ServiceNow Inc., current enterprise value calculation

Current share price (P)	$101.33
No. shares of common stock outstanding	1,031,000,000
US$ in millions
Common equity (market value)¹	104,471)
Add: Preferred stock, $0.001 par value; no shares issued or outstanding (per books)	—)
Total equity	104,471)
Add: Current debt, net (per books)	—)
Add: Long-term debt, net, less current portion (per books)	1,491)
Total equity and debt	105,962)
Less: Cash and cash equivalents	3,726)
Less: Marketable securities	2,558)
Enterprise value (EV)	99,678)

Based on: 10-K (reporting date: 2025-12-31).

¹ Common equity (market value) = Share price × No. shares of common stock outstanding
= 101.33 × 1,031,000,000

ServiceNow Inc., EV calculation

	Dec 31, 2025	Dec 31, 2024	Dec 31, 2023	Dec 31, 2022	Dec 31, 2021
Share price^1, 2	$116.73	$202.55	$153.34	$91.03	$112.17
No. shares of common stock outstanding¹	1,046,000,000	1,030,000,000	1,025,000,000	1,015,000,000	1,000,000,000
US$ in millions
Common equity (market value)³	122,100)	208,627)	157,174)	92,395)	112,170)
Add: Preferred stock, $0.001 par value; no shares issued or outstanding (book value)	—)	—)	—)	—)	—)
Total equity	122,100)	208,627)	157,174)	92,395)	112,170)
Add: Current debt, net (book value)	—)	—)	—)	—)	92)
Add: Long-term debt, net, less current portion (book value)	1,491)	1,489)	1,488)	1,486)	1,484)
Total equity and debt	123,591)	210,116)	158,662)	93,881)	113,746)
Less: Cash and cash equivalents	3,726)	2,304)	1,897)	1,470)	1,728)
Less: Marketable securities	2,558)	3,458)	2,980)	2,810)	1,576)
Enterprise value (EV)	117,307)	204,354)	153,785)	89,601)	110,442)

Based on: 10-K (reporting date: 2025-12-31), 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).

¹ Data adjusted for splits and stock dividends.

² Closing price as at the filing date of ServiceNow Inc. Annual Report.

³ 2025 Calculation
Common equity (market value) = Share price × No. shares of common stock outstanding
= 116.73 × 1,046,000,000

The enterprise value (EV) exhibited significant fluctuations over the five-year period. Initially, a decrease in EV is observed, followed by substantial growth, and then a notable decline. This pattern mirrors the movements in the underlying components of EV, specifically common equity and total debt.

Enterprise Value Trend: Enterprise value decreased from US$110,442 million in 2021 to US$89,601 million in 2022, representing a decline of approximately 18.8%. A strong recovery and expansion followed, with EV increasing to US$153,785 million in 2023 and further to US$204,354 million in 2024. However, in 2025, EV experienced a considerable reduction, falling to US$117,307 million.
Common Equity and Total Equity: Common equity and total equity values are identical across all reported years. This suggests that there are no preferred equity holdings or other equity components impacting the total equity calculation. The trend in common equity mirrors the overall EV trend, decreasing in 2022, increasing through 2024, and declining in 2025.
Total Equity and Debt: Total equity and debt increased consistently from US$113,746 million in 2021 to US$210,116 million in 2024. This indicates a growing reliance on debt financing alongside equity. The decrease in 2025 to US$123,591 million suggests a reduction in both equity and debt levels during that year.
Relationship between Components and EV: The fluctuations in enterprise value are closely correlated with the changes in common equity. The decrease in 2022 and the subsequent increases in 2023 and 2024 align with the corresponding movements in common equity. The 2025 decline in EV is also consistent with the reduction in common equity. The relatively small difference between total equity and debt and the enterprise value suggests that market perceptions of growth opportunities and risk are significantly influencing the valuation.

The substantial volatility in enterprise value over the observed period warrants further investigation into the underlying drivers of these changes, including market conditions, company performance, and debt management strategies.

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ServiceNow Inc. (NYSE:NOW)

Enterprise Value (EV)

Current Enterprise Value (EV)

Historical Enterprise Value (EV)