Price to FCFE (P/FCFE)
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- Income Statement
- Common-Size Balance Sheet: Liabilities and Stockholders’ Equity
- Analysis of Liquidity Ratios
- Analysis of Long-term (Investment) Activity Ratios
- Analysis of Geographic Areas
- Common Stock Valuation Ratios
- Dividend Discount Model (DDM)
- Net Profit Margin since 2012
- Return on Assets (ROA) since 2012
- Current Ratio since 2012
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Free Cash Flow to Equity (FCFE)
ServiceNow Inc., FCFE calculation
US$ in millions
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).
- Net Cash Provided by Operating Activities
- The net cash provided by operating activities exhibits a consistent upward trend over the five-year period. Starting at $1,787 million in 2020, the figure increased to $2,191 million in 2021 and further to $2,723 million in 2022. The growth continued into 2023 and 2024, reaching $3,398 million and $4,267 million respectively. This progressive increase indicates improving operational efficiency and a solid generation of cash from core business activities.
- Free Cash Flow to Equity (FCFE)
- The free cash flow to equity shows some fluctuations within the analyzed timeframe but overall demonstrates an increasing pattern. Beginning at $2,327 million in 2020, there was a noticeable decline to $1,738 million in 2021. The FCFE then recovered to $2,079 million in 2022, followed by continued growth in 2023 and 2024, reaching $2,701 million and $3,375 million respectively. Despite the initial dip, the upward movement in later years suggests strengthened financial flexibility and enhanced capacity to return value to shareholders.
- Comparative Insights
- Both key cash flow metrics—net cash from operations and FCFE—exhibit growth trajectories with net operating cash flow showing a steady rise, while FCFE experienced an early decline before recovering and expanding. The divergence in trends during 2021 may warrant further examination of investing and financing activities impacting FCFE. Overall, the data reflects positive cash generation dynamics supporting operational health and shareholder equity value enhancement over time.
Price to FCFE Ratio, Current
ServiceNow Inc., current P/FCFE calculation, comparison to benchmarks
| No. shares of common stock outstanding | |
| Selected Financial Data (US$) | |
| Free cash flow to equity (FCFE) (in millions) | |
| FCFE per share | |
| Current share price (P) | |
| Valuation Ratio | |
| P/FCFE | |
| Benchmarks | |
| P/FCFE, Competitors1 | |
| Accenture PLC | |
| Adobe Inc. | |
| Cadence Design Systems Inc. | |
| CrowdStrike Holdings Inc. | |
| Fair Isaac Corp. | |
| International Business Machines Corp. | |
| Intuit Inc. | |
| Microsoft Corp. | |
| Oracle Corp. | |
| Palantir Technologies Inc. | |
| Palo Alto Networks Inc. | |
| Salesforce Inc. | |
| Synopsys Inc. | |
| Workday Inc. | |
| P/FCFE, Sector | |
| Software & Services | |
| P/FCFE, Industry | |
| Information Technology | |
Based on: 10-K (reporting date: 2024-12-31).
1 Click competitor name to see calculations.
If the company P/FCFE is lower then the P/FCFE of benchmark then company is relatively undervalued.
Otherwise, if the company P/FCFE is higher then the P/FCFE of benchmark then company is relatively overvalued.
Price to FCFE Ratio, Historical
ServiceNow Inc., historical P/FCFE calculation, comparison to benchmarks
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| No. shares of common stock outstanding1 | ||||||
| Selected Financial Data (US$) | ||||||
| Free cash flow to equity (FCFE) (in millions)2 | ||||||
| FCFE per share3 | ||||||
| Share price1, 4 | ||||||
| Valuation Ratio | ||||||
| P/FCFE5 | ||||||
| Benchmarks | ||||||
| P/FCFE, Competitors6 | ||||||
| Accenture PLC | ||||||
| Adobe Inc. | ||||||
| Cadence Design Systems Inc. | ||||||
| CrowdStrike Holdings Inc. | ||||||
| Fair Isaac Corp. | ||||||
| International Business Machines Corp. | ||||||
| Intuit Inc. | ||||||
| Microsoft Corp. | ||||||
| Oracle Corp. | ||||||
| Palantir Technologies Inc. | ||||||
| Palo Alto Networks Inc. | ||||||
| Salesforce Inc. | ||||||
| Synopsys Inc. | ||||||
| Workday Inc. | ||||||
| P/FCFE, Sector | ||||||
| Software & Services | ||||||
| P/FCFE, Industry | ||||||
| Information Technology | ||||||
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).
1 Data adjusted for splits and stock dividends.
3 2024 Calculation
FCFE per share = FCFE ÷ No. shares of common stock outstanding
= ÷ =
4 Closing price as at the filing date of ServiceNow Inc. Annual Report.
5 2024 Calculation
P/FCFE = Share price ÷ FCFE per share
= ÷ =
6 Click competitor name to see calculations.
- Share Price Trends
- The share price exhibited a fluctuating yet overall upward trend over the five-year period. Starting at $591.29 in 2020, it decreased to $560.85 in 2021 and further declined to $455.13 in 2022, marking the lowest point within the period. Subsequently, there was a notable recovery and significant growth, with the price rising to $766.69 in 2023 and reaching $1,012.75 by the end of 2024.
- FCFE per Share Development
- Free Cash Flow to Equity (FCFE) per share showed variability but maintained a general growth trajectory. Beginning at $11.87 in 2020, FCFE per share decreased to $8.69 in 2021, indicating a contraction in cash flows available to equity holders. However, the value rebounded to $10.24 in 2022, followed by an accelerated increase to $13.18 in 2023 and further to $16.38 in 2024, reflecting improving cash generation capacity over time.
- P/FCFE Ratio Analysis
- The Price to FCFE ratio showed moderate volatility with upward and downward movements. It started at 49.83 in 2020 and increased significantly to 64.54 in 2021, suggesting that the share price was valued higher relative to free cash flows at that time. The ratio then declined to 44.44 in 2022, the lowest in the period, indicating a relatively more attractive valuation. Subsequently, it rose again to 58.19 in 2023 and 61.82 in 2024, implying an increasing premium on the share price relative to free cash flows in the latest years.
- Overall Interpretation
- The financial data reveals a company that faced some challenges lowering both share price and FCFE per share in 2021-2022 but demonstrated strong recovery and growth in 2023-2024. The substantial increase in share price in the final two years, coupled with the rising FCFE per share, suggests improved business performance and investor confidence. However, the elevated P/FCFE ratio in the last years indicates that the market is pricing the shares at a higher premium relative to free cash flow, which could reflect optimistic expectations for future earnings or growth.