Added to YB: 2026-08-25
Pitch date: 2026-08-23
NOW [neutral]
ServiceNow, Inc.
+0%
current return
Author Info
Forensic Alpha Research shares forensic equity research for investors who care more about avoiding permanent loss than chasing consensus upside. Sign up for the newsletter.
Company Info
ServiceNow, Inc. provides cloud-based solution for digital workflows in the North America, Brazil, Europe, the Middle East and Africa, Asia Pacific, and internationally.
Market Cap
$132.8B
Pitch Price
$128.06
Price Target
N/A
Dividend
N/A
EV/EBITDA
44.02
P/E
80.27
EV/Sales
9.13
Sector
Software
Category
value
The $NOW Buyback Trap
NOW (pass): Avoid at $130. Trades 27x reported FCF but 58x normalized owner earnings after treating $1.71B SBC (43% of FCF) as real cost. Buybacks ($4-5B) haven't cut share count (grew 1.1% CAGR). GAAP op margin 4% vs non-GAAP 29.5%. $8.8B M&A tripled debt to $7.5B, $9.8B goodwill. CEO pay +37% while stock -28%. PT: Hold $100, Buy $80.
Read full article (21 min)