. A more appropriate valuation metric is EV/EBITDA or P/FCF, but even these need adjustment for SBC. The forward P/E of 27.32x implies a sharp earnings recovery, which may be optimistic given the margin pressures. Investors should use a price-to-earnings ratio based on cash earnings (net income plus SBC) to better reflect the company's value creation.