Uncovering the Strategies of Savvy ServiceNow (NOW) Investors

By Blake Campbell • Wednesday, November 22 16:59 • Permanent Link

ServiceNow logged a 0.2% change during today's evening session, and is now trading at a price of $669.66 per share. The S&P 500 index moved 0.0%. NOW's trading volume is 794,277 compared to the stock's average volume of 1,126,751.

ServiceNow trades 2.95% away from its average analyst target price of $650.49 per share. The 35 analysts following the stock have set target prices ranging from $545.0 to $725.0, and on average have given ServiceNow a rating of buy.

Anyone interested in buying NOW should be aware of the facts below:

ServiceNow's current price is 823.9% above its Graham number of $72.48, which implies that at its current valuation it does not offer a margin of safety
ServiceNow has moved 64.0% over the last year, and the S&P 500 logged a change of 14.0%
Based on its trailing earnings per share of 7.75, ServiceNow has a trailing 12 month Price to Earnings (P/E) ratio of 86.4 while the S&P 500 average is None
NOW has a forward P/E ratio of 52.6 based on its forward 12 month price to earnings (EPS) of $12.72 per share
The company has a price to earnings growth (PEG) ratio of 2.4 — a number near or below 1 signifying that ServiceNow is fairly valued compared to its estimated growth potential
Its Price to Book (P/B) ratio is 19.07 compared to its sector average of None
ServiceNow, Inc. provides enterprise cloud computing solutions that defines, structures, consolidates, manages, and automates services for enterprises worldwide.
Based in Santa Clara, the company has 20,433 full time employees and a market cap of $137.32 Billion.

The above analysis is intended for educational purposes only and was performed on the basis of publicly available data. It is not to be construed as a recommendation to buy or sell any security. Any buy, sell, or other recommendations mentioned in the article are direct quotations of consensus recommendations from the analysts covering the stock, and do not represent the opinions of Market Inference or its writers. Past performance, accounting data, and inferences about market position and corporate valuation are not reliable indicators of future price movements. Market Inference does not provide financial advice. Investors should conduct their own review and analysis of any company of interest before making an investment decision.