Verdict
Undervalued
What is ServiceNow, Inc. (NOW) worth?
Currently $102.06 — 20% discount to Dolphy’s fair value · ● live
Steady operator
medium confidence in the point estimate
● live · as of 2026-07-21 21:13 · Market cap $108.5B
As of 2026-07-15, ServiceNow, Inc. (NOW) looks undervalued. Dolphy estimates a fair value of $127.00 versus a current price of $102.06 — a 20% discount to fair value.
Executive summary
ServiceNow remains a best-in-class, mission-critical enterprise workflow platform compounding revenue north of 20% with expanding margins and $4.5B+ of free cash flow. The thesis from our prior note is intact: structural switching costs, 97% renewals, 630 customers spending >$5M ACV (up from 516 a year ago), and $27.7B of RPO underwriting forward revenue with unusual visibility.
What changed since 24-Jun is price, not fundamentals. NOW has de-rated to ~$105 (~7.5x EV/revenue), below its own history and below several lower-quality SaaS peers. The reverse-DCF makes the mispricing concrete: the current price implies just ~10% forward FCF growth, versus the ~16-20% the backlog supports. We hold fair value at $127 (from $128), implying the shares trade at a ~17% discount to intrinsic value. Confidence is medium — the main swing factors are AI's effect on seat-based pricing and the pace of SBC dilution, both of which we underwrite explicitly.
How we value it
DCF + peer comps (EV/revenue), with an SBC-adjusted FCF downside floor and a reverse-DCF cross-check
Every figure is computed from SEC filings by the analyst’s calculator tools and fact-checked by a second, independent model.
Investment thesis
About ServiceNow, Inc.
ServiceNow, Inc. provides cloud-based solution for digital workflows in the North America, Europe, the Middle East and Africa, Asia Pacific, and internationally. The company provides asset management, integrated risk management, IT service management, Operational Technology management, Security Operations, strategic portfolio management, IT operations management products; customer service management product; field service management applications; and sales and order management services. It also offers human resources delivery; legal and contract operations; workplace service delivery products; app engine product; automation engine; platform privacy and security product; and source-to-pay operations. In addition, the company provides RaptorDB, a database built to manage workloads at scale; ServiceNow Impact that provides customers with software tools, guided plans, and AI-driven recommendations; customer support; and workflow data fabric. It serves government, financial services, healthcare and life science, manufacturing, Public Sector, retail, technology, and Telecom sectors through service providers and resale partners. The company has a strategic collaboration with Cohesity, Inc. to develop, operate, and safeguard autonomous AI agents and data with enterprise-grade reliability; and with ServiceNow to Advance Ai-Powered Solution for Mission-Critical Infrastructure Monitoring. The company was formerly known as Service-now.com and changed its name to ServiceNow, Inc. in May 2012. ServiceNow, Inc. has a strategic alliance with Accenture for integrated risk management and third-party risk management solutions. ServiceNow, Inc. was founded in 2004 and is headquartered in Santa Clara, California.
Frequently asked questions
Is NOW a buy?
As of 2026-07-15, ServiceNow, Inc. (NOW) looks undervalued. Dolphy estimates a fair value of $127.00 versus a current price of $102.06 — a 20% discount to fair value.
What is NOW's fair value?
Dolphy's estimated fair value for ServiceNow, Inc. (NOW) is $127.00, versus a current market price of $102.06.
Is NOW overvalued or undervalued?
ServiceNow, Inc. (NOW) currently looks undervalued — trading at a 20% discount to Dolphy's estimated fair value of $127.00.
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AI-generated research by Dolphy for educational and informational purposes only — not investment advice. Figures are computed from public sources and may contain errors.