Added to YB: 2026-03-31
Pitch date: 2026-03-28
NOW [bullish]
ServiceNow, Inc.
+4.91%
current return
Author Info
HatedMoats identifies hated moats. I buy companies when the market panics. Contrarian investor focused on quality, value & long-term growth. 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
$104.0B
Pitch Price
$100.06
Price Target
199.00 (+100%)
Dividend
N/A
EV/EBITDA
33.39
P/E
59.53
EV/Sales
7.25
Sector
Software
Category
value
ServiceNow: Deep Dive Analysis
NOW: Deep enterprise workflow platform with 97% subscription revenue, 98% renewal rate, 21% growth. FY25: $13.3B rev, 35% FCF margin; FY26 guide: $15.5B (+21%), 36% FCF margin. Stock -50%+ from highs on AI/SaaS fears despite robust fundamentals. CEO bought $3M shares; insider selling plans cancelled. DCF base: $160 (+55% upside from ~$104); bear: $98.5 (-4%). Trading 8.2x P/S, 23x P/FCF vs prior 'perfection' pricing. Risks: AI displacement, margin pressure from acquisitions (Moveworks $2.4B, pending Armis $7.75B), 15% SBC/revenue dilution. Bull: AI strengthens platform as orchestration layer; Bear: suite vendors bundle aggressively. Strong moat (8/10) but sentiment soured (7.5/10 hate). 68% HMOS probability to outperform SPX over 5yr. Base case: 11-20% CAGR to $170. Buy on quality compounder at reasonable multiple post-drawdown.
Read full article (26 min)