Stock Analysis on Net
Stock Analysis on Net
Microsoft Excel LibreOffice Calc

ServiceNow Inc. (NYSE:NOW)

Enterprise Value to EBITDA (EV/EBITDA)

Intermediate level


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

ServiceNow Inc., EBITDA calculation

US$ in thousands

Microsoft Excel LibreOffice Calc
12 months ended: Dec 31, 2019 Dec 31, 2018 Dec 31, 2017 Dec 31, 2016 Dec 31, 2015
Net income (loss) 626,698  (26,704) (149,130) (451,804) (198,426)
Add: Income tax expense (559,513) (12,320) 126  1,753  5,414 
Earnings before tax (EBT) 67,185  (39,024) (149,004) (450,051) (193,012)
Add: Interest expense 33,283  52,733  53,394  33,278  31,097 
Earnings before interest and tax (EBIT) 100,468  13,709  (95,610) (416,773) (161,915)
Add: Depreciation and amortization 252,114  149,604  113,875  83,082  60,356 
Earnings before interest, tax, depreciation and amortization (EBITDA) 352,582  163,313  18,265  (333,691) (101,559)

Based on: 10-K (filing date: 2020-02-20), 10-K (filing date: 2019-02-27), 10-K (filing date: 2018-02-28), 10-K (filing date: 2017-02-28), 10-K (filing date: 2016-02-25).

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.’s EBITDA increased from 2017 to 2018 and from 2018 to 2019.

Enterprise Value to EBITDA Ratio, Current

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

Microsoft Excel LibreOffice Calc
Selected Financial Data (US$ in thousands)
Enterprise value (EV) 78,418,994 
Earnings before interest, tax, depreciation and amortization (EBITDA) 352,582 
Valuation Ratio
EV/EBITDA 222.41
Benchmarks
EV/EBITDA, Competitors1
Adobe Inc. 52.96
Alphabet Inc. 17.59
Autodesk Inc. 113.01
Facebook Inc. 20.61
International Business Machines Corp. 9.14
Intuit Inc. 36.98
Microsoft Corp. 26.46
Oracle Corp. 11.80
salesforce.com inc. 58.17
EV/EBITDA, Sector
Software & Computer Services 21.92
EV/EBITDA, Industry
Technology 18.87

Based on: 10-K (filing date: 2020-02-20).

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, 2019 Dec 31, 2018 Dec 31, 2017 Dec 31, 2016 Dec 31, 2015
Selected Financial Data (US$ in thousands)
Enterprise value (EV)1 65,991,898  42,539,740  27,522,585  14,211,010  8,414,708 
Earnings before interest, tax, depreciation and amortization (EBITDA)2 352,582  163,313  18,265  (333,691) (101,559)
Valuation Ratio
EV/EBITDA3 187.17 260.48 1,506.85
Benchmarks
EV/EBITDA, Competitors4
Adobe Inc. 41.16 37.27 36.77 28.22 33.16
Alphabet Inc. 17.07 15.69 19.10 15.51 16.21
Autodesk Inc. 335.51 75.90 52.55
Facebook Inc. 17.76 14.64 21.98 23.48 35.80
International Business Machines Corp. 10.23 9.54 10.76 11.72 7.85
Intuit Inc. 34.27 31.25 21.97 19.58 22.81
Microsoft Corp. 17.10 15.58 14.93 13.70 12.37
Oracle Corp. 11.83 9.50 12.73 9.86 9.80
salesforce.com inc. 55.87 84.25 74.85 68.47 121.75
EV/EBITDA, Sector
Software & Computer Services 17.73 15.68 17.79 15.60 14.87
EV/EBITDA, Industry
Technology 15.02 12.97 14.06 12.25 10.67

Based on: 10-K (filing date: 2020-02-20), 10-K (filing date: 2019-02-27), 10-K (filing date: 2018-02-28), 10-K (filing date: 2017-02-28), 10-K (filing date: 2016-02-25).

1 See details »

2 See details »

3 2019 Calculation
EV/EBITDA = EV ÷ EBITDA
= 65,991,898 ÷ 352,582 = 187.17

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.’s EV/EBITDA ratio decreased from 2017 to 2018 and from 2018 to 2019.