Latest Ratios: P/E Ratio 66.3x · EV/EBITDA 44.6x · 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 | $114.7B | $160.4B | $1.10T | $726.2B | $395.1B | $659.4B | $557.2B | $278.4B | $158.3B | $111.6B | $61.2B |
| Enterprise Value | $114.2B | $159.9B | $1.10T | $726.6B | $395.9B | $659.9B | $557.7B | $278.8B | $158.4B | $112.0B | $61.3B |
| P/E Ratio → | 66.31 | 91.73 | 773.81 | 420.53 | 1213.34 | 2822.22 | 4586.92 | 443.90 | — | — | — |
| P/S Ratio | 8.64 | 12.08 | 100.58 | 80.95 | 54.54 | 111.84 | 123.30 | 80.45 | 60.69 | 57.73 | 43.98 |
| P/B Ratio | 8.94 | 12.37 | 114.97 | 95.21 | 78.52 | 178.45 | 196.63 | 130.83 | 142.48 | 143.31 | 158.04 |
| P/FCF | 25.07 | 35.05 | 323.50 | 268.58 | 181.84 | 367.96 | 411.53 | 309.89 | 281.61 | 229.79 | 1940.94 |
| P/OCF | 21.08 | 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
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 | — | 12.04 | 100.58 | 81.00 | 54.64 | 111.92 | 123.40 | 80.55 | 60.73 | 57.96 | 44.06 |
| EV / EBITDA | 44.58 | 62.40 | 604.01 | 548.81 | 568.00 | 905.18 | 1186.96 | 1140.10 | 1497.75 | 9754.91 | — |
| EV / EBIT | 62.62 | 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 |
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 | 12.4% | 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% |
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 | 0.25 | 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)
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 | 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 |
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 | 1.5% | 1.1% | 0.1% | 0.2% | 0.1% | 0.0% | 0.0% | 0.2% | — | — | — |
| FCF Yield | 4.0% | 2.9% | 0.3% | 0.4% | 0.5% | 0.3% | 0.2% | 0.3% | 0.4% | 0.4% | 0.1% |
| Buyback Yield | 1.6% | 1.1% | 0.1% | 0.1% | 0.0% | 0.0% | 0.0% | 0.0% | 0.0% | 0.0% | 0.0% |
| Total Shareholder Yield | 1.6% | 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 |
Stock-based compensation dilution
According to current market data, ServiceNow trades at a forward P/E of 23.67, which, when compared to the broader software sector, suggests that investors are pricing in sustained double-digit growth despite the inherent volatility of long-duration enterprise software assets in a fluctuating interest rate environment.
The current P/E multiple of 58.89 on a trailing basis appears to be heavily influenced by the company's aggressive reinvestment strategy, which suppresses GAAP earnings. Investors should monitor whether the forward PEG ratio of 0.85 remains sustainable, as any deceleration in top-line expansion could lead to significant multiple compression given the premium currently assigned to the stock.
Based on reported financial statements, ServiceNow's ROIC has fluctuated between 2.1% and 4.0% over the last ten quarters, a trend that indicates the company is currently prioritizing market share capture and platform development over immediate maximization of returns on invested capital compared to more mature software peers.
The relatively low ROIC suggests that the company's massive investment in R&D and sales infrastructure has yet to reach a point of diminishing returns. While this may appear inefficient in the short term, it likely reflects a strategic choice to entrench the platform's competitive moat before shifting toward a more harvest-oriented capital allocation model.
As reported in recent quarterly filings, the company's asset turnover ratio has remained consistently low at 0.15, which suggests that the business model is capital-intensive in terms of infrastructure requirements relative to the revenue generated from its subscription-based enterprise workflow platform.
The stability of the asset turnover ratio indicates that the company is successfully scaling its revenue in proportion to its asset base, even as it expands into new workflow segments. However, the reliance on large, lumpy enterprise renewals necessitates careful monitoring of DSO trends, which have shown variability between 43 and 60 days over the past ten quarters.
Based on the company's reported figures, the debt-to-equity ratio has remained tightly controlled between 0.21 and 0.30 over the last ten quarters, indicating that management maintains a conservative balance sheet that provides significant flexibility to navigate potential macroeconomic headwinds without compromising core operational investments.
The company's ability to maintain such low leverage while aggressively funding growth suggests a strong reliance on internal cash generation rather than external financing. This conservative stance appears to be a deliberate strategy to mitigate the risks associated with high-growth software firms that are sensitive to shifts in the cost of capital.
As indicated by the company's financial disclosures, the GAAP net margin is frequently misapplied by analysts as a proxy for true earning power, failing to account for the massive, recurring non-cash impact of stock-based compensation that significantly distorts the company's actual cash-generative capacity.
Investors should instead focus on free cash flow margins, which have reached as high as 56.1% in recent periods, providing a more accurate reflection of the business's ability to convert subscription revenue into liquidity. Relying solely on GAAP net margins obscures the underlying profitability of the platform and may lead to an undervaluation of the company's long-term cash-generating potential.
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 66.3x. The historical average is 91.7x.
ServiceNow, Inc.'s current EV/EBITDA is 44.6x. This enterprise value multiple compares the company's total value (equity + debt - cash) to its EBITDA. The historical average is 62.4x.
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 66.3x. 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 1.3x, indicating moderate leverage. A ratio below 2x is generally considered financially healthy.