Added to YB: 2026-05-13
Pitch date: 2026-05-10
NOW [bullish]
ServiceNow, Inc.
-2.24%
current return
Author Info
No bio for this author
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
$94.0B
Pitch Price
$91.04
Price Target
274.50 (+208%)
Dividend
N/A
EV/EBITDA
29.12
P/E
54.28
EV/Sales
6.34
Sector
Software
Category
growth
ServiceNow Deep Dive $NOW
NOW: Workflow engine w/ 98% retention, 125%+ NRR, expanding from IT into enterprise harness for agentic era. 4 demand drivers: rising complexity, efficiency push, knowledge cliff, agent governance. AI Control Tower + Action Fabric position for agentic transition. $30B rev by 2030 (17% CAGR from $16B); FCF $10B implies 9.4x vs 25-35x fair multiple = 3x+ upside. 32% FCF margin, 22% rev growth, net cash balance. Risks: MSFT competition, SBC 14.7% rev (declining), fed headwinds, SaaSpocalypse narrative. McDermott bought $3M stock, execs cancelled sales. Jensen Huang endorsed at Knowledge 2026. Trading 6.7x sales, 4.9% FCF yield despite durability. Base case: 2-3x return; bull case: 5x if harness thesis gains consensus + multiple rerate to 12-15x rev.
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