ServiceNow Inc. (NOW) Stock

ServiceNow Inc. trades at a P/E ratio of 138.92, 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 61.73 is lower than the current P/E, indicating analysts expect earnings to grow over the next year. The PEG ratio of 2.28 indicates a premium valuation even accounting for growth.

With a beta of 0.96, 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 20.89 shows investors value the company above its book value, which often reflects intangible assets or growth prospects.

ServiceNow Inc. achieves a profit margin of 13.40%, meaning it retains $13.40 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 14.60% reveals how efficiently the company runs its core business operations before interest and taxes. With ROE at 16.90% and ROA at 4.92%, the company generates strong returns on invested capital.

ServiceNow Inc.'s revenue grew by 18.60% year-over-year, showing steady progress in growing the business. This positive trajectory indicates the company maintains competitive positioning in its markets. Earnings increased by 31.70% year-over-year, outpacing revenue growth through improved margins. These growth metrics should be evaluated against SERVICES-PREPACKAGED SOFTWARE industry averages for proper context.

ServiceNow Inc. has a market capitalization of $211.80B, classifying it as a mega-cap stock (over $200B). These are the largest, most established companies globally, typically offering stability and liquidity but with more modest growth potential. Mega-caps often pay dividends and weather economic downturns better than smaller companies. With 207.15M shares outstanding, the company's ownership is relatively concentrated. As a major player in the SERVICES-PREPACKAGED SOFTWARE industry, it competes with other firms in this sector.

ServiceNow Inc.'s book value per share is $48.99, while the current stock price is $962.51, resulting in a price-to-book (P/B) ratio of 19.65. 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.

47 analysts cover NOW with 87% 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 $1,089.87 implies 13.2% upside, but targets are often adjusted to follow price moves rather than predict them.

Current analyst recommendations:10 Strong Buy, 31 Buy, 5 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.

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