ServiceNow Inc (NOW) Stock

ServiceNow Inc trades at a P/E ratio of 103.15, which is above the market average of approximately 20. This premium valuation suggests investors expect above-average growth or the company has competitive advantages justifying the higher multiple. Looking ahead, the forward P/E of 41.49 is lower than the current P/E, indicating analysts expect earnings to grow over the next year. The PEG ratio of 1.55 indicates reasonable value when growth is considered.

With a beta of 0.97, ServiceNow Inc is less volatile than the overall market. This means when the market moves up or down by 10%, this stock typically moves less than 10% in the same direction. Lower beta stocks are often preferred by conservative investors seeking stability. The price-to-book ratio of 15.67 shows investors value the company above its book value, which often reflects intangible assets or growth prospects.

ServiceNow Inc achieves a profit margin of 13.70%, meaning it retains $13.70 from every $100 in revenue after all expenses. This represents a solid margin typical of well-run businesses, showing the company can effectively balance revenue generation with cost control. The operating margin of 16.80% reveals how efficiently the company runs its core business operations before interest and taxes. With ROE at 16.80% and ROA at 5.65%, the company generates strong returns on invested capital.

ServiceNow Inc's revenue grew by 21.80% year-over-year, representing robust expansion that significantly outpaces typical market growth rates. This strong top-line performance suggests the company is successfully capturing market share or benefiting from favorable industry trends. Earnings increased by 15.90% year-over-year, reflecting the bottom-line impact of business performance. These growth metrics should be evaluated against SOFTWARE - APPLICATION industry averages for proper context.

ServiceNow Inc has a market capitalization of $180.6B, classifying it as a large-cap stock ($10B-$200B). Large-caps are typically industry leaders with established business models, offering a balance of stability and growth potential. They often provide dividend income and are core holdings in institutional portfolios. With 207.48M shares outstanding, the company's ownership is relatively concentrated. As a major player in the SOFTWARE - APPLICATION industry, it competes with other firms in this sector.

ServiceNow Inc's book value per share is $54.45, while the current stock price is $819.50, resulting in a price-to-book (P/B) ratio of 15.05. This high P/B ratio indicates significant intangible assets, strong brand value, or high growth expectations. Technology and consumer brand companies often trade at elevated P/B ratios due to intellectual property and competitive advantages not reflected on the balance sheet. As a common stock, this represents equity ownership with voting rights.

46 analysts cover NOW with 89% recommending buy/strong buy ratings. Analyst predictions have mixed reliability - studies show consensus rarely beats market returns consistently. The strong bullish consensus may already be priced in. The consensus target of $1,151.38 implies 40.5% upside, but targets are often adjusted to follow price moves rather than predict them.

Current analyst recommendations:9 Strong Buy, 32 Buy, 4 Hold, 1 Sell, 0The bullish tilt suggests optimism about future prospects, though investors should conduct independent research.Remember that analyst opinions often lag price movements and can be influenced by investment banking relationships.