ServiceNow (NOW) fundamentals: P/E, valuation, undervalued?

ServiceNow · Information Technology · ref. ETF XLK · price $138.43
Logo ServiceNowSee the full ServiceNow (NOW) profile
In short — ServiceNow trades at 78.7× earnings (P/E), 27.7× forward, with a net margin of 11.3 % and revenue growth of +24 %. Read: Fairly valued (P/E 28 in line with ~24% growth (PEG 1.2)).

Is ServiceNow stock cheap or undervalued? A good time to buy? Here are its fundamentals — P/E, PEG, margin and income statement — to judge its valuation.

📈 1-year price
$138.43-25.5% over range
Aug 28, 25low $83 · high $192.23Aug 27, 26
📏 Click 2 points (left → right) to measure the change · click again to clear.
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Buy
87% recommend buying · 31 analysts
Valuation : Fairly valued — P/E 28 in line with ~24% growth (PEG 1.2)

Valuation

78.7
P/E (price/earnings)
27.7
Forward P/E
PEG
11.4
Price/book (P/B)
$143.1B
Market cap
1.76
EPS

Profitability & growth

11.3 %
Net margin
+24 %
Revenue growth
-22 %
Earnings growth
$8.5B
Total debt

ServiceNow income statement

Fiscal yearRevenueNet incomeMargin
2022$7.2B$325M4.5 %
2023$9.0B$1.7B19.3 %
2024$11.0B$1.4B13.0 %
2025$13.3B$1.7B13.2 %
⚠️ Indicative financial data (Yahoo Finance), not investment advice. Amounts in $.

Frequently asked questions

What is ServiceNow's P/E and is the stock undervalued? What's a good P/E?

ServiceNow's P/E is 78.7 (forward 27.7). Below ~15 = fairly cheap, above ~30 = expensive. Our valuation verdict: "Fairly valued".

Is ServiceNow profitable?

ServiceNow has a net margin of 11.3 % (EPS 1.76). The company is profitable.

Is NOW stock expensive?

Our read: "Fairly valued" — P/E 28 in line with ~24% growth (PEG 1.2). Cross-check with growth and sector.

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