Added to YB: 2026-04-28
Pitch date: 2026-04-24
NOW [neutral]
ServiceNow, Inc.
+1.56%
current return
Author Info
Chop Wood, Carry Water is a tech manager and investor searching for value-based investments. Sign up for the newsletter.
Company Info
ServiceNow, Inc. provides cloud-based solution for digital workflows in the North America, Europe, the Middle East and Africa, Asia Pacific, and internationally.
Market Cap
$93.0B
Pitch Price
$89.06
Price Target
110.00 (+22%)
Dividend
N/A
EV/EBITDA
28.78
P/E
53.68
EV/Sales
6.27
Sector
Software
Category
value
$NOW Quick Pitch
NOW (more research needed): Enterprise workflow OS w/ sticky moat from operational entrenchment. 80-81% gross margin, 31% op margin, 35% FCF margin on $13.3B rev (+21% YoY). Q4 beat driven by collections timing, not sustainable. AI layer (Now Assist) pressuring margins via compute costs. $2B SBC dilutes shareholder value. Growth decelerating to low-20s. Mgmt narrative inconsistent on AI investment vs margin expansion. DCF yields $105-110 PT vs $85 current; attractive <$70
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