What is ServiceNow, Inc. (NOW) DCF Fair Value and Intrinsic Value in 2026?

ServiceNow, Inc. (NOW) intrinsic value is calculated using conservative multi-stage Discounted Cash Flow (DCF) models, 5-year free cash flow trajectories, Graham Numbers, and owner earnings multiples. LocalAlpha tracks real-time margin of safety against live market prices.

What is ServiceNow, Inc.'s historical Return on Invested Capital (ROIC) and Moat Rating?

ServiceNow, Inc. operates in the Technology sector (Software - Application) with an economic moat rating of WIDE. LocalAlpha tracks 5-year audited quarterly ROIC, operating margin stability, and balance sheet solvency ratios.

What is ServiceNow, Inc.'s financial health rating and Piotroski F-Score?

ServiceNow, Inc.'s balance sheet quality is evaluated using the 9-point Piotroski F-Score, Altman Z-Score solvency model, debt-to-equity ratio, and quick/current liquidity coverage to guard against financial distress.

How does LocalAlpha monitor ServiceNow, Inc. (NOW) for quarterly SEC filing thesis breaks?

LocalAlpha audits ServiceNow, Inc.'s 10-K, 10-Q, and 8-K regulatory filings on SEC EDGAR within 15 minutes of release. If reported metrics breach an investor's custom ROIC floor, operating margin boundary, or qualitative risk criteria, an autonomous breach audit is dispatched immediately.

StocksNOW

NOW

ServiceNow, Inc.Technology / Software - ApplicationINTACT

ServiceNow, Inc. provides cloud-based solution for digital workflows in the North America, Brazil, Europe, the Middle East and Africa, Asia Pacific, and internationally. The company provides asset management, integrated risk management, IT service management, Operational Technology management, Security Operations, strategic portfolio management, IT operations management products; customer service management product; field service management applications; and sales and order management services. It also offers human resources delivery; legal and contract operations; workplace service delivery products; app engine product; automation engine; platform privacy and security product; and source-to-pay operations. In addition, the company provides RaptorDB, a database built to manage workloads at scale; ServiceNow Impact that provides customers with software tools, guided plans, and AI-driven recommendations; customer support; and workflow data fabric. It serves government, financial services, healthcare and life science, manufacturing, Public Sector, retail, technology, and Telecom sectors through service providers and resale partners. The company has a strategic collaboration with Cohesity, Inc. to develop, operate, and safeguard autonomous AI agents and data with enterprise-grade reliability; and with ServiceNow to Advance Ai-Powered Solution for Mission-Critical Infrastructure Monitoring. The company was formerly known as Service-now.com and changed its name to ServiceNow, Inc. in May 2012. ServiceNow, Inc. has a strategic alliance with Accenture for integrated risk management and third-party risk management solutions, and with Tech Mahindra to validate and deliver production-ready, industry-specific enterprise AI and automation solutions at scale. ServiceNow, Inc. was founded in 2004 and is headquartered in Santa Clara, California.

Share Price

$132.53

52W: $81.24 - $194.73

DCF Fair Value

$90.97

-45.7% Premium

Thesis Hub

P/E (TTM)

82.8x

ROIC

Operating Margin

4.1%

FCF Yield

3.8%

Debt / Equity

0.68x

Piotroski Score

6/9

Altman Z-Score

2.88

Market Cap

$137B

Price vs. Intrinsic Value Corridor

Overvalued vs DCF ($90.97)

Historical market price overlaid against conservative DCF Fair Value & Benjamin Graham Margin of Safety bands.

Period Return (1Y)

—()

Period Range

$— - $—

DCF Fair Value

$90.97

MOS Buy Target (-25%)

$68.23

Valuation Overlays: DCF Fair Value ($90.97) 25% MOS Buy Target ($68.23) Revised Graham ($24.20) Graham Number ($20.88)

2-Stage Discounted Cash Flow (DCF) Workbench

Conservative intrinsic value model based on owner cash generation over a 10-year investment horizon. Opens with LocalAlpha's baseline assumptions (matching the fair value shown above) — adjust any input to stress-test.

Current Market Price

$132.53

DCF Fair Value

$90.81

-45.9% Premium

Starting Free Cash Flow ($M)$5,149M

$100M$5,149M (Reported)$50,000M

Stage 1 Growth (Years 1-5)5.3%

-5%10% (Target)35%

Stage 2 Growth (Years 6-10)4.5%

0%5%20%

Discount Rate (WACC / Hurdle)9.0%

6%9% (Standard)15% (High Risk)

Terminal Perpetual Growth2.5%

1% (GDP Floor)2.5% (Inflation)4.0%

Net Debt ($M)$3,800M

-$100B CashBalance Sheet+$150B Debt

10-Yr PV of Cash Flows

$42.4B

PV of Terminal Value

$55.3B

Implied Enterprise Value

$97.7B

Implied Equity Value

$93.9B

Year	Yr 1	Yr 2	Yr 3	Yr 4	Yr 5	Yr 6	Yr 7	Yr 8	Yr 9	Yr 10
Projected FCF ($M)	$5,422	$5,709	$6,012	$6,330	$6,666	$6,966	$7,279	$7,607	$7,949	$8,307
Present Value (PV)	$4,974	$4,805	$4,642	$4,485	$4,332	$4,154	$3,982	$3,818	$3,660	$3,509

Benjamin Graham & Buffett Value Models

Classical deep value metrics based on asset backing, normalized earnings power, and owner cash yield.

Graham Number-534.7% Premium

$20.88

Calculated as √(22.5 × EPS × BVPS). The maximum theoretical price a defensive investor should pay based purely on asset book value and current earnings.

EPS: $1.60BVPS: $12.11

Revised Graham Formula-447.6% Premium

$24.20

Formula: V = (EPS × (8.5 + 2g) × 4.4) / Y where g is the conservative 7-10 yr growth rate and Y is AAA Bond Yield.

Growth Rate (g%)

Bond Yield (Y%)

Buffett Owner Earnings3.6% Yield

$4.73 / share

True distributable cash flow: Net Income + D&A - Maintenance CapEx. Reflects the cash Buffett would extract without hurting unit volume.

Total: $4.9BYield: 3.6%

Reverse DCF: Market Growth Expectation

FAIR BARRIER

9.4% CAGR (Next 10 Yrs)

At the current price of $132.53, the market is assuming the business will compound Free Cash Flow at 9.4% per year for the next decade with a 9% hurdle rate.

Value Investor Verdict

ℹ Fair expectations: Requires steady execution.

Autonomous Thesis Underwriting

Surveil NOW with Mathematical Margin of Safety Rules

Set non-negotiable floor rules for ServiceNow, Inc.. If a newly filed quarterly 10-Q breaks your ROIC floor, operating margin boundary, or balance sheet leverage rules, receive an autonomous breach audit within 15 minutes.

Buffett Quality

ROIC > 15% • Margin > 15% • D/E < 0.5x

Margin Floor Guard

Current Margin 4.1% • Floor > 10%

Solvency Guard

Altman-Z > 2.6 • Current Ratio > 1.5x

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Frequently Asked Questions: ServiceNow, Inc. (NOW) Intrinsic Valuation

Audited fundamentals, DCF intrinsic value sensitivity, and thesis break detection parameters for ServiceNow, Inc..

Based on institutional multi-stage Discounted Cash Flow (DCF) modeling on audited SEC cash flows, ServiceNow, Inc. has an estimated DCF intrinsic fair value of $90.97 per share compared to its current market price of $132.53. This represents an estimated 45.7% premium over fair value. Additionally, its classic Benjamin Graham Number stands at $20.88.