Market Pulse50Neutral

ServiceNow, Inc.Opportunity Rank #34(NOW) Intrinsic Value & DCF Analysis (2026)

Sector: Technology

Current Price

$110.95

Last updated: Mar 24, 2026

Price vs Intrinsic Value

$110.95
Price
$152.66
Intrinsic Value
Undervalued by 38%MOS: $122.13

Fundamental Score

80/100
Bullish

Weighted across 6 signals

Narrative Score

80/100
Strong

No change vs previous

The intrinsic value of ServiceNow, Inc. (NOW) is estimated at $152.66 per share based on a 10-year discounted cash flow (DCF) analysis. At the current price of $110.95, the stock appears undervalued relative to its projected cash flow fundamentals. This estimate assumes a 9.48% long-term growth rate and an 8.89% discount rate, reflecting expected future free cash flow and cost of capital.

The intrinsic value of ServiceNow, Inc. (NOW) is estimated at $152.66 per share based on a 10-year discounted cash flow (DCF) analysis. At the current price of $110.95, the stock appears undervalued relative to its projected cash flow fundamentals. This estimate assumes a 9.48% long-term growth rate and an 8.89% discount rate, reflecting expected future free cash flow and cost of capital.

Valuation Details

$152.66
37.59% upside
20% margin of safety: $122.13
Years: 10Growth Rate: 9.48%
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Capital Efficiency

Average Quarterly ROIC
6.58%
Cost of Capital (estimated)9%
Value StatusUnderperforming Capital

The company is earning below its required return. This may indicate inefficient use of capital or excess cash that isn't being reinvested.

Complete historical ROIC is available with
.

Fundamental Details

80/100
BullishWeighted across 6 signals
DCF Discount
37.6% discount to price
100
FCF Yield
5.4% trailing FCF yield
86
ROIC vs WACC
ROIC 6.6% vs WACC 9.0% (0.7x)
37
Net Debt / FCF
Net cash position
100
Buybacks
Share count shrinking
80
FCF CAGR (5Y)
23.3% 5Y FCF CAGR
100
Strengths: DCF Discount, FCF Yield. Concerns: ROIC vs WACC.

Narrative Details

80/100
Strong
Vs 6-Month Baseline:High (93rd pct)Weighted across 5 recent drivers
Trend: StableConfidence: 100%Updated: 1h ago
Sources: 225 (200 News · 25 Analyst)
Drivers(last 30 days)
46 regulatory scrutiny+5.0
150 news sentiment+0.7
3 upgrade headlines+0.2
Downgrade headlines-0.0
25 analyst reiterations0.0

Investment Coach

Updated 17h ago
BUYConfidence: 72%
Thesis
ServiceNow, Inc. is undervalued with an estimated fair value 42.5% above its current price, supported by strong fundamentals and a bullish narrative. The company demonstrates robust free cash flow growth and effective buybacks, indicating solid long-term growth potential.
Key Risk
Returns are currently trailing the estimated cost of capital, which may pressure valuation if not improved.
Signals To Watch
  • Monitor whether valuation discount remains above 10%.
  • Track ROIC versus WACC spread for sustained improvement.
  • Follow narrative trend for meaningful shifts in the score direction.
Ask the Coach - Available with
Historical Growth Rates
Free Cash Flow- - -Trend CAGR: 9.48%5 Year CAGR: 19.50%

Free Cash Flow (in millions)

TTM20252024202320222021202020192018201720162015201420132012201120102009
$6,312$6,312$5,119$4,092$3,273$2,590$2,219$1,574$1,060$800$288$404$193$137$91$46-$6$1

How Intrinziq Estimates Fair Value

Intrinziq estimates ServiceNow, Inc.'s intrinsic value using a discounted cash flow (DCF) model based on free cash flow trends and a market-based discount rate. The model projects future cash flows over ten years and discounts them using a market return assumption to estimate fair value.

ServiceNow, Inc.Technology

ServiceNow, Inc. provides enterprise cloud computing solutions that defines, structures, consolidates, manages, and automates services for enterprises worldwide. It operates the Now platform for workflow automation, artificial intelligence, machine learning, robotic process automation, performance analytics, electronic service catalogs and portals, configuration management systems, data benchmarking, encryption, and collaboration and development tools. The company also provides information technology (IT) service management applications; IT service management product suite for enterprise's employees, customers, and partners; IT business management product suite; IT operations management product that connects a customer's physical and cloud-based IT infrastructure; IT Asset Management to automate IT asset lifecycles; and security operations that connects with internal and third party. In addition, it offers governance, risk, and compliance product to manage risk and resilience; human resources, legal, and workplace service delivery products; safe workplace applications; customer service management product; and field service management applications. Further, it provides App Engine product; IntegrationHub enables application to extend workflows; and professional, industry solutions, and customer support services. It serves government, financial services, healthcare, telecommunications, manufacturing, IT services, technology, oil and gas, education, and consumer products through direct sales team and resale partners. It has a strategic partnership with Celonis to help customers identify and prioritize processes that are suitable for automation. The company was formerly known as Service-now.com and changed its name to ServiceNow, Inc. in May 2012. The company was founded in 2004 and is headquartered in Santa Clara, California.