Price to FCFE (P/FCFE)
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- Cash Flow Statement
- Common-Size Income Statement
- Analysis of Profitability Ratios
- Analysis of Liquidity Ratios
- Analysis of Long-term (Investment) Activity Ratios
- Common Stock Valuation Ratios
- Enterprise Value (EV)
- Capital Asset Pricing Model (CAPM)
- Operating Profit Margin since 2012
- Analysis of Revenues
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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. | |
| AppLovin Corp. | |
| Cadence Design Systems Inc. | |
| CrowdStrike Holdings Inc. | |
| Datadog Inc. | |
| 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. | ||||||
| AppLovin Corp. | ||||||
| Cadence Design Systems Inc. | ||||||
| CrowdStrike Holdings Inc. | ||||||
| Datadog Inc. | ||||||
| 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 Trend
- The share price experienced fluctuations over the five-year period. It initially declined from $118.26 at the end of 2020 to $91.03 by the end of 2022. However, there was a strong recovery thereafter, with the price rising to $153.34 in 2023 and continuing upward to $202.55 in 2024, indicating renewed investor confidence and possible positive growth expectations.
- Free Cash Flow to Equity (FCFE) per Share
- FCFE per share showed some volatility but generally trended upward. It decreased from $2.37 in 2020 to $1.74 in 2021, followed by a gradual recovery and growth to $2.05 in 2022, $2.64 in 2023, and $3.28 in 2024. This suggests improving cash generation available to equity shareholders, strengthening the company’s financial position over time.
- Price to FCFE (P/FCFE) Ratio
- The P/FCFE ratio displayed significant variability. It rose notably from 49.83 in 2020 to a peak of 64.54 in 2021, indicating that the market was pricing the free cash flows more expensively despite the dip in FCFE per share. The ratio then dropped to 44.44 in 2022, reflecting a recalibration of valuation relative to cash flow. Subsequently, the ratio increased again to 58.19 in 2023 and slightly more to 61.82 in 2024. The elevated ratio in the last two years, alongside rising FCFE and share price, suggests heightened market expectations for future performance or growth potential.
- Overall Insights
- The interplay between the share price, FCFE per share, and the P/FCFE ratio indicates that the company has undergone a period of adjustment followed by strong growth in valuation and cash flow generation. The rising share price and FCFE in the latest years reflect improved financial performance, whereas the fluctuating valuation multiples imply changing investor sentiment and market conditions. The sustained increase in the P/FCFE ratio in the final years points toward optimistic market expectations for continued growth beyond current cash flow levels.