Intrinsic value of ServiceNow - NOW

Previous Close

$172.97

  Intrinsic Value

$687.20

stock screener

  Rating & Target

str. buy

+297%

Previous close

$172.97

 
Intrinsic value

$687.20

 
Up/down potential

+297%

 
Rating

str. buy

We calculate the intrinsic value of NOW stock by summing up the current values of future distributable cash flows generated by the company and dividing the sum by the number of outstanding shares. As such, the intrinsic value calculation depends entirely on projections. The more accurate your projections of the company's performance are - the more reliable is the intrinsic value calculation result. Please make sure to check the stock valuation input data below and adjust it if necessary. The quality of the output (intrinsic valuation result) is only as good as the quality of the input. See also DISCLAIMERS.

STOCK VALUATION INPUT DATA

Revenue (in 0001), $M
Initial revenue growth rate, %
Terminal revenue growth rate, %
Revenue decline factor
Initial discount rate, %
Discount rate multiplier
Variable cost ratio, %
Fixed operating expenses, $M
Interest rate on debt, %
Effective corporate tax rate, %
Production assets / Revenue, %
Life of production assets, yrs
Working capital / Revenue, %
Revenue / Adjusted assets
Adjusted equity ratio
Cash flow adjustment, % of Revenue
Book value of equity, $M
Shares outstanding, mln
Market capitalization, $bln 30.8

 

FINANCIAL STATEMENTS FORECAST and PRESENT VALUE CALCULATION

Fiscal year
   2
   3
   4
   5
   6
   7
   8
   9
   10
   11
   12
   13
   14
   15
   16
   17
   18
   19
   20
   21
   22
   23
   24
   25
   26
   27
   28
   29
   30
   31

INCOME STATEMENT

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Revenue growth rate, %
  40.80
  37.22
  34.00
  31.10
  28.49
  26.14
  24.03
  22.12
  20.41
  18.87
  17.48
  16.23
  15.11
  14.10
  13.19
  12.37
  11.63
  10.97
  10.37
  9.84
  9.35
  8.92
  8.53
  8.17
  7.86
  7.57
  7.31
  7.08
  6.87
  6.69
Revenue, $m
  2,722
  3,735
  5,004
  6,561
  8,430
  10,633
  13,188
  16,106
  19,393
  23,052
  27,082
  31,479
  36,236
  41,345
  46,798
  52,588
  58,706
  65,146
  71,904
  78,976
  86,363
  94,064
  102,083
  110,426
  119,101
  128,117
  137,486
  147,223
  157,342
  167,863
Variable operating expenses, $m
  1,102
  1,504
  2,008
  2,625
  3,367
  4,241
  5,255
  6,413
  7,718
  9,170
  10,747
  12,492
  14,380
  16,408
  18,572
  20,869
  23,297
  25,853
  28,535
  31,341
  34,273
  37,329
  40,511
  43,822
  47,265
  50,843
  54,561
  58,425
  62,440
  66,615
Fixed operating expenses, $m
  1,301
  1,330
  1,359
  1,389
  1,419
  1,451
  1,482
  1,515
  1,548
  1,582
  1,617
  1,653
  1,689
  1,726
  1,764
  1,803
  1,843
  1,883
  1,925
  1,967
  2,010
  2,055
  2,100
  2,146
  2,193
  2,242
  2,291
  2,341
  2,393
  2,445
Total operating expenses, $m
  2,403
  2,834
  3,367
  4,014
  4,786
  5,692
  6,737
  7,928
  9,266
  10,752
  12,364
  14,145
  16,069
  18,134
  20,336
  22,672
  25,140
  27,736
  30,460
  33,308
  36,283
  39,384
  42,611
  45,968
  49,458
  53,085
  56,852
  60,766
  64,833
  69,060
Operating income, $m
  319
  901
  1,638
  2,547
  3,644
  4,941
  6,450
  8,178
  10,127
  12,300
  14,718
  17,334
  20,167
  23,211
  26,462
  29,915
  33,566
  37,410
  41,444
  45,668
  50,080
  54,680
  59,472
  64,458
  69,643
  75,033
  80,635
  86,457
  92,509
  98,802
EBITDA, $m
  426
  1,040
  1,817
  2,774
  3,930
  5,297
  6,886
  8,705
  10,757
  13,045
  15,568
  18,322
  21,304
  24,509
  27,932
  31,567
  35,409
  39,455
  43,702
  48,148
  52,791
  57,634
  62,678
  67,926
  73,383
  79,056
  84,952
  91,080
  97,450
  104,073
Interest expense (income), $m
  0
  75
  140
  224
  328
  456
  610
  792
  1,002
  1,243
  1,513
  1,815
  2,147
  2,509
  2,901
  3,322
  3,771
  4,248
  4,752
  5,282
  5,839
  6,422
  7,030
  7,665
  8,325
  9,013
  9,727
  10,470
  11,242
  12,044
  12,877
Earnings before tax, $m
  244
  761
  1,415
  2,219
  3,187
  4,331
  5,659
  7,175
  8,884
  10,787
  12,903
  15,187
  17,658
  20,310
  23,141
  26,144
  29,318
  32,658
  36,162
  39,829
  43,658
  47,650
  51,807
  56,133
  60,631
  65,306
  70,165
  75,215
  80,465
  85,924
Tax expense, $m
  66
  206
  382
  599
  861
  1,169
  1,528
  1,937
  2,399
  2,912
  3,484
  4,101
  4,768
  5,484
  6,248
  7,059
  7,916
  8,818
  9,764
  10,754
  11,788
  12,866
  13,988
  15,156
  16,370
  17,633
  18,945
  20,308
  21,726
  23,200
Net income, $m
  178
  556
  1,033
  1,620
  2,327
  3,162
  4,131
  5,238
  6,486
  7,874
  9,419
  11,087
  12,890
  14,826
  16,893
  19,085
  21,402
  23,840
  26,398
  29,075
  31,870
  34,785
  37,819
  40,977
  44,260
  47,673
  51,220
  54,907
  58,740
  62,725

BALANCE SHEET

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Cash and short-term investments, $m
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
Total assets, $m
  4,597
  6,309
  8,453
  11,082
  14,240
  17,962
  22,277
  27,205
  32,758
  38,940
  45,747
  53,174
  61,209
  69,840
  79,051
  88,831
  99,165
  110,044
  121,459
  133,406
  145,883
  158,891
  172,438
  186,531
  201,184
  216,414
  232,240
  248,687
  265,781
  283,552
Adjusted assets (=assets-cash), $m
  4,597
  6,309
  8,453
  11,082
  14,240
  17,962
  22,277
  27,205
  32,758
  38,940
  45,747
  53,174
  61,209
  69,840
  79,051
  88,831
  99,165
  110,044
  121,459
  133,406
  145,883
  158,891
  172,438
  186,531
  201,184
  216,414
  232,240
  248,687
  265,781
  283,552
Revenue / Adjusted assets
  0.592
  0.592
  0.592
  0.592
  0.592
  0.592
  0.592
  0.592
  0.592
  0.592
  0.592
  0.592
  0.592
  0.592
  0.592
  0.592
  0.592
  0.592
  0.592
  0.592
  0.592
  0.592
  0.592
  0.592
  0.592
  0.592
  0.592
  0.592
  0.592
  0.592
Average production assets, $m
  427
  586
  786
  1,030
  1,323
  1,669
  2,071
  2,529
  3,045
  3,619
  4,252
  4,942
  5,689
  6,491
  7,347
  8,256
  9,217
  10,228
  11,289
  12,399
  13,559
  14,768
  16,027
  17,337
  18,699
  20,114
  21,585
  23,114
  24,703
  26,354
Working capital, $m
  -1,200
  -1,647
  -2,207
  -2,893
  -3,718
  -4,689
  -5,816
  -7,103
  -8,552
  -10,166
  -11,943
  -13,882
  -15,980
  -18,233
  -20,638
  -23,191
  -25,889
  -28,729
  -31,710
  -34,829
  -38,086
  -41,482
  -45,019
  -48,698
  -52,524
  -56,500
  -60,631
  -64,925
  -69,388
  -74,027
Total debt, $m
  2,188
  3,492
  5,127
  7,130
  9,536
  12,372
  15,660
  19,416
  23,647
  28,357
  33,545
  39,204
  45,327
  51,903
  58,922
  66,374
  74,249
  82,539
  91,237
  100,341
  109,848
  119,760
  130,083
  140,822
  151,987
  163,593
  175,652
  188,185
  201,210
  214,751
Total liabilities, $m
  3,503
  4,807
  6,442
  8,445
  10,851
  13,687
  16,975
  20,731
  24,962
  29,672
  34,859
  40,519
  46,641
  53,218
  60,237
  67,689
  75,564
  83,854
  92,552
  101,655
  111,163
  121,075
  131,398
  142,137
  153,302
  164,907
  176,967
  189,500
  202,525
  216,066
Total equity, $m
  1,094
  1,501
  2,012
  2,638
  3,389
  4,275
  5,302
  6,475
  7,796
  9,268
  10,888
  12,655
  14,568
  16,622
  18,814
  21,142
  23,601
  26,190
  28,907
  31,751
  34,720
  37,816
  41,040
  44,394
  47,882
  51,507
  55,273
  59,188
  63,256
  67,485
Total liabilities and equity, $m
  4,597
  6,308
  8,454
  11,083
  14,240
  17,962
  22,277
  27,206
  32,758
  38,940
  45,747
  53,174
  61,209
  69,840
  79,051
  88,831
  99,165
  110,044
  121,459
  133,406
  145,883
  158,891
  172,438
  186,531
  201,184
  216,414
  232,240
  248,688
  265,781
  283,551
Debt-to-equity ratio
  2.000
  2.330
  2.550
  2.700
  2.810
  2.890
  2.950
  3.000
  3.030
  3.060
  3.080
  3.100
  3.110
  3.120
  3.130
  3.140
  3.150
  3.150
  3.160
  3.160
  3.160
  3.170
  3.170
  3.170
  3.170
  3.180
  3.180
  3.180
  3.180
  3.180
Adjusted equity ratio
  0.238
  0.238
  0.238
  0.238
  0.238
  0.238
  0.238
  0.238
  0.238
  0.238
  0.238
  0.238
  0.238
  0.238
  0.238
  0.238
  0.238
  0.238
  0.238
  0.238
  0.238
  0.238
  0.238
  0.238
  0.238
  0.238
  0.238
  0.238
  0.238
  0.238

CASH FLOW

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Net income, $m
  178
  556
  1,033
  1,620
  2,327
  3,162
  4,131
  5,238
  6,486
  7,874
  9,419
  11,087
  12,890
  14,826
  16,893
  19,085
  21,402
  23,840
  26,398
  29,075
  31,870
  34,785
  37,819
  40,977
  44,260
  47,673
  51,220
  54,907
  58,740
  62,725
Depreciation, amort., depletion, $m
  107
  139
  179
  228
  286
  355
  436
  527
  631
  745
  850
  988
  1,138
  1,298
  1,469
  1,651
  1,843
  2,046
  2,258
  2,480
  2,712
  2,954
  3,205
  3,467
  3,740
  4,023
  4,317
  4,623
  4,941
  5,271
Funds from operations, $m
  285
  695
  1,211
  1,847
  2,613
  3,517
  4,566
  5,765
  7,116
  8,620
  10,269
  12,075
  14,028
  16,125
  18,362
  20,737
  23,245
  25,886
  28,656
  31,555
  34,582
  37,738
  41,025
  44,444
  48,000
  51,696
  55,537
  59,530
  63,680
  67,996
Change in working capital, $m
  -348
  -447
  -560
  -686
  -824
  -972
  -1,127
  -1,287
  -1,450
  -1,614
  -1,777
  -1,939
  -2,098
  -2,253
  -2,405
  -2,553
  -2,698
  -2,840
  -2,980
  -3,119
  -3,257
  -3,396
  -3,537
  -3,679
  -3,826
  -3,976
  -4,132
  -4,294
  -4,463
  -4,639
Cash from operations, $m
  633
  1,141
  1,771
  2,534
  3,437
  4,489
  5,693
  7,052
  8,566
  10,233
  12,047
  14,014
  16,126
  18,378
  20,767
  23,290
  25,943
  28,726
  31,636
  34,674
  37,839
  41,134
  44,561
  48,124
  51,826
  55,672
  59,669
  63,824
  68,143
  72,635
Maintenance CAPEX, $m
  -61
  -85
  -117
  -157
  -206
  -265
  -334
  -414
  -506
  -609
  -724
  -850
  -988
  -1,138
  -1,298
  -1,469
  -1,651
  -1,843
  -2,046
  -2,258
  -2,480
  -2,712
  -2,954
  -3,205
  -3,467
  -3,740
  -4,023
  -4,317
  -4,623
  -4,941
New CAPEX, $m
  -123
  -159
  -199
  -244
  -293
  -346
  -401
  -458
  -516
  -575
  -633
  -690
  -747
  -802
  -856
  -909
  -961
  -1,011
  -1,061
  -1,110
  -1,160
  -1,209
  -1,259
  -1,310
  -1,362
  -1,416
  -1,471
  -1,529
  -1,589
  -1,652
Cash from investing activities, $m
  -184
  -244
  -316
  -401
  -499
  -611
  -735
  -872
  -1,022
  -1,184
  -1,357
  -1,540
  -1,735
  -1,940
  -2,154
  -2,378
  -2,612
  -2,854
  -3,107
  -3,368
  -3,640
  -3,921
  -4,213
  -4,515
  -4,829
  -5,156
  -5,494
  -5,846
  -6,212
  -6,593
Free cash flow, $m
  449
  897
  1,455
  2,132
  2,938
  3,878
  4,958
  6,180
  7,544
  9,050
  10,690
  12,473
  14,390
  16,438
  18,613
  20,911
  23,332
  25,872
  28,530
  31,306
  34,200
  37,214
  40,349
  43,608
  46,996
  50,517
  54,175
  57,978
  61,931
  66,043
Issuance/(repayment) of debt, $m
  1,015
  1,304
  1,634
  2,003
  2,406
  2,836
  3,288
  3,755
  4,231
  4,710
  5,187
  5,659
  6,123
  6,576
  7,019
  7,452
  7,875
  8,290
  8,698
  9,103
  9,507
  9,913
  10,322
  10,739
  11,166
  11,605
  12,060
  12,532
  13,025
  13,541
Issuance/(repurchase) of shares, $m
  137
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
Cash from financing (excl. dividends), $m  
  1,152
  1,304
  1,634
  2,003
  2,406
  2,836
  3,288
  3,755
  4,231
  4,710
  5,187
  5,659
  6,123
  6,576
  7,019
  7,452
  7,875
  8,290
  8,698
  9,103
  9,507
  9,913
  10,322
  10,739
  11,166
  11,605
  12,060
  12,532
  13,025
  13,541
Total cash flow (excl. dividends), $m
  1,601
  2,201
  3,089
  4,135
  5,344
  6,715
  8,246
  9,935
  11,775
  13,760
  15,878
  18,132
  20,513
  23,014
  25,632
  28,363
  31,206
  34,161
  37,228
  40,409
  43,707
  47,126
  50,671
  54,347
  58,162
  62,122
  66,235
  70,510
  74,957
  79,584
Retained Cash Flow (-), $m
  -315
  -407
  -510
  -626
  -751
  -886
  -1,027
  -1,173
  -1,322
  -1,471
  -1,620
  -1,768
  -1,912
  -2,054
  -2,192
  -2,327
  -2,460
  -2,589
  -2,717
  -2,843
  -2,969
  -3,096
  -3,224
  -3,354
  -3,487
  -3,625
  -3,767
  -3,914
  -4,068
  -4,229
Prev. year cash balance distribution, $m
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
Cash flow adjustment, $m
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
Cash available for distribution, $m
  1,286
  1,794
  2,579
  3,510
  4,592
  5,829
  7,219
  8,762
  10,454
  12,289
  14,257
  16,365
  18,601
  20,960
  23,440
  26,036
  28,747
  31,572
  34,511
  37,566
  40,738
  44,030
  47,447
  50,993
  54,675
  58,497
  62,469
  66,596
  70,888
  75,355
Discount rate, %
  4.30
  4.52
  4.74
  4.98
  5.23
  5.49
  5.76
  6.05
  6.35
  6.67
  7.00
  7.35
  7.72
  8.11
  8.51
  8.94
  9.39
  9.86
  10.35
  10.87
  11.41
  11.98
  12.58
  13.21
  13.87
  14.56
  15.29
  16.05
  16.86
  17.70
PV of cash for distribution, $m
  1,233
  1,642
  2,244
  2,890
  3,559
  4,230
  4,877
  5,477
  6,005
  6,443
  6,771
  6,983
  7,072
  7,037
  6,881
  6,616
  6,255
  5,814
  5,314
  4,773
  4,214
  3,653
  3,110
  2,597
  2,127
  1,707
  1,341
  1,030
  774
  567
Current shareholders' claim on cash, %
  98.3
  98.3
  98.3
  98.3
  98.3
  98.3
  98.3
  98.3
  98.3
  98.3
  98.3
  98.3
  98.3
  98.3
  98.3
  98.3
  98.3
  98.3
  98.3
  98.3
  98.3
  98.3
  98.3
  98.3
  98.3
  98.3
  98.3
  98.3
  98.3
  98.3

ServiceNow, Inc. is provider of enterprise cloud computing solutions that define, structure, manage and automate services for global enterprises. The Company offers a set of cloud-based services that automate workflow within and between departments in an enterprise. It provides workflow solutions, and focuses on service management for customer support, human resources, security operations and other enterprise departments. The platform also enables customers to create, by themselves or with its partners, their own service-oriented business applications throughout the enterprise. The Company delivers its software through the Internet as a service. It markets its services to enterprises in a range of industries, including financial services, consumer products, information technology services, healthcare, government, education and technology. It operates data centers in Australia, Brazil, Canada, Hong Kong, the Netherlands, Singapore, Switzerland, the United Kingdom and the United States.

FINANCIAL RATIOS  of  ServiceNow (NOW)

Valuation Ratios
P/E Ratio -64.1
Price to Sales 20.8
Price to Book 74.8
Price to Tangible Book
Price to Cash Flow 181
Price to Free Cash Flow 804.5
Growth Rates
Sales Growth Rate 38.4%
Sales - 3 Yr. Growth Rate %
EPS Growth Rate %
EPS - 3 Yr. Growth Rate %
Capital Spending Gr. Rate 39.3%
Cap. Spend. - 3 Yr. Gr. Rate 17.7%
Financial Strength
Quick Ratio NaN
Current Ratio 0.1
LT Debt to Equity 131.3%
Total Debt to Equity 131.3%
Interest Coverage 0
Management Effectiveness
Return On Assets -23.5%
Ret/ On Assets - 3 Yr. Avg. -16.5%
Return On Total Capital -46.7%
Ret/ On T. Cap. - 3 Yr. Avg. -29.5%
Return On Equity -94.8%
Return On Equity - 3 Yr. Avg. -59.3%
Asset Turnover 0.7
Profitability Ratios
Gross Margin 71.3%
Gross Margin - 3 Yr. Avg. 67.4%
EBITDA Margin -26.4%
EBITDA Margin - 3 Yr. Avg. -19.7%
Operating Margin -30.3%
Oper. Margin - 3 Yr. Avg. -23%
Pre-Tax Margin -32.4%
Pre-Tax Margin - 3 Yr. Avg. -25.8%
Net Profit Margin -32.5%
Net Profit Margin - 3 Yr. Avg. -26.1%
Effective Tax Rate -0.4%
Eff/ Tax Rate - 3 Yr. Avg. -1.6%
Payout Ratio 0%

NOW stock valuation input parameters

Revenue. Company's revenue (or sales) is always the starting point of any cash flow forecast. In the NOW stock intrinsic value calculation we used $1933.026 million for the last fiscal year's total revenue generated by ServiceNow. The default revenue input number comes from 0001 income statement of ServiceNow. You may change it if you feel that it should be adjusted for some unusual circumstances that are not expected to be repeated in the future or if you already know (from interim financial statements, for example) that this year's revenue is going to be quite different.

Revenue growth rate. Forecasted future revenue growth rate is the most important input parameter for the intrinsic value calculation. Unlike other input parameters that are reasonably expected to be in line with their historic averages or their historic trends, the revenue growth rate by and large is a wild card: nobody really knows what the company's revenue will be in the future. Of course, the level of unpredictability is different for different industries (utility companies being the most predictable and, thus, less risky).
    We use three input parameters to forecast the revenue growth rate in our NOW stock valuation model: a) initial revenue growth rate of 40.8% whose default value is the revenue growth rate in the most recent quarter compared to the quarterly revenue a year ago; b) terminal revenue growth rate of 5% whose default value is chosen to be close to the average nominal (i.e. not adjusted for inflation) GDP growth rate; and c) revenue decline factor of 0.9, which stipulates that revenue growth rate in each forecasted year will be equal to the difference of the revenue growth rate in the preceding year and the terminal revenue growth rate multiplied by this revenue decline factor (with the passage of time the revenue growth rate will be approaching the terminal revenue growth rate, but not quite reaching it - though the difference could be infinitesimally small).
    At the revenue decline factor of 1, the future revenue growth rate is forecasted to be constant and equal to the initial revenue growth rate. The smaller the revenue decline factor, the faster the revenue growth rate will approach the terminal revenue growth.

Discount rate. The discount rate is used for determining the present value of future cash flows: future cash flows are "discounted" as at normal conditions (that translate into positive expected return on investment) one dollar today is worth more than the same dollar in the future. Unlike all other valuation models, we use variable discount rate, i.e. it increases for each consecutive year. This is done to account for higher risk of cash flows coming in further in the future.
    The initial discount rate of 4.3%, whose default value for NOW is calculated based on our internal credit rating of ServiceNow, is applied to the cash flow expected to be received a year from now (well, actually, to be precise, in the financial year following the base year - the last year for which we have financial statements). For each consecutive year the discount rate is multiplied by the discount rate multiplier of 1.05, e.i. each year it increases by 5%. Feel free to change this number to correspond to your level of risk assessment of ServiceNow.
    By the way, it is easy to set the discount rate to be constant (this would make comparison with other valuation models easier): just set the discount rate multiplier equal to 1 and chose the magnitude of the initial discount rate to your liking.

Variable cost ratio is the ratio of variable costs (i.e. costs that fluctuate with fluctuation of the volume of production) to the revenue expressed as a percentage. In the calculation of intrinsic value of NOW stock the variable cost ratio is equal to 40.8%.

Fixed operating expenses is just that - expenses that are not dependant on the volume of production. They are set to $1273 million in the base year in the intrinsic value calculation for NOW stock. These expenses increase with the level of inflation in subsequent years.

Interest rate on debt is the average all-in rate of interest paid by the company on its debt. It is set at 6.4% for ServiceNow.

Corporate tax rate of 27% is the nominal tax rate for ServiceNow. In reality, companies find ways to pay much less taxes than that or not to pay them at all.

Cash flow adjustment could be used for any adjustment the investor deems necessary. Most commonly we use this field to account for stock options-related effects in excess of what is reported on the company's income statement. The cash flow adjustment is expressed as a percentage of the revenue, and in the current valuation of the NOW stock is equal to 0%.

Production assets are the company's assets used for manufacturing products or provision of services. In the valuation model input table they are expressed as a percentage of revenue and for NOW are equal to 15.7%.

Life of production assets of 3.5 years is the average useful life of capital assets used in ServiceNow operations. It is used to calculate yearly capital expenditures needed to keep these assets in good order - we call it the maintenance CAPEX.

Working capital is the difference between the company's current assets and liabilities. In the model we use the ratio of working capital to revenue, which for NOW is equal to -44.1%. A negative number means that the company is apt at using financial resources of its suppliers and customers; a large positive number, on the other hand, means that it either provides in-kind financing to others or is not good at managing its inventories.

Book value of equity - $778.744 million for ServiceNow - is used in calculation of the "floor" for intrinsic valuation based on the discounted cash flow (DCF) method. Even if the prospects are very bad for a company, its assets could always be sold now for their current fair market value.

Shares outstanding of 177.946 million for ServiceNow is needed to calculate the intrinsic value of one share.

Market capitalization is used here only for reference purposes and as a quick check that the share price and the number of shares outstanding numbers are correct - something especially to be cognizant about at stock splits. So, the market capitalization of ServiceNow at the current share price and the inputted number of shares is $30.8 billion.

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▶ ServiceNow Stock Up As Earnings Beat, Billings Outlook Light   [05:16PM  Investor's Business Daily]
▶ ServiceNow: 3Q Earnings Snapshot   [04:59PM  Associated Press]
▶ Device42 Launches Integration with ServiceNow   [Oct-23-18 09:00AM  PR Newswire]
▶ Nasdaq Up; Will These 3 Sectors Lead A Market Turnaround?   [Oct-22-18 03:03PM  Investor's Business Daily]
▶ ServiceNow Invests for Growth in Japan   [Oct-17-18 12:00PM  Business Wire]
▶ The Funded: $500M in funding, a new unicorn and 3 M&A deals at the end of the week   [Oct-12-18 02:17PM  American City Business Journals]
▶ [$$] ServiceNow Buys Newly Seeded FriendlyData   [06:17PM  The Wall Street Journal]
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▶ Amazon, Nvidia, These Tech Leaders Retake This Key Level   [Sep-24-18 04:08PM  Investor's Business Daily]
▶ Is ServiceNow Inc (NYSE:NOW) A Financially Sound Company?   [Sep-18-18 02:32PM  Simply Wall St.]
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▶ ServiceNow to Present at Upcoming Investor Conferences   [Aug-09-18 08:00AM  Business Wire]
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▶ ServiceNow: 2Q Earnings Snapshot   [Jul-25-18 04:56PM  Associated Press]
▶ ServiceNow, Inc. to Host Earnings Call   [03:00PM  ACCESSWIRE]
▶ At US$0176.7, Is ServiceNow Inc (NYSE:NOW) A Buy?   [Jun-26-18 11:09AM  Simply Wall St.]
▶ How Atlassian Stacks Up Versus ServiceNow, Microsoft In Enterprise   [Jun-14-18 04:22PM  Investor's Business Daily]
▶ CIOs Play Growing Leadership Role, ServiceNow CEO John Donahoe Says   [Jun-13-18 05:19PM  The Wall Street Journal]
▶ ServiceNow Stock: Why We Are NOW Cautious   [Jun-08-18 02:22PM  TheStreet.com]
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▶ George Soros-backed fund buys $35M in Tesla bonds, ups stakes in Alphabet and Netflix   [May-16-18 10:12AM  American City Business Journals]
▶ Josh Brown: Why I bought ServiceNow   [01:55PM  CNBC Videos]

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