ServiceNow Inc. (NOW) Stock

ServiceNow Inc. trades at a P/E ratio of 117.61, 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 46.51 is lower than the current P/E, indicating analysts expect earnings to grow over the next year. The PEG ratio of 1.77 indicates reasonable value when growth is considered.

With a beta of 0.91, 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 17.77 shows investors value the company above its book value, which often reflects intangible assets or growth prospects.

ServiceNow Inc. achieves a profit margin of 13.80%, meaning it retains $13.80 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 12.10% reveals how efficiently the company runs its core business operations before interest and taxes. With ROE at 17.00% and ROA at 5.17%, the company generates strong returns on invested capital.

ServiceNow Inc.'s revenue grew by 22.40% 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 46.00% year-over-year, outpacing revenue growth through improved margins. These growth metrics should be evaluated against SOFTWARE - APPLICATION industry averages for proper context.

ServiceNow Inc. has a market capitalization of $195.2B, 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 207.52M 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 $52.68, while the current stock price is $925.75, resulting in a price-to-book (P/B) ratio of 17.57. 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 $1,147.84 implies 24.0% upside, but targets are often adjusted to follow price moves rather than predict them.

Current analyst recommendations:8 Strong Buy, 33 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.