Discounted Cash Flow

Servicenow, Inc.

NOW · Based on 10 years of SEC filings

Average annual growth rates

Metric 10-Year 5-Year 3-Year
Sales
Free Cash Flow
Average (FCF & NI)
Net Income

Average annual growth is the mean year-over-year change across each period.

Endpoint CAGR (better for long term trend)

Metric 10-Year 5-Year 3-Year
Sales
Free Cash Flow
Average (FCF & NI)
Net Income

Endpoint CAGR is the compound annual rate from the first to last year in each period.

Projections use average year-over-year growth. Change this in Settings.

Projected growth rate

Free cash flow growth
10-year: — 5-year: — 3-year: —
Averaged growth (FCF & NI)
10-year: — 5-year: — 3-year: —
Net income growth
10-year: — 5-year: — 3-year: —
Sales growth (not added to calculations)
10-year: — 5-year: — 3-year: —

Click a greyed-out slider to switch metrics. Slide between the 10-year, 5-year, and 3-year historic growth rates for FCF, net income, or their average.

%
%

Historical inputs (10 fiscal years)

YEAR Sales Net Income Free Cash Flow Net Margin EPS (diluted)
2016 $1.4b $-451.8m $54.4m -32.5%
2017 $1.9b (39.0%) $-149.1m (67.0%) $492.3m (805.7%) -7.7% (76.3%)
2018 $2.6b (35.0%) $-26.7m (82.1%) $-26.7m (-105.4%) -1.0% (86.7%)
2019 $3.5b (32.6%) $626.7m (2446.8%) $971.1m (3736.5%) 18.1% (1869.3%) $3.36
2020 $4.5b (30.6%) $118.5m (-81.1%) $118.5m (-87.8%) 2.6% (-85.5%) $0.61 (-81.8%)
2021 $5.9b (30.5%) $230.1m (94.2%) $1.8b (1418.1%) 3.9% (48.9%) $1.16 (90.2%)
2022 $7.2b (22.9%) $325.0m (41.2%) $2.2b (20.8%) 4.5% (14.9%) $1.61 (38.8%)
2023 $9.0b (23.8%) $1.7b (432.6%) $2.7b (24.4%) 19.3% (330.1%) $8.48 (426.7%)
2024 $11.0b (22.4%) $1.4b (-17.7%) $3.4b (26.3%) 13.0% (-32.8%) $6.92 (-18.4%)
2025 $13.3b (20.9%) $1.7b (22.7%) $4.6b (34.0%) 13.2% (1.5%) $1.69 (-75.6%)

Base FCF: (latest fiscal year)

Discount rate: %

Terminal growth:

Projection period: years

Alt A decline yrs:

Alt B total yrs:

Values abbreviated: b = billions, m = millions, k = thousands.

Projected cash flows

Year Projected cash flow Discount Factor Present Value

PV of projected FCF:

Terminal FCF:

Terminal value:

PV of terminal value:

Enterprise value (DCF):

DCF price per share:

Current price:

Alternative DCF Models

Model Fair Value Upside PV(FCFs) PV(Terminal) Total Years
Standard (10yr→TV) 10 + TV
Alt A (Gradual Decline)
Alt B (30yr Hard Stop) N/A

This is a simplified DCF model for illustration. It uses reported free cash flow, a single growth assumption, fixed WACC, and a Gordon Growth terminal value. It is not investment advice.

+ 10YR Financials Balance Sheet (10YR) Cash Flow (10YR) DCF Model