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

ServiceNow Inc. (NYSE:NOW)

Price to FCFE (P/FCFE)

Intermediate level

Free Cash Flow to Equity (FCFE)

ServiceNow Inc., FCFE 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)
Net noncash charges 530,920  697,039  666,626  515,496  411,603 
Changes in operating assets and liabilities, net of effect of business combinations 78,354  140,754  125,329  96,229  101,914 
Net cash provided by operating activities 1,235,972  811,089  642,825  159,921  315,091 
Purchases of property and equipment (264,892) (224,462) (150,510) (105,562) (87,481)
Purchases of other intangibles (72,689) (24,400) (6,670) (18,750) (1,750)
Net proceeds from borrowings on convertible senior notes —  —  772,127  —  — 
Repayments of convertible senior notes attributable to principal (9) (429,645) (4) —  — 
Free cash flow to equity (FCFE) 898,382  132,582  1,257,768  35,609  225,860 

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
FCFE Free cash flow to equity is the cash flow available to ServiceNow Inc.’s equity holders after all operating expenses, interest, and principal payments have been paid and necessary investments in working and fixed capital have been made. ServiceNow Inc.’s FCFE decreased from 2017 to 2018 but then increased from 2018 to 2019 not reaching 2017 level.

Price to FCFE Ratio, Current

ServiceNow Inc., current P/FCFE calculation, comparison to benchmarks

Microsoft Excel LibreOffice Calc
No. shares of common stock outstanding 195,100,000
Selected Financial Data (US$)
Free cash flow to equity (FCFE) (in thousands) 898,382 
FCFE per share 4.60
Current share price (P) 513.76
Valuation Ratio
P/FCFE 111.57
Benchmarks
P/FCFE, Competitors1
Adobe Inc. 41.36
Alphabet Inc. 38.25
Autodesk Inc. 49.85
Facebook Inc. 34.65
International Business Machines Corp. 3.99
Intuit Inc. 18.71
Microsoft Corp. 44.29
Oracle Corp. 6.75
salesforce.com inc. 64.75
P/FCFE, Sector
Software & Computer Services 33.21
P/FCFE, Industry
Technology 31.09

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

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

Microsoft Excel LibreOffice Calc
Dec 31, 2019 Dec 31, 2018 Dec 31, 2017 Dec 31, 2016 Dec 31, 2015
No. shares of common stock outstanding1 189,800,000 180,500,000 174,700,000 168,000,000 161,400,000
Selected Financial Data (US$)
Free cash flow to equity (FCFE) (in thousands)2 898,382  132,582  1,257,768  35,609  225,860 
FCFE per share3 4.73 0.73 7.20 0.21 1.40
Share price1, 4 352.94 240.31 161.01 86.92 54.16
Valuation Ratio
P/FCFE5 74.57 327.16 22.36 410.08 38.70
Benchmarks
P/FCFE, Competitors6
Adobe Inc. 41.90 19.87 35.56 27.41 19.13
Alphabet Inc. 32.39 34.99 31.54 22.63 29.29
Autodesk Inc. 41.92 609.14 197.14 11.80 22.14
Facebook Inc. 28.91 30.97 32.08 33.48 52.13
International Business Machines Corp. 4.39 11.07 8.55 10.60 9.60
Intuit Inc. 34.61 29.29 42.22 21.01 18.76
Microsoft Corp. 30.77 37.57 8.86 10.12 10.15
Oracle Corp. 22.31 10.78 8.16 11.68 5.69
salesforce.com inc. 29.09 52.51 25.44 50.00 164.03
P/FCFE, Sector
Software & Computer Services 25.41 28.10 15.99 16.26 14.74
P/FCFE, Industry
Technology 21.30 23.80 13.64 12.91 10.32

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 Data adjusted for splits and stock dividends.

2 See details »

3 2019 Calculation
FCFE per share = FCFE ÷ No. shares of common stock outstanding
= 898,382,000 ÷ 189,800,000 = 4.73

4 Closing price as at the filing date of ServiceNow Inc.’s Annual Report.

5 2019 Calculation
P/FCFE = Share price ÷ FCFE per share
= 352.94 ÷ 4.73 = 74.57

6 Click competitor name to see calculations.

Valuation ratio Description The company
P/FCFE Price to free cash flow to equity is cash valuation indicator of stockholders’ equity. ServiceNow Inc.’s P/FCFE ratio increased from 2017 to 2018 but then slightly decreased from 2018 to 2019 not reaching 2017 level.