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).
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Historical Valuation Ratios (Summary)
ServiceNow Inc., historical price multiples (quarterly data)
Based on: 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 for the period between March 31, 2022, and March 31, 2026, exhibit a general trend of contraction, punctuated by a period of expansion in 2024 followed by a sharp decline in 2025 and 2026. The initial phase of the period was characterized by exceptionally high multiples, suggesting a high growth premium that gradually normalized over time.
- Earnings and Operating Profit Multiples
- The Price to Earnings (P/E) ratio began at a peak of 452.02 in March 2022, followed by a sustained decline to 71.21 by September 2023. A secondary expansion occurred throughout 2024, with the ratio peaking again at 148.98 in June 2024. However, the ratio experienced a significant collapse toward the end of the sequence, reaching its lowest point of 49.75 by March 31, 2026. The Price to Operating Profit (P/OP) ratio mirrored this trajectory almost exactly, declining from 408.10 to 46.59 over the same duration, indicating a consistent correlation between market pricing and both net and operating profitability.
- Revenue Multiples
- The Price to Sales (P/S) ratio demonstrated more volatility than a linear decline. After starting at 16.11, it dipped to a low of 12.13 in September 2022 before climbing to a period high of 18.99 in December 2024. A precipitous drop is observed starting in late 2025, with the ratio falling to 9.20 in September 2025 and further contracting to 6.26 by March 31, 2026, representing a substantial reduction in the revenue multiple.
- Book Value Multiples
- The Price to Book Value (P/BV) ratio followed a similar cyclical pattern. It decreased from 25.22 in March 2022 to 15.73 in September 2023, followed by a recovery to 21.71 by December 2024. Similar to the other metrics, a sharp downward correction occurred in the final quarters, with the ratio falling to 7.45 by March 31, 2026.
Overall, the data indicates a significant shift in valuation regimes. The high multiples of 2022 suggest a period of aggressive growth pricing, while the consistent decline across all four metrics through 2026 suggests a transition toward more conservative valuation levels or a fundamental shift in the market's assessment of the company's growth trajectory.
Price to Earnings (P/E)
ServiceNow Inc., historical P/E calculation (quarterly data)
| 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 | |||||||||||||||||||||||
| Selected Financial Data (US$) | |||||||||||||||||||||||
| Net income (in millions) | |||||||||||||||||||||||
| Earnings per share (EPS)2 | |||||||||||||||||||||||
| Share price1, 3 | |||||||||||||||||||||||
| Valuation Ratio | |||||||||||||||||||||||
| P/E ratio4 | |||||||||||||||||||||||
| Benchmarks | |||||||||||||||||||||||
| P/E Ratio, Competitors5 | |||||||||||||||||||||||
| 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. | |||||||||||||||||||||||
Based on: 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 Q1 2026 Calculation
EPS
= (Net incomeQ1 2026
+ Net incomeQ4 2025
+ Net incomeQ3 2025
+ Net incomeQ2 2025)
÷ No. shares of common stock outstanding
= ( + + + )
÷ =
3 Closing price as at the filing date of ServiceNow Inc. Quarterly or Annual Report.
4 Q1 2026 Calculation
P/E ratio = Share price ÷ EPS
= ÷ =
5 Click competitor name to see calculations.
The valuation metrics exhibit a transition from a high-growth, high-multiple phase to a period of fundamental stabilization followed by a significant contraction in market valuation. A clear divergence is observed between the trajectory of earnings growth and the volatility of the share price over the analyzed timeframe.
- Price to Earnings (P/E) Ratio Trends
- The P/E ratio began at an extremely elevated level of 452.02 in March 2022, undergoing a substantial compression to 80.21 by June 2023. This represents a shift from a valuation based on future expectations to one more closely aligned with realized earnings. After a period of fluctuation between 71.21 and 148.98 throughout 2023 and 2024, the ratio entered a steady decline in 2025, reaching a period low of 49.75 by March 2026.
- Earnings per Share (EPS) Growth
- A consistent and positive trajectory in EPS is evident. Earnings grew modestly from 0.22 in March 2022 to 0.39 in March 2023, followed by a sharp increase to 1.40 in June 2023. This upward trend persisted throughout the duration of the period, culminating in a peak of 1.70 in March 2026, indicating a sustained improvement in bottom-line profitability.
- Share Price Movement
- The share price followed a cyclical pattern, initially declining from 100.80 in March 2022 to a low of 83.13 in September 2022. A prolonged recovery phase followed, with the price reaching a peak of 202.55 in December 2024. However, a significant corrective trend occurred between December 2024 and March 2026, with the share price falling to 84.78.
- Correlation between Price and Earnings
- The initial compression of the P/E ratio between 2022 and early 2023 was primarily driven by the rapid scaling of EPS. Conversely, the reduction in the P/E ratio observed from December 2025 to March 2026 was driven by a sharp decline in share price rather than earnings volatility, as EPS remained stable and continued to grow during this final phase.
Price to Operating Profit (P/OP)
ServiceNow Inc., historical P/OP calculation (quarterly data)
| 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 | |||||||||||||||||||||||
| Selected Financial Data (US$) | |||||||||||||||||||||||
| Income from operations (in millions) | |||||||||||||||||||||||
| Operating profit per share2 | |||||||||||||||||||||||
| Share price1, 3 | |||||||||||||||||||||||
| Valuation Ratio | |||||||||||||||||||||||
| P/OP ratio4 | |||||||||||||||||||||||
| Benchmarks | |||||||||||||||||||||||
| P/OP Ratio, Competitors5 | |||||||||||||||||||||||
| 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. | |||||||||||||||||||||||
Based on: 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 Q1 2026 Calculation
Operating profit per share
= (Income from operationsQ1 2026
+ Income from operationsQ4 2025
+ Income from operationsQ3 2025
+ Income from operationsQ2 2025)
÷ No. shares of common stock outstanding
= ( + + + )
÷ =
3 Closing price as at the filing date of ServiceNow Inc. Quarterly or Annual Report.
4 Q1 2026 Calculation
P/OP ratio = Share price ÷ Operating profit per share
= ÷ =
5 Click competitor name to see calculations.
The valuation of the entity exhibits a significant contraction in the Price to Operating Profit (P/OP) ratio over the analyzed period, transitioning from a highly premium valuation to a substantially lower multiple.
- Operating Profitability Trends
- Operating profit per share demonstrates a consistent and uninterrupted upward trajectory. From a starting point of 0.25 USD in March 2022, the figure increased steadily to 1.82 USD by March 2026. This represents a strong and stable growth in fundamental operational earnings regardless of market price fluctuations.
- Share Price Dynamics
- The share price experienced a period of significant appreciation, rising from 100.80 USD in March 2022 to a peak of 202.55 USD in December 2024. However, this trend reversed sharply in 2025 and early 2026, with the price declining to 84.78 USD by March 2026.
- Price to Operating Profit (P/OP) Analysis
- The P/OP ratio reflects a systematic compression. The ratio began at a high of 408.10 in March 2022 and declined steadily throughout 2023 and 2024. A more accelerated decline occurred between June 2025 and March 2026, where the ratio fell from 129.43 to 46.59. This trend indicates that the market valuation shifted from an aggressive growth-based premium to a more conservative multiple, driven by both the collapse in share price and the simultaneous increase in operating profit per share.
Price to Sales (P/S)
ServiceNow Inc., historical P/S calculation (quarterly data)
| 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 | |||||||||||||||||||||||
| Selected Financial Data (US$) | |||||||||||||||||||||||
| Revenues (in millions) | |||||||||||||||||||||||
| Sales per share2 | |||||||||||||||||||||||
| Share price1, 3 | |||||||||||||||||||||||
| Valuation Ratio | |||||||||||||||||||||||
| P/S ratio4 | |||||||||||||||||||||||
| Benchmarks | |||||||||||||||||||||||
| P/S Ratio, Competitors5 | |||||||||||||||||||||||
| 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. | |||||||||||||||||||||||
Based on: 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 Q1 2026 Calculation
Sales per share
= (RevenuesQ1 2026
+ RevenuesQ4 2025
+ RevenuesQ3 2025
+ RevenuesQ2 2025)
÷ No. shares of common stock outstanding
= ( + + + )
÷ =
3 Closing price as at the filing date of ServiceNow Inc. Quarterly or Annual Report.
4 Q1 2026 Calculation
P/S ratio = Share price ÷ Sales per share
= ÷ =
5 Click competitor name to see calculations.
An analysis of the Price to Sales (P/S) ratio reveals a period of significant valuation volatility contrasted against a steady, uninterrupted increase in underlying revenue performance. While sales per share demonstrated consistent growth over the reported period, the valuation multiple fluctuated primarily in response to share price movements rather than changes in revenue trajectory.
- Revenue Performance per Share
- A consistent upward trend is observed in sales per share, which grew linearly from 6.26 US$ in March 2022 to 13.54 US$ by March 2026. This continuous growth indicates a strong and stable expansion of the company's top-line performance on a per-share basis throughout the entire observed period.
- Share Price Volatility
- The share price exhibited a cyclical pattern, characterized by an initial decline in 2022, followed by a sustained rally that peaked at 202.55 US$ in December 2024. Following this peak, a sharp and precipitous decline occurred, with the price falling to 84.78 US$ by March 2026, marking a significant reduction in market capitalization.
- P/S Ratio Dynamics
- The P/S ratio mirrored the volatility of the share price. After an initial contraction from 16.11 in March 2022 to a low of 12.13 in September 2022, the ratio expanded alongside the share price, reaching a peak of 18.99 in December 2024. This indicates a period of premium valuation where the market was willing to pay a higher multiple for each dollar of sales.
- Valuation Contraction
- A severe valuation compression is evident starting in early 2025. Despite the continued growth in sales per share, the P/S ratio dropped from 14.67 in March 2025 to 6.26 by March 2026. This sharp decline suggests a significant market re-rating, as the valuation multiple fell to its lowest point in the series despite the company's improving revenue fundamentals.
Price to Book Value (P/BV)
ServiceNow Inc., historical P/BV calculation (quarterly data)
| 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 | |||||||||||||||||||||||
| Selected Financial Data (US$) | |||||||||||||||||||||||
| Stockholders’ equity (in millions) | |||||||||||||||||||||||
| Book value per share (BVPS)2 | |||||||||||||||||||||||
| Share price1, 3 | |||||||||||||||||||||||
| Valuation Ratio | |||||||||||||||||||||||
| P/BV ratio4 | |||||||||||||||||||||||
| Benchmarks | |||||||||||||||||||||||
| P/BV Ratio, Competitors5 | |||||||||||||||||||||||
| 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. | |||||||||||||||||||||||
Based on: 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 Q1 2026 Calculation
BVPS = Stockholders’ equity ÷ No. shares of common stock outstanding
= ÷ =
3 Closing price as at the filing date of ServiceNow Inc. Quarterly or Annual Report.
4 Q1 2026 Calculation
P/BV ratio = Share price ÷ BVPS
= ÷ =
5 Click competitor name to see calculations.
The Price to Book Value (P/BV) ratio exhibits significant volatility over the analyzed period, characterized by an initial contraction, a mid-term recovery, and a sharp decline in the final quarters. While the book value per share maintained a consistent upward trajectory for the majority of the timeline, the P/BV ratio was primarily driven by substantial fluctuations in the market share price.
- Book Value per Share (BVPS) Trends
- A sustained growth pattern is observed in the book value per share, which rose steadily from 4.00 US$ in March 2022 to a peak of 12.39 US$ by December 2025. This represents a consistent accumulation of net assets relative to outstanding shares. A slight contraction occurred in the final quarter, with the value receding to 11.38 US$ in March 2026.
- Price to Book Value (P/BV) Ratio Fluctuations
- The P/BV ratio began at a premium of 25.22 in March 2022 and experienced a downward trend throughout 2022 and early 2023, reaching a localized low of 15.73 in September 2023. A recovery phase followed, with the ratio climbing back to 21.71 by December 2024, coinciding with a peak share price of 202.55 US$. However, a precipitous decline is noted in the final periods, with the ratio falling to 9.42 in December 2025 and further dropping to 7.45 by March 2026.
- Correlation Analysis
- The divergence between the steady increase in book value and the erratic movement of the P/BV ratio indicates that market sentiment and share price volatility were the primary determinants of the valuation multiple. The sharp compression of the P/BV ratio in late 2025 and early 2026 is directly attributable to a significant collapse in the share price, which fell from 199.24 US$ in June 2025 to 84.78 US$ in March 2026, far outpacing the marginal change in the underlying book value.