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DCF Valuation
Base-case fair value
$170.66
Intrinsic $227.54 · 25% MOS
Current price: $95.04
Base-case summary
Our base-case DCF for ServiceNow, Inc. (NOW) projects 10 years of free cash flow growth at 20.0% for years 1–5 and 10.0% for years 6–10, anchored to 20.8% historical FCF growth, then applies a 2.5% perpetual growth rate and a 8.0% discount rate. Starting from $4.6B in trailing free cash flow, this produces an intrinsic value of $227.54 per share. A 25% safety margin gives a fair value of $170.66, suggesting the stock is currently 80% undervalued against the $95.04 market price.
See 3 scenarios side by side
Conservative, Base, and Optimistic fair values, plus the sensitivity matrix and FCF history. Free account.
Model inputs
TTM Free Cash Flow
$4.6B
Cash & equivalents
$5.2B
Total debt
$2.4B
Shares outstanding
1.0B