Stock Analysis on Net

ServiceNow Inc. (NYSE:NOW)

$24.99

Price to Operating Profit (P/OP)
since 2012

Microsoft Excel

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Calculation

ServiceNow Inc., P/OP, long-term trends, calculation

Microsoft Excel

Based on: 10-K (reporting date: 2024-12-31), 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31), 10-K (reporting date: 2018-12-31), 10-K (reporting date: 2017-12-31), 10-K (reporting date: 2016-12-31), 10-K (reporting date: 2015-12-31), 10-K (reporting date: 2014-12-31), 10-K (reporting date: 2013-12-31), 10-K (reporting date: 2012-12-31).

1 US$

2 Data adjusted for splits and stock dividends.

3 Closing price as at the filing date of ServiceNow Inc. Annual Report.


Share price trend
The share price exhibited a general upward trajectory throughout the analyzed period, rising from $7.33 in early 2013 to $202.55 by early 2025. Notable increases occurred between 2016 and 2021, with the price peaking at $118.26 in February 2021. Despite some fluctuations, including periods of slight decline such as from 2021 to 2023, the overall trend indicates significant growth in market valuation over the years.
Operating profit per share (OP) trend
Operating profit per share showed initial negative values from 2013 through 2019, highlighting consistent operating losses during these years. There was a marked improvement starting in 2020 when OP turned positive at $0.04 and continued to increase steadily, reaching $1.32 by early 2025. This shift from losses to profitability represents an important development in operational efficiency and financial health.
P/OP ratio trend
The price-to-operating-profit ratio, available from 2020 onward, showed a decreasing pattern from 1590.34 in 2020 to 152.95 in 2025. This decline signals that the share price, though increasing, became more aligned with improving operating profits, reducing the previously extreme premium over operating earnings. The ratio's substantial decline suggests growing investor confidence in the company's ability to generate operating profits at higher levels.
Overall insights
The data illustrate strong share price growth accompanied by a transition from operating losses to profitability. This improvement is reflected in declining P/OP ratios, indicating that the market valuation became more justified by improving operational results. The progression suggests that operational improvements and profitability gains significantly contributed to enhanced investor perceptions and valuation multiples.

Comparison to Competitors

ServiceNow Inc., P/OP, long-term trends, comparison to competitors

Microsoft Excel

Based on: 10-K (reporting date: 2024-12-31), 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31), 10-K (reporting date: 2018-12-31), 10-K (reporting date: 2017-12-31), 10-K (reporting date: 2016-12-31), 10-K (reporting date: 2015-12-31), 10-K (reporting date: 2014-12-31), 10-K (reporting date: 2013-12-31), 10-K (reporting date: 2012-12-31).