Common Stock Valuation Ratios (Price Multiples)
Quarterly Data
Valuation ratios measure the quantity of an asset or flaw (e.g., earnings) associated with ownership of a specified claim (e.g., a share of ownership of the enterprise).
Historical Valuation Ratios (Summary)
ServiceNow Inc., historical price multiples (quarterly data)
Based on: 10-Q (reporting date: 2026-06-30), 10-Q (reporting date: 2026-03-31), 10-K (reporting date: 2025-12-31), 10-Q (reporting date: 2025-09-30), 10-Q (reporting date: 2025-06-30), 10-Q (reporting date: 2025-03-31), 10-K (reporting date: 2024-12-31), 10-Q (reporting date: 2024-09-30), 10-Q (reporting date: 2024-06-30), 10-Q (reporting date: 2024-03-31), 10-K (reporting date: 2023-12-31), 10-Q (reporting date: 2023-09-30), 10-Q (reporting date: 2023-06-30), 10-Q (reporting date: 2023-03-31), 10-K (reporting date: 2022-12-31), 10-Q (reporting date: 2022-09-30), 10-Q (reporting date: 2022-06-30), 10-Q (reporting date: 2022-03-31).
The valuation multiples exhibit a general trajectory of compression over the analyzed period, characterized by an initial decline, a temporary period of volatility and expansion in 2024, and a significant downward correction beginning in late 2025.
- Price to Earnings (P/E) and Price to Operating Profit (P/OP)
- Both earnings-based ratios show a dramatic reduction in valuation premiums. The P/E ratio declined from a peak of 452.02 in March 2022 to a low of 71.21 by September 2023. Following a resurgence in 2024 where the ratio peaked at 148.98 in June, a sustained decline is observed through 2025 and early 2026, reaching a period low of 49.75 in March 2026. The P/OP ratio mirrors this pattern, falling from 408.10 in early 2022 to 46.59 by March 2026, suggesting that the market's valuation of operating profitability has normalized significantly over time.
- Price to Sales (P/S)
- The P/S ratio remained relatively resilient between 12.13 and 17.52 from March 2022 through March 2024. A peak of 18.99 was reached in December 2024, indicating a temporary increase in the premium paid per unit of revenue. However, a sharp contraction occurred thereafter, with the ratio falling to 6.26 by March 2026, marking a substantial shift in how the market values the company's top-line growth.
- Price to Book Value (P/BV)
- The P/BV ratio followed a trend of initial contraction, moving from 25.22 in March 2022 down to 15.73 by September 2023. Similar to other metrics, a recovery phase was noted in 2024, peaking at 21.71 in December. This was followed by a steep decline in 2025 and 2026, with the ratio dropping to 7.45 by March 2026, reflecting a decrease in the premium over the company's accounting equity.
The synchronized decline across all four valuation ratios in the final stages of the data set indicates a comprehensive repricing. The transition from extreme multiples in 2022 to significantly lower levels by 2026 suggests a shift toward a more mature valuation framework or a broader market adjustment in growth expectations.
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Price to Earnings (P/E)
ServiceNow Inc., historical P/E calculation (quarterly data)
| Jun 30, 2026 | Mar 31, 2026 | Dec 31, 2025 | Sep 30, 2025 | Jun 30, 2025 | Mar 31, 2025 | Dec 31, 2024 | Sep 30, 2024 | Jun 30, 2024 | Mar 31, 2024 | Dec 31, 2023 | Sep 30, 2023 | Jun 30, 2023 | Mar 31, 2023 | Dec 31, 2022 | Sep 30, 2022 | Jun 30, 2022 | Mar 31, 2022 | |||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| No. shares of common stock outstanding1 | 1,034,000,000 | 1,031,000,000 | 1,046,000,000 | 1,040,000,000 | 1,040,000,000 | 1,035,000,000 | 1,030,000,000 | 1,030,000,000 | 1,030,000,000 | 1,025,000,000 | 1,025,000,000 | 1,025,000,000 | 1,020,000,000 | 1,020,000,000 | 1,015,000,000 | 1,010,000,000 | 1,010,000,000 | 1,000,000,000 | ||||||
| Selected Financial Data (US$) | ||||||||||||||||||||||||
| Net income (in millions) | 298) | 469) | 401) | 502) | 385) | 460) | 384) | 432) | 262) | 347) | 295) | 242) | 1,044) | 150) | 150) | 80) | 20) | 75) | ||||||
| Earnings per share (EPS)2 | 1.62 | 1.70 | 1.67 | 1.66 | 1.60 | 1.49 | 1.38 | 1.30 | 1.11 | 1.88 | 1.69 | 1.55 | 1.40 | 0.39 | 0.32 | 0.20 | 0.18 | 0.22 | ||||||
| Share price1, 3 | 91.94 | 84.78 | 116.73 | 186.94 | 199.24 | 162.54 | 202.55 | 191.32 | 165.76 | 145.31 | 153.34 | 110.19 | 111.98 | 90.87 | 91.03 | 83.13 | 87.30 | 100.80 | ||||||
| Valuation Ratio | ||||||||||||||||||||||||
| P/E ratio4 | 56.93 | 49.75 | 69.85 | 112.32 | 124.75 | 109.38 | 146.40 | 147.50 | 148.98 | 77.25 | 90.80 | 71.21 | 80.21 | 231.72 | 284.29 | 417.72 | 479.20 | 452.02 | ||||||
| Benchmarks | ||||||||||||||||||||||||
| P/E Ratio, Competitors5 | ||||||||||||||||||||||||
| Accenture PLC | 16.35 | 21.84 | 19.47 | 22.37 | 24.53 | 30.76 | 31.07 | 27.59 | 30.87 | 31.14 | 27.81 | 27.07 | 24.73 | 23.64 | 22.93 | 27.30 | 31.69 | 40.88 | ||||||
| Adobe Inc. | 11.35 | 13.30 | 17.51 | 21.26 | 23.93 | 25.11 | 31.98 | 42.53 | 46.15 | 47.07 | 49.64 | 44.69 | 45.30 | 36.72 | 33.15 | 27.18 | 35.27 | 45.03 | ||||||
| AppLovin Corp. | 31.70 | 39.74 | 41.68 | 73.67 | 54.38 | 53.48 | 68.97 | 49.07 | 27.16 | 40.75 | 56.56 | 128.35 | 508.94 | — | — | — | — | — | ||||||
| Cadence Design Systems Inc. | 66.50 | 80.31 | 72.92 | 87.60 | 99.91 | 75.17 | 67.09 | 76.54 | 69.10 | 72.17 | 78.64 | 68.16 | 73.71 | 67.89 | 59.70 | 55.98 | 59.24 | 56.00 | ||||||
| CrowdStrike Holdings Inc. | — | — | — | 675.70 | 391.29 | 632.54 | 892.67 | — | — | — | — | — | — | — | — | — | — | — | ||||||
| Datadog Inc. | 463.62 | 495.16 | 398.52 | 628.11 | 366.47 | 220.89 | 235.49 | 220.03 | 232.13 | 340.29 | 884.97 | — | — | — | — | — | 5,463.33 | 16,813.15 | ||||||
| International Business Machines Corp. | 18.15 | 20.20 | 20.31 | 33.69 | 41.60 | 38.94 | 39.68 | 29.62 | 20.87 | 18.66 | 22.50 | 19.07 | 63.16 | 62.36 | 71.56 | 95.23 | 20.78 | 22.19 | ||||||
| Intuit Inc. | 25.13 | 43.09 | 48.19 | 53.58 | 51.15 | 65.11 | 58.94 | 60.26 | 66.50 | 61.19 | 64.61 | 56.26 | 59.38 | 56.80 | 57.31 | 40.47 | 63.28 | 85.13 | ||||||
| Microsoft Corp. | 29.99 | 38.37 | 37.46 | 30.40 | 35.45 | 35.53 | 35.67 | 34.41 | 36.78 | 31.86 | 33.96 | 29.67 | 26.71 | 26.77 | 28.34 | 27.89 | 30.38 | 34.30 | ||||||
| Oracle Corp. | 37.04 | 75.00 | 47.60 | 33.25 | 42.77 | 39.36 | 37.63 | 32.94 | 27.34 | 32.03 | 38.96 | 27.11 | 24.69 | 35.29 | 26.85 | 27.46 | 26.70 | 17.45 | ||||||
| Palantir Technologies Inc. | 129.57 | 142.81 | 195.77 | 415.04 | 538.53 | 450.16 | 632.38 | 244.40 | 147.19 | 159.62 | 246.77 | 279.03 | — | — | — | — | — | — | ||||||
| Palo Alto Networks Inc. | 96.98 | 115.46 | 112.39 | 97.64 | 105.57 | 47.73 | 42.42 | 41.23 | 37.18 | 127.17 | 170.35 | 290.26 | 1,656.49 | — | — | — | — | — | ||||||
| Salesforce Inc. | 34.86 | 41.12 | 45.28 | 59.32 | 43.63 | 38.62 | 71.24 | 94.07 | 136.55 | 547.14 | 879.57 | 528.78 | 324.46 | 174.67 | 135.68 | 147.95 | 110.94 | 48.91 | ||||||
| Synopsys Inc. | 130.23 | 78.12 | 69.11 | 56.20 | 33.17 | 34.48 | 33.69 | 55.30 | 63.08 | 62.39 | 70.08 | 62.65 | 67.52 | 57.28 | 51.76 | 53.76 | 46.52 | 48.45 | ||||||
| Workday Inc. | 101.34 | 130.49 | 122.85 | 43.12 | 44.76 | 37.68 | 50.53 | 934.29 | — | — | — | — | — | — | 1,957.29 | 2,418.34 | — | — | ||||||
Based on: 10-Q (reporting date: 2026-06-30), 10-Q (reporting date: 2026-03-31), 10-K (reporting date: 2025-12-31), 10-Q (reporting date: 2025-09-30), 10-Q (reporting date: 2025-06-30), 10-Q (reporting date: 2025-03-31), 10-K (reporting date: 2024-12-31), 10-Q (reporting date: 2024-09-30), 10-Q (reporting date: 2024-06-30), 10-Q (reporting date: 2024-03-31), 10-K (reporting date: 2023-12-31), 10-Q (reporting date: 2023-09-30), 10-Q (reporting date: 2023-06-30), 10-Q (reporting date: 2023-03-31), 10-K (reporting date: 2022-12-31), 10-Q (reporting date: 2022-09-30), 10-Q (reporting date: 2022-06-30), 10-Q (reporting date: 2022-03-31).
1 Data adjusted for splits and stock dividends.
2 Q2 2026 Calculation
EPS
= (Net incomeQ2 2026
+ Net incomeQ1 2026
+ Net incomeQ4 2025
+ Net incomeQ3 2025)
÷ No. shares of common stock outstanding
= (298,000,000 + 469,000,000 + 401,000,000 + 502,000,000)
÷ 1,034,000,000 = 1.62
3 Closing price as at the filing date of ServiceNow Inc. Quarterly or Annual Report.
4 Q2 2026 Calculation
P/E ratio = Share price ÷ EPS
= 91.94 ÷ 1.62 = 56.93
5 Click competitor name to see calculations.
The valuation trajectory of the equity exhibits a transition from an extremely high growth premium to a more compressed valuation multiple over the observed period. This shift is characterized by a significant decoupling of share price movements from earnings growth, resulting in substantial volatility in the price-to-earnings (P/E) ratio.
- P/E Ratio Trends
- A period of extreme valuation is observed throughout 2022, with the P/E ratio peaking at 479.20 in June 2022. A sharp contraction occurred in mid-2023, where the ratio fell to 80.21 by June 30, 2023. Following this decline, the ratio experienced a secondary surge, reaching 148.98 in June 2024, before entering a sustained downward trend that culminated in a period low of 49.75 by March 31, 2026.
- Earnings Per Share (EPS) Progression
- Earnings demonstrated a step-function increase. EPS remained below 0.40 USD through March 31, 2023, followed by a rapid acceleration to 1.40 USD by June 30, 2023. For the remainder of the period, earnings maintained a baseline of stability, generally fluctuating between 1.11 USD and 1.88 USD, indicating a shift from early-stage earnings growth to a more mature profit generation phase.
- Share Price Correlation
- The share price exhibited a bullish trend from early 2023, peaking at 202.55 USD in December 2024. This ascent contributed to the expansion of the P/E ratio during 2024, as price appreciation outpaced earnings growth. However, a significant correction occurred throughout 2025 and early 2026, with the price dropping to 84.78 USD by March 31, 2026, which drove the P/E ratio to its lowest levels despite stable earnings.
- Valuation Compression Analysis
- The overall trend indicates a significant compression of the valuation multiple. The initial P/E ratios in 2022 suggest a market pricing based on future expectations rather than current fundamentals. The subsequent reduction in the ratio, particularly in 2026, reflects a realignment of the share price with the realized earnings power of the entity, transitioning the valuation from a speculative growth profile to a more fundamental-based valuation.
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Price to Operating Profit (P/OP)
ServiceNow Inc., historical P/OP calculation (quarterly data)
| Jun 30, 2026 | Mar 31, 2026 | Dec 31, 2025 | Sep 30, 2025 | Jun 30, 2025 | Mar 31, 2025 | Dec 31, 2024 | Sep 30, 2024 | Jun 30, 2024 | Mar 31, 2024 | Dec 31, 2023 | Sep 30, 2023 | Jun 30, 2023 | Mar 31, 2023 | Dec 31, 2022 | Sep 30, 2022 | Jun 30, 2022 | Mar 31, 2022 | |||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| No. shares of common stock outstanding1 | 1,034,000,000 | 1,031,000,000 | 1,046,000,000 | 1,040,000,000 | 1,040,000,000 | 1,035,000,000 | 1,030,000,000 | 1,030,000,000 | 1,030,000,000 | 1,025,000,000 | 1,025,000,000 | 1,025,000,000 | 1,020,000,000 | 1,020,000,000 | 1,015,000,000 | 1,010,000,000 | 1,010,000,000 | 1,000,000,000 | ||||||
| Selected Financial Data (US$) | ||||||||||||||||||||||||
| Income from operations (in millions) | 162) | 503) | 443) | 572) | 358) | 451) | 374) | 418) | 240) | 332) | 270) | 231) | 117) | 144) | 155) | 91) | 22) | 87) | ||||||
| Operating profit per share2 | 1.62 | 1.82 | 1.74 | 1.69 | 1.54 | 1.43 | 1.32 | 1.22 | 1.04 | 0.93 | 0.74 | 0.63 | 0.50 | 0.40 | 0.35 | 0.23 | 0.22 | 0.25 | ||||||
| Share price1, 3 | 91.94 | 84.78 | 116.73 | 186.94 | 199.24 | 162.54 | 202.55 | 191.32 | 165.76 | 145.31 | 153.34 | 110.19 | 111.98 | 90.87 | 91.03 | 83.13 | 87.30 | 100.80 | ||||||
| Valuation Ratio | ||||||||||||||||||||||||
| P/OP ratio4 | 56.59 | 46.59 | 66.94 | 110.78 | 129.43 | 113.44 | 152.95 | 156.40 | 159.12 | 156.78 | 206.26 | 174.57 | 225.29 | 224.97 | 260.27 | 357.28 | 404.46 | 408.10 | ||||||
| Benchmarks | ||||||||||||||||||||||||
| P/OP Ratio, Competitors5 | ||||||||||||||||||||||||
| Accenture PLC | 12.02 | 16.37 | 14.62 | 16.89 | 18.52 | 23.34 | 23.52 | 20.96 | 24.43 | 24.40 | 21.69 | 21.16 | 18.24 | 17.50 | 16.83 | 19.98 | 23.62 | 31.03 | ||||||
| Adobe Inc. | 9.02 | 10.70 | 14.34 | 17.60 | 20.00 | 21.20 | 26.38 | 34.93 | 37.61 | 37.84 | 40.52 | 35.69 | 35.47 | 28.49 | 25.85 | 21.47 | 28.50 | 36.67 | ||||||
| AppLovin Corp. | 26.44 | 33.14 | 33.47 | 59.84 | 44.93 | 43.26 | 58.16 | 36.85 | 18.93 | 26.27 | 31.12 | 37.82 | 46.66 | 45.96 | — | 182.48 | 465.09 | 1,412.13 | ||||||
| Cadence Design Systems Inc. | 51.76 | 60.21 | 54.20 | 62.56 | 71.69 | 55.59 | 52.42 | 64.64 | 62.16 | 64.10 | 65.43 | 57.98 | 59.96 | 53.91 | 47.21 | 41.53 | 46.31 | 46.60 | ||||||
| CrowdStrike Holdings Inc. | — | — | — | — | 1,246.46 | 3,413.45 | — | — | — | — | — | — | — | — | — | — | — | — | ||||||
| Datadog Inc. | 5,042.09 | — | — | — | — | 1,225.87 | 797.11 | 582.08 | 786.59 | 2,905.50 | — | — | — | — | — | — | 3,299.68 | 8,476.50 | ||||||
| International Business Machines Corp. | 16.30 | 17.75 | 18.20 | 23.84 | 23.57 | 22.11 | 25.48 | 20.07 | 18.25 | 16.26 | 17.99 | 14.81 | 15.22 | 13.98 | 14.35 | 15.37 | 15.24 | 17.07 | ||||||
| Intuit Inc. | 20.02 | 34.22 | 37.87 | 41.91 | 40.68 | 52.88 | 48.11 | 48.74 | 53.07 | 46.91 | 49.04 | 41.32 | 43.34 | 43.50 | 46.05 | 33.22 | 53.54 | 71.64 | ||||||
| Microsoft Corp. | 25.09 | 29.61 | 29.68 | 24.05 | 27.94 | 28.44 | 28.73 | 28.04 | 30.20 | 26.16 | 27.76 | 24.15 | 21.76 | 22.07 | 24.72 | 24.66 | 27.51 | 31.35 | ||||||
| Oracle Corp. | 30.92 | 51.94 | 33.50 | 23.43 | 29.86 | 26.92 | 25.65 | 23.67 | 19.36 | 21.82 | 25.30 | 16.87 | 15.50 | 20.25 | 16.51 | 18.93 | 24.87 | 15.78 | ||||||
| Palantir Technologies Inc. | 148.36 | 163.57 | 224.99 | 535.05 | 721.72 | 633.43 | 941.61 | 318.98 | 203.93 | 242.24 | 431.61 | 1,130.92 | — | — | — | — | — | — | ||||||
| Palo Alto Networks Inc. | 87.42 | 101.94 | 102.53 | 122.82 | 140.59 | 172.78 | 159.88 | 144.37 | 140.84 | 132.93 | 193.40 | 418.85 | 2,481.12 | — | — | — | — | — | ||||||
| Salesforce Inc. | 29.08 | 34.31 | 38.94 | 50.24 | 37.14 | 33.49 | 58.80 | 65.09 | 79.66 | 145.83 | 177.62 | 295.77 | 2,318.80 | 818.64 | 357.52 | 280.57 | 236.57 | 228.93 | ||||||
| Synopsys Inc. | 165.05 | 99.34 | 100.63 | 101.65 | 55.22 | 57.97 | 56.25 | 56.16 | 63.80 | 64.29 | 67.90 | 61.35 | 62.50 | 50.41 | 43.85 | 48.91 | 42.54 | 47.17 | ||||||
| Workday Inc. | 112.10 | 162.95 | 155.71 | 166.90 | 201.96 | 210.15 | 381.31 | 4,065.25 | — | — | — | — | — | — | — | — | — | — | ||||||
Based on: 10-Q (reporting date: 2026-06-30), 10-Q (reporting date: 2026-03-31), 10-K (reporting date: 2025-12-31), 10-Q (reporting date: 2025-09-30), 10-Q (reporting date: 2025-06-30), 10-Q (reporting date: 2025-03-31), 10-K (reporting date: 2024-12-31), 10-Q (reporting date: 2024-09-30), 10-Q (reporting date: 2024-06-30), 10-Q (reporting date: 2024-03-31), 10-K (reporting date: 2023-12-31), 10-Q (reporting date: 2023-09-30), 10-Q (reporting date: 2023-06-30), 10-Q (reporting date: 2023-03-31), 10-K (reporting date: 2022-12-31), 10-Q (reporting date: 2022-09-30), 10-Q (reporting date: 2022-06-30), 10-Q (reporting date: 2022-03-31).
1 Data adjusted for splits and stock dividends.
2 Q2 2026 Calculation
Operating profit per share
= (Income from operationsQ2 2026
+ Income from operationsQ1 2026
+ Income from operationsQ4 2025
+ Income from operationsQ3 2025)
÷ No. shares of common stock outstanding
= (162,000,000 + 503,000,000 + 443,000,000 + 572,000,000)
÷ 1,034,000,000 = 1.62
3 Closing price as at the filing date of ServiceNow Inc. Quarterly or Annual Report.
4 Q2 2026 Calculation
P/OP ratio = Share price ÷ Operating profit per share
= 91.94 ÷ 1.62 = 56.59
5 Click competitor name to see calculations.
A comprehensive analysis of the valuation metrics reveals a significant and sustained contraction in the Price to Operating Profit (P/OP) ratio from March 2022 through June 2026. This trend is characterized by a divergence between operating profitability, which grew consistently, and the share price, which exhibited high volatility and a late-period decline.
- Price to Operating Profit (P/OP) Ratio Trend
- The P/OP ratio experienced a substantial decline, falling from a peak of 408.10 in March 2022 to a low of 46.59 in March 2026. While the ratio showed some temporary stabilization between March 2024 and December 2024, a sharp acceleration in compression occurred throughout 2025 and early 2026, indicating a marked reduction in the premium the market was willing to pay per unit of operating profit.
- Operating Profit per Share Growth
- Operating profit per share demonstrated a consistent and nearly linear upward trajectory. Starting at 0.25 USD in March 2022, the value increased steadily to reach a peak of 1.82 USD in March 2026. This sustained growth indicates a strong improvement in operational efficiency and earnings power, which continued independently of the fluctuations in the equity price.
- Share Price Dynamics and Valuation Impact
- The share price underwent three distinct phases: an initial period of volatility in 2022, a significant appreciation peaking at 202.55 USD in December 2024, and a subsequent sharp correction ending at 91.94 USD in June 2026. The P/OP ratio's decline was initially driven by the growth of operating profits outpacing the share price; however, in the final year of the period, the ratio collapsed primarily due to the sharp decrease in share price occurring simultaneously with continued profit expansion.
The overall data indicates a transition from a highly speculative valuation multiple to a significantly more conservative one. The resilience of the operating profit per share served as a primary driver for the reduction of the P/OP ratio, particularly during the price correction phase of 2025 and 2026.
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Price to Sales (P/S)
ServiceNow Inc., historical P/S calculation (quarterly data)
| Jun 30, 2026 | Mar 31, 2026 | Dec 31, 2025 | Sep 30, 2025 | Jun 30, 2025 | Mar 31, 2025 | Dec 31, 2024 | Sep 30, 2024 | Jun 30, 2024 | Mar 31, 2024 | Dec 31, 2023 | Sep 30, 2023 | Jun 30, 2023 | Mar 31, 2023 | Dec 31, 2022 | Sep 30, 2022 | Jun 30, 2022 | Mar 31, 2022 | |||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| No. shares of common stock outstanding1 | 1,034,000,000 | 1,031,000,000 | 1,046,000,000 | 1,040,000,000 | 1,040,000,000 | 1,035,000,000 | 1,030,000,000 | 1,030,000,000 | 1,030,000,000 | 1,025,000,000 | 1,025,000,000 | 1,025,000,000 | 1,020,000,000 | 1,020,000,000 | 1,015,000,000 | 1,010,000,000 | 1,010,000,000 | 1,000,000,000 | ||||||
| Selected Financial Data (US$) | ||||||||||||||||||||||||
| Revenues (in millions) | 3,987) | 3,770) | 3,568) | 3,407) | 3,215) | 3,088) | 2,957) | 2,797) | 2,627) | 2,603) | 2,437) | 2,288) | 2,150) | 2,096) | 1,940) | 1,831) | 1,752) | 1,722) | ||||||
| Sales per share2 | 14.25 | 13.54 | 12.69 | 12.18 | 11.59 | 11.08 | 10.66 | 10.16 | 9.67 | 9.25 | 8.75 | 8.27 | 7.86 | 7.47 | 7.14 | 6.85 | 6.54 | 6.26 | ||||||
| Share price1, 3 | 91.94 | 84.78 | 116.73 | 186.94 | 199.24 | 162.54 | 202.55 | 191.32 | 165.76 | 145.31 | 153.34 | 110.19 | 111.98 | 90.87 | 91.03 | 83.13 | 87.30 | 100.80 | ||||||
| Valuation Ratio | ||||||||||||||||||||||||
| P/S ratio4 | 6.45 | 6.26 | 9.20 | 15.35 | 17.19 | 14.67 | 18.99 | 18.83 | 17.15 | 15.71 | 17.52 | 13.33 | 14.25 | 12.17 | 12.75 | 12.13 | 13.36 | 16.11 | ||||||
| Benchmarks | ||||||||||||||||||||||||
| P/S Ratio, Competitors5 | ||||||||||||||||||||||||
| Accenture PLC | 1.73 | 2.35 | 2.15 | 2.60 | 2.80 | 3.51 | 3.48 | 2.98 | 3.36 | 3.32 | 2.98 | 3.05 | 2.72 | 2.67 | 2.56 | 3.04 | 3.57 | 4.72 | ||||||
| Adobe Inc. | 3.26 | 3.92 | 5.25 | 6.38 | 7.27 | 7.69 | 8.27 | 10.88 | 11.47 | 11.33 | 13.88 | 12.12 | 11.93 | 9.66 | 8.95 | 7.61 | 10.33 | 13.47 | ||||||
| AppLovin Corp. | 20.47 | 25.55 | 25.35 | 40.14 | 26.48 | 21.35 | 23.14 | 13.19 | 5.68 | 6.71 | 6.14 | 4.44 | 3.55 | 2.23 | 1.80 | 2.08 | 4.61 | 5.30 | ||||||
| Cadence Design Systems Inc. | 15.70 | 17.01 | 15.27 | 17.83 | 19.87 | 16.68 | 15.26 | 18.27 | 17.52 | 18.53 | 20.02 | 16.65 | 17.25 | 15.77 | 14.23 | 12.80 | 13.99 | 13.21 | ||||||
| CrowdStrike Holdings Inc. | 25.55 | 27.75 | 19.37 | 22.89 | 18.94 | 25.36 | 26.10 | 19.77 | 14.73 | 15.27 | 12.81 | 13.55 | 23.24 | 22.99 | 30.15 | 37.35 | 54.14 | 46.77 | ||||||
| Datadog Inc. | 20.76 | 18.30 | 12.53 | 20.88 | 15.14 | 12.92 | 16.12 | 16.67 | 15.81 | 17.37 | 20.19 | 16.72 | 14.86 | 13.74 | 14.64 | 14.59 | 26.18 | 29.04 | ||||||
| International Business Machines Corp. | 2.82 | 3.15 | 3.19 | 4.07 | 3.79 | 3.39 | 3.81 | 3.03 | 2.82 | 2.46 | 2.73 | 2.16 | 2.11 | 1.89 | 1.94 | 1.99 | 1.95 | 2.10 | ||||||
| Intuit Inc. | 5.42 | 9.13 | 9.90 | 10.22 | 9.05 | 11.46 | 10.72 | 11.71 | 12.20 | 10.73 | 10.72 | 8.95 | 8.44 | 8.01 | 9.30 | 7.87 | 12.04 | 17.26 | ||||||
| Microsoft Corp. | 11.71 | 13.70 | 13.54 | 10.88 | 12.56 | 12.65 | 12.82 | 12.54 | 13.34 | 11.25 | 11.60 | 9.86 | 8.83 | 9.20 | 10.40 | 10.50 | 11.70 | 13.21 | ||||||
| Oracle Corp. | 9.36 | 15.81 | 10.32 | 7.25 | 9.05 | 8.03 | 7.44 | 6.68 | 5.37 | 5.89 | 6.63 | 4.73 | 4.71 | 4.64 | 4.25 | 4.96 | 6.62 | 5.96 | ||||||
| Palantir Technologies Inc. | 63.50 | 62.37 | 71.09 | 116.68 | 119.47 | 82.47 | 102.00 | 44.01 | 24.02 | 20.42 | 23.27 | 19.34 | 17.93 | 10.19 | 9.34 | 7.98 | 11.62 | 9.27 | ||||||
| Palo Alto Networks Inc. | 12.57 | 13.50 | 13.82 | 13.62 | 15.45 | 15.74 | 13.62 | 12.95 | 11.25 | 10.83 | 10.87 | 9.63 | 9.23 | 8.70 | 9.62 | 9.22 | 9.68 | 11.48 | ||||||
| Salesforce Inc. | 5.88 | 6.61 | 7.40 | 9.47 | 6.74 | 5.91 | 8.45 | 7.18 | 6.52 | 6.44 | 5.84 | 4.85 | 5.93 | 6.27 | 7.40 | 10.30 | 11.09 | 9.72 | ||||||
| Synopsys Inc. | 11.60 | 10.75 | 13.05 | 17.44 | 11.53 | 11.98 | 12.45 | 13.60 | 14.87 | 14.65 | 14.75 | 11.72 | 11.75 | 10.44 | 10.03 | 11.21 | 9.86 | 9.78 | ||||||
| Workday Inc. | 6.59 | 7.31 | 7.65 | 8.57 | 8.77 | 7.41 | 9.61 | 8.94 | 8.77 | 7.93 | 7.71 | 6.19 | 7.33 | 7.91 | 11.19 | 15.28 | 13.10 | 13.09 | ||||||
Based on: 10-Q (reporting date: 2026-06-30), 10-Q (reporting date: 2026-03-31), 10-K (reporting date: 2025-12-31), 10-Q (reporting date: 2025-09-30), 10-Q (reporting date: 2025-06-30), 10-Q (reporting date: 2025-03-31), 10-K (reporting date: 2024-12-31), 10-Q (reporting date: 2024-09-30), 10-Q (reporting date: 2024-06-30), 10-Q (reporting date: 2024-03-31), 10-K (reporting date: 2023-12-31), 10-Q (reporting date: 2023-09-30), 10-Q (reporting date: 2023-06-30), 10-Q (reporting date: 2023-03-31), 10-K (reporting date: 2022-12-31), 10-Q (reporting date: 2022-09-30), 10-Q (reporting date: 2022-06-30), 10-Q (reporting date: 2022-03-31).
1 Data adjusted for splits and stock dividends.
2 Q2 2026 Calculation
Sales per share
= (RevenuesQ2 2026
+ RevenuesQ1 2026
+ RevenuesQ4 2025
+ RevenuesQ3 2025)
÷ No. shares of common stock outstanding
= (3,987,000,000 + 3,770,000,000 + 3,568,000,000 + 3,407,000,000)
÷ 1,034,000,000 = 14.25
3 Closing price as at the filing date of ServiceNow Inc. Quarterly or Annual Report.
4 Q2 2026 Calculation
P/S ratio = Share price ÷ Sales per share
= 91.94 ÷ 14.25 = 6.45
5 Click competitor name to see calculations.
The valuation metrics exhibit a period of significant volatility characterized by a decoupling between organic revenue growth and market pricing. While operational performance showed consistent improvement, the valuation multiple experienced a cycle of expansion followed by a severe contraction.
- Sales per Share Growth
- A steady and uninterrupted upward trend is observed in sales per share, rising from 6.26 US$ in March 2022 to 14.25 US$ by June 2026. This consistent growth indicates a stable increase in revenue generation on a per-share basis throughout the entire period.
- Share Price Fluctuations
- The share price demonstrated high volatility. After an initial decline to 83.13 US$ in September 2022, the price entered a strong bullish phase, peaking at 202.55 US$ in December 2024. This was followed by a sharp correction, with the price falling to a period low of 84.78 US$ by March 2026, before a marginal recovery to 91.94 US$ in June 2026.
- Price-to-Sales (P/S) Ratio Dynamics
- The P/S ratio reflected the volatility of the share price more than the stability of the sales growth. The ratio initially contracted from 16.11 in March 2022 to 12.13 in September 2022, then expanded to a peak of 18.99 in December 2024. A significant valuation compression occurred between December 2024 and March 2026, where the ratio dropped sharply from 18.99 to 6.26, marking a substantial reduction in the multiple the market was willing to pay for each dollar of sales.
The divergence between the linear growth in sales per share and the erratic movement of the P/S ratio suggests that the valuation was driven primarily by market sentiment and external pricing pressures rather than fundamental revenue performance. The period concludes with a valuation multiple significantly lower than the starting point, despite the company achieving more than double the sales per share over the analyzed timeframe.
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Price to Book Value (P/BV)
ServiceNow Inc., historical P/BV calculation (quarterly data)
| Jun 30, 2026 | Mar 31, 2026 | Dec 31, 2025 | Sep 30, 2025 | Jun 30, 2025 | Mar 31, 2025 | Dec 31, 2024 | Sep 30, 2024 | Jun 30, 2024 | Mar 31, 2024 | Dec 31, 2023 | Sep 30, 2023 | Jun 30, 2023 | Mar 31, 2023 | Dec 31, 2022 | Sep 30, 2022 | Jun 30, 2022 | Mar 31, 2022 | |||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| No. shares of common stock outstanding1 | 1,034,000,000 | 1,031,000,000 | 1,046,000,000 | 1,040,000,000 | 1,040,000,000 | 1,035,000,000 | 1,030,000,000 | 1,030,000,000 | 1,030,000,000 | 1,025,000,000 | 1,025,000,000 | 1,025,000,000 | 1,020,000,000 | 1,020,000,000 | 1,015,000,000 | 1,010,000,000 | 1,010,000,000 | 1,000,000,000 | ||||||
| Selected Financial Data (US$) | ||||||||||||||||||||||||
| Stockholders’ equity (in millions) | 12,516) | 11,728) | 12,964) | 11,301) | 10,932) | 10,139) | 9,609) | 9,290) | 8,666) | 8,107) | 7,628) | 7,182) | 6,926) | 5,600) | 5,032) | 4,523) | 4,194) | 3,997) | ||||||
| Book value per share (BVPS)2 | 12.10 | 11.38 | 12.39 | 10.87 | 10.51 | 9.80 | 9.33 | 9.02 | 8.41 | 7.91 | 7.44 | 7.01 | 6.79 | 5.49 | 4.96 | 4.48 | 4.15 | 4.00 | ||||||
| Share price1, 3 | 91.94 | 84.78 | 116.73 | 186.94 | 199.24 | 162.54 | 202.55 | 191.32 | 165.76 | 145.31 | 153.34 | 110.19 | 111.98 | 90.87 | 91.03 | 83.13 | 87.30 | 100.80 | ||||||
| Valuation Ratio | ||||||||||||||||||||||||
| P/BV ratio4 | 7.60 | 7.45 | 9.42 | 17.20 | 18.95 | 16.59 | 21.71 | 21.21 | 19.70 | 18.37 | 20.60 | 15.73 | 16.49 | 16.55 | 18.36 | 18.56 | 21.02 | 25.22 | ||||||
| Benchmarks | ||||||||||||||||||||||||
| P/BV Ratio, Competitors5 | ||||||||||||||||||||||||
| Accenture PLC | 4.01 | 5.38 | 4.79 | 5.82 | 6.44 | 7.98 | 7.98 | 6.92 | 8.00 | 8.03 | 7.44 | 7.65 | 7.22 | 7.26 | 7.13 | 8.46 | 9.85 | 12.45 | ||||||
| Adobe Inc. | 7.12 | 8.39 | 10.74 | 12.56 | 14.36 | 12.95 | 12.61 | 15.67 | 15.79 | 14.62 | 16.31 | 14.51 | 14.82 | 12.24 | 11.22 | 9.10 | 12.33 | 15.78 | ||||||
| AppLovin Corp. | 44.20 | 66.64 | 65.10 | 141.48 | 113.19 | 178.46 | 99.97 | 60.29 | 27.56 | 32.03 | 16.06 | 12.29 | 6.74 | 3.42 | 2.67 | 3.22 | 7.06 | 7.41 | ||||||
| Cadence Design Systems Inc. | 13.36 | 14.33 | 14.77 | 17.88 | 20.19 | 17.02 | 15.15 | 17.43 | 17.12 | 21.18 | 24.05 | 20.96 | 22.55 | 19.75 | 18.46 | 16.23 | 17.49 | 15.10 | ||||||
| CrowdStrike Holdings Inc. | 29.53 | 33.27 | 23.35 | 28.00 | 23.34 | 32.84 | 34.61 | 27.75 | 21.18 | 23.27 | 19.61 | 20.98 | 34.78 | 34.12 | 42.67 | 50.64 | 68.12 | 55.03 | ||||||
| Datadog Inc. | 18.85 | 16.84 | 11.50 | 19.50 | 14.29 | 12.55 | 15.94 | 16.08 | 15.73 | 17.81 | 21.22 | 18.59 | 17.10 | 16.30 | 17.39 | 17.33 | 29.42 | 31.03 | ||||||
| International Business Machines Corp. | 5.65 | 6.59 | 6.59 | 9.55 | 8.82 | 7.93 | 8.75 | 7.75 | 7.32 | 6.56 | 7.49 | 5.72 | 5.76 | 5.29 | 5.34 | 5.99 | 5.98 | 6.43 | ||||||
| Intuit Inc. | 5.72 | 9.18 | 9.46 | 9.23 | 8.65 | 10.48 | 9.47 | 9.87 | 10.89 | 9.31 | 8.92 | 7.16 | 7.29 | 6.64 | 7.20 | 5.97 | 8.81 | 18.30 | ||||||
| Microsoft Corp. | 9.15 | 11.09 | 11.11 | 9.13 | 10.86 | 11.18 | 11.71 | 11.72 | 12.74 | 11.13 | 11.92 | 10.52 | 9.84 | 10.77 | 12.38 | 12.40 | 13.52 | 15.32 | ||||||
| Oracle Corp. | 19.08 | 38.63 | 28.96 | 24.17 | 36.17 | 39.94 | 45.25 | 62.34 | 71.68 | 126.71 | 308.71 | — | — | — | — | — | — | — | ||||||
| Palantir Technologies Inc. | 39.99 | 38.56 | 43.07 | 68.98 | 69.33 | 47.36 | 58.42 | 25.89 | 14.70 | 12.62 | 14.90 | 12.89 | 12.41 | 7.43 | 6.94 | 6.12 | 8.63 | 6.46 | ||||||
| Palo Alto Networks Inc. | 13.24 | 14.89 | 16.29 | 16.72 | 20.77 | 22.07 | 21.15 | 22.59 | 19.43 | 35.97 | 42.84 | 50.71 | 77.94 | 99.68 | 252.00 | 141.27 | 399.29 | 100.84 | ||||||
| Salesforce Inc. | 3.79 | 4.21 | 4.59 | 6.02 | 4.26 | 3.54 | 4.94 | 4.20 | 3.71 | 3.61 | 3.13 | 2.48 | 2.89 | 2.98 | 3.37 | 4.51 | 4.70 | 5.10 | ||||||
| Synopsys Inc. | 3.30 | 2.82 | 3.25 | 4.07 | 7.24 | 7.82 | 8.48 | 10.75 | 12.58 | 13.16 | 14.02 | 10.87 | 10.66 | 9.58 | 9.24 | 9.90 | 8.43 | 8.17 | ||||||
| Workday Inc. | 6.44 | 7.13 | 7.15 | 8.10 | 8.27 | 6.87 | 8.63 | 9.42 | 9.39 | 8.63 | 8.58 | 6.81 | 8.11 | 8.93 | 12.68 | 17.74 | 15.82 | 17.19 | ||||||
Based on: 10-Q (reporting date: 2026-06-30), 10-Q (reporting date: 2026-03-31), 10-K (reporting date: 2025-12-31), 10-Q (reporting date: 2025-09-30), 10-Q (reporting date: 2025-06-30), 10-Q (reporting date: 2025-03-31), 10-K (reporting date: 2024-12-31), 10-Q (reporting date: 2024-09-30), 10-Q (reporting date: 2024-06-30), 10-Q (reporting date: 2024-03-31), 10-K (reporting date: 2023-12-31), 10-Q (reporting date: 2023-09-30), 10-Q (reporting date: 2023-06-30), 10-Q (reporting date: 2023-03-31), 10-K (reporting date: 2022-12-31), 10-Q (reporting date: 2022-09-30), 10-Q (reporting date: 2022-06-30), 10-Q (reporting date: 2022-03-31).
1 Data adjusted for splits and stock dividends.
2 Q2 2026 Calculation
BVPS = Stockholders’ equity ÷ No. shares of common stock outstanding
= 12,516,000,000 ÷ 1,034,000,000 = 12.10
3 Closing price as at the filing date of ServiceNow Inc. Quarterly or Annual Report.
4 Q2 2026 Calculation
P/BV ratio = Share price ÷ BVPS
= 91.94 ÷ 12.10 = 7.60
5 Click competitor name to see calculations.
The analysis of valuation metrics reveals a complex relationship between the asset base and market pricing, with the Price to Book Value (P/BV) ratio exhibiting three distinct phases of movement over the analyzed period.
- Book Value per Share (BVPS) Progression
- A consistent upward trajectory is observed in the book value per share, which grew from 4.00 US$ in March 2022 to 12.10 US$ by June 2026. This steady increase indicates a continuous expansion of the company's net asset value, with only a minor temporary contraction occurring in March 2026.
- P/BV Ratio Fluctuations
- The P/BV ratio experienced an initial contraction phase, falling from a peak of 25.22 in March 2022 to 15.73 by September 2023. This was followed by a period of expansion where the ratio recovered to 21.71 by December 2024, driven by a significant increase in the share price to 202.55 US$.
- Valuation Correction and Compression
- A sharp downward correction in the P/BV ratio occurred between March 2025 and June 2026. The ratio dropped from 16.59 in March 2025 to a period low of 7.45 in March 2026, eventually stabilizing at 7.60 by June 2026. This compression is primarily attributed to a substantial decline in the share price, which fell to 84.78 US$ in March 2026, effectively decoupling the market price from the growing book value.
In summary, while the intrinsic book value of the shares demonstrated sustainable growth throughout the period, the market valuation multiple underwent a significant correction. The resulting P/BV ratio by mid-2026 represents a substantially lower premium over book value than what was observed in early 2022.
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