Added to YB: 2026-03-02
Pitch date: 2026-02-26
NOW [neutral]
ServiceNow, Inc.
+2.87%
current return
Author Info
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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
$109.0B
Pitch Price
$105.00
Price Target
135.00 (+25%)
Dividend
N/A
EV/EBITDA
35.14
P/E
62.41
EV/Sales
7.63
Sector
Software
Category
growth
Investment Thesis: ServiceNow ($NOW)
NOW (deep dive): Platform orchestrating enterprise workflows on unified code base w/ 2,100+ customers >$1M ACV, <2% churn, 120%+ NRR. Now Assist hit $250M+ ACV, 1,000+ customers on agentic AI; consumption pricing shift introduces execution risk but expands TAM. Q4 cRPO +25% YoY to $12.8B. Trading 25x fwd P/E (40x adj for SBC) vs 68x historical avg after 55% drawdown from ATH. DCF fair value $99.7 vs $104 current. Risks: agentic AI bypass threat, ITSM maturation, SBC dilution 10-15% of rev. Mgmt quality strong: 20 consecutive beats, CEO bought $3M shares, $6.4B buyback authorized. High quality but valuation not yet compelling; awaiting clearer monetization data.
Read full article (22 min)