Discounted Cash Flow (DCF) Analysis Levered
ServiceNow, Inc. (NOW)
$504.09
+18.56 (+3.82%)
All numbers are in Millions, Currency in USD
Free Cash Flow
Year A/P | 2017 Actual | 2018 Actual | 2019 Actual | 2020 Actual | 2021 Actual | 2022 Projected | 2023 Projected | 2024 Projected | 2025 Projected | 2026 Projected |
| Revenue | 1,933.03 | 2,608.82 | 3,460.44 | 4,519.48 | 5,896 | 7,792.54 | 10,299.12 | 13,611.99 | 17,990.49 | 23,777.40 |
|---|---|---|---|---|---|---|---|---|---|---|
| Revenue (%) | ||||||||||
| Operating Cash Flow | 642.82 | 811.09 | 1,235.97 | 1,786.60 | 2,191 | 2,754.73 | 3,640.83 | 4,811.95 | 6,359.79 | 8,405.51 |
| Operating Cash Flow (%) | ||||||||||
| Capital Expenditure | -157.18 | -248.86 | -337.58 | -432.52 | -399 | -682.06 | -901.45 | -1,191.41 | -1,574.65 | -2,081.16 |
| Capital Expenditure (%) | ||||||||||
| Free Cash Flow | 485.64 | 562.23 | 898.39 | 1,354.08 | 1,792 | 2,072.67 | 2,739.38 | 3,620.54 | 4,785.14 | 6,324.35 |
Weighted Average Cost Of Capital
| Share price | $ 504.09 |
|---|---|
| Beta | 1.093 |
| Diluted Shares Outstanding | 203 |
| Cost of Debt | |
| Tax Rate | 7.63 |
| After-tax Cost of Debt | 1.16% |
| Risk-Free Rate | |
| Market Risk Premium | |
| Cost of Equity | 8.286 |
| Total Debt | 2,214 |
| Total Equity | 102,330.27 |
| Total Capital | 104,544.27 |
| Debt Weighting | 2.12 |
| Equity Weighting | 97.88 |
| Wacc |
Build Up Free Cash Flow
Year A/P | 2017 Actual | 2018 Actual | 2019 Actual | 2020 Actual | 2021 Actual | 2022 Projected | 2023 Projected | 2024 Projected | 2025 Projected | 2026 Projected |
| Revenue | 1,933.03 | 2,608.82 | 3,460.44 | 4,519.48 | 5,896 | 7,792.54 | 10,299.12 | 13,611.99 | 17,990.49 | 23,777.40 |
|---|---|---|---|---|---|---|---|---|---|---|
| Operating Cash Flow | 642.82 | 811.09 | 1,235.97 | 1,786.60 | 2,191 | 2,754.73 | 3,640.83 | 4,811.95 | 6,359.79 | 8,405.51 |
| Capital Expenditure | -157.18 | -248.86 | -337.58 | -432.52 | -399 | -682.06 | -901.45 | -1,191.41 | -1,574.65 | -2,081.16 |
| Free Cash Flow | 485.64 | 562.23 | 898.39 | 1,354.08 | 1,792 | 2,072.67 | 2,739.38 | 3,620.54 | 4,785.14 | 6,324.35 |
| WACC | ||||||||||
| PV LFCF | 1,916.66 | 2,342.50 | 2,862.95 | 3,499.04 | 4,276.46 | |||||
| SUM PV LFCF | 14,897.61 |
Terminal Value
| Growth in perpetuity method: | |
|---|---|
| Long-term growth rate | |
| WACC (%) | 8.14 |
| Free cash flow (t + 1) | 6,450.84 |
| Terminal Value | 105,062.54 |
| Present Value of Terminal Value | 71,042.15 |
Intrinsic Value
| Enterprise Value | 85,939.76 |
|---|---|
| Net Debt | 486 |
| Equity Value | 85,453.76 |
| Shares Outstanding | 203 |
| Equity Value Per Share | 420.95 |