ServiceNow Inc. (NYSE:NOW)

The financial data reveals several notable trends regarding market valuation and profitability metrics over the examined period.

Share Price

The share price demonstrates a general upward trajectory spanning from 7.33 US$ in early 2013 to 202.55 US$ in early 2025. This increase includes periods of accelerated growth, particularly from 2017 onwards, where the price rose sharply from 17.38 US$ to 118.26 US$ by early 2021. Despite a dip to 91.03 US$ in early 2023, the price rebounded strongly, reaching its highest value in 2025. This trend reflects a significant appreciation in market value over the 12-year timeframe.

Earnings Per Share (EPS)

Initially, EPS values were negative from 2013 to 2019, indicating losses with a peak negative value of -0.54 US$ in 2017. Starting from 2019, a transition toward positive earnings is observed, with EPS turning positive at 0.66 US$ and maintaining positive values through to 2025, where it peaks at 1.69 US$ in 2024 before slightly decreasing to 1.38 US$ in 2025. This shift suggests improving profitability, moving from consistent losses into earnings generation.

Price-to-Earnings (P/E) Ratio

P/E ratios are only available starting in 2020 and exhibit high volatility. The ratio spikes to 106.89 in 2020, surges dramatically to 978.49 in 2021, and then decreases progressively to 90.8 by 2024 before increasing again to 146.4 in 2025. The elevated and fluctuating P/E ratios reflect market expectations of future growth, potentially influenced by the transition period from negative to positive earnings and investor sentiment regarding the company's potential.

In summary, the data suggests a company evolving from loss-making from 2013 to 2019 with increasing market valuation, followed by a period of improving profitability from 2020 onwards. Market valuation, as reflected in share price and P/E ratios, has grown considerably, albeit with some volatility in valuation multiples likely driven by changing earnings dynamics and investor expectations.