Stock Analysis on Net

ServiceNow Inc. (NYSE:NOW)

Enterprise Value to EBITDA (EV/EBITDA)

Microsoft Excel LibreOffice Calc

Earnings before Interest, Tax, Depreciation and Amortization (EBITDA)

ServiceNow Inc., EBITDA calculation

US$ in millions

Microsoft Excel LibreOffice Calc
12 months ended: Dec 31, 2021 Dec 31, 2020 Dec 31, 2019 Dec 31, 2018 Dec 31, 2017
Net income (loss) 230  119  627  (27) (149)
Add: Income tax expense 19  31  (560) (12) — 
Earnings before tax (EBT) 249  149  67  (39) (149)
Add: Interest expense 28  33  33  53  53 
Earnings before interest and tax (EBIT) 277  182  100  14  (96)
Add: Depreciation and amortization 472  336  252  150  114 
Earnings before interest, tax, depreciation and amortization (EBITDA) 749  518  353  163  18 

Based on: 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).

Item Description The company
EBITDA To calculate EBITDA analysts start with net earnings. To that earnings number, interest, taxes, depreciation, and amortization are added. EBITDA as a pre-interest number is a flow to all providers of capital. ServiceNow Inc. EBITDA increased from 2019 to 2020 and from 2020 to 2021.

Enterprise Value to EBITDA Ratio, Current

ServiceNow Inc., current EV/EBITDA calculation, comparison to benchmarks

Microsoft Excel LibreOffice Calc
Selected Financial Data (US$ in millions)
Enterprise value (EV) 95,144 
Earnings before interest, tax, depreciation and amortization (EBITDA) 749 
Valuation Ratio
EV/EBITDA 127.03
Benchmarks
EV/EBITDA, Competitors1
Accenture PLC 17.52
Adobe Inc. 25.85
Automatic Data Processing Inc. 13.89
International Business Machines Corp. 13.77
Intuit Inc. 36.53
Mastercard Inc. 27.32
Microsoft Corp. 22.10
Oracle Corp. 17.74
PayPal Holdings Inc. 8.24
Salesforce Inc. 33.23
Visa Inc. 24.01
EV/EBITDA, Sector
Software & Services 21.18
EV/EBITDA, Industry
Information Technology 17.98

Based on: 10-K (reporting date: 2021-12-31).

1 Click competitor name to see calculations.

If the company EV/EBITDA is lower then the EV/EBITDA of benchmark then company is relatively undervalued.
Otherwise, if the company EV/EBITDA is higher then the EV/EBITDA of benchmark then company is relatively overvalued.


Enterprise Value to EBITDA Ratio, Historical

ServiceNow Inc., historical EV/EBITDA calculation, comparison to benchmarks

Microsoft Excel LibreOffice Calc
Dec 31, 2021 Dec 31, 2020 Dec 31, 2019 Dec 31, 2018 Dec 31, 2017
Selected Financial Data (US$ in millions)
Enterprise value (EV)1 110,442  114,500  65,992  42,540  27,523 
Earnings before interest, tax, depreciation and amortization (EBITDA)2 749  518  353  163  18 
Valuation Ratio
EV/EBITDA3 147.45 220.91 187.17 260.48 1,506.85
Benchmarks
EV/EBITDA, Competitors4
Accenture PLC 21.47 15.93 15.60 13.79 15.98
Adobe Inc. 35.44 43.06 41.16 37.27 36.77
Automatic Data Processing Inc. 14.05 8.32 12.32 11.88 7.32
International Business Machines Corp. 12.53 12.28 10.23 9.54 10.76
Intuit Inc. 51.96 35.70 34.27 31.25 21.97
Mastercard Inc. 31.84 38.83 32.61 28.36 24.94
Microsoft Corp. 24.59 21.74 17.21 15.67 15.00
Oracle Corp. 13.78 11.54 11.83 9.50 12.73
PayPal Holdings Inc. 19.34 43.02 27.91 24.59 22.50
Salesforce Inc. 33.82 49.43 55.96 84.53 75.36
Visa Inc. 24.81 29.80 24.56 22.59 20.10
EV/EBITDA, Sector
Software & Services 24.20 23.98 19.68 17.30 16.71
EV/EBITDA, Industry
Information Technology 20.56 20.64 15.56 13.28 13.33

Based on: 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).

1 See details »

2 See details »

3 2021 Calculation
EV/EBITDA = EV ÷ EBITDA
= 110,442 ÷ 749 = 147.45

4 Click competitor name to see calculations.

Valuation ratio Description The company
EV/EBITDA Enterprise value to earnings before interest, tax, depreciation and amortization is a valuation indicator for the overall company rather than common stock. ServiceNow Inc. EV/EBITDA ratio increased from 2019 to 2020 but then decreased significantly from 2020 to 2021.