Discounted Cash Flow (DCF) Analysis Levered
ServiceNow, Inc. (NOW)
$548.18
+5.22 (+0.96%)
All numbers are in Millions, Currency in USD
Free Cash Flow
Year A/P | 2018 Actual | 2019 Actual | 2020 Actual | 2021 Actual | 2022 Actual | 2023 Projected | 2024 Projected | 2025 Projected | 2026 Projected | 2027 Projected |
| Revenue | 2,608.82 | 3,460.44 | 4,519.48 | 5,896 | 7,245 | 9,356.66 | 12,083.79 | 15,605.78 | 20,154.31 | 26,028.57 |
|---|---|---|---|---|---|---|---|---|---|---|
| Revenue (%) | ||||||||||
| Operating Cash Flow | 811.09 | 1,235.97 | 1,786.60 | 2,191 | 2,723 | 3,388.68 | 4,376.36 | 5,651.91 | 7,299.24 | 9,426.71 |
| Operating Cash Flow (%) | ||||||||||
| Capital Expenditure | -248.86 | -337.58 | -432.52 | -399 | -550 | -808.86 | -1,044.61 | -1,349.07 | -1,742.28 | -2,250.09 |
| Capital Expenditure (%) | ||||||||||
| Free Cash Flow | 562.23 | 898.39 | 1,354.08 | 1,792 | 2,173 | 2,579.83 | 3,331.75 | 4,302.84 | 5,556.96 | 7,176.62 |
Weighted Average Cost Of Capital
| Share price | $ 548.18 |
|---|---|
| Beta | 1.040 |
| Diluted Shares Outstanding | 203.53 |
| Cost of Debt | |
| Tax Rate | 18.55 |
| After-tax Cost of Debt | 0.99% |
| Risk-Free Rate | |
| Market Risk Premium | |
| Cost of Equity | 8.600 |
| Total Debt | 2,232 |
| Total Equity | 111,573.82 |
| Total Capital | 113,805.82 |
| Debt Weighting | 1.96 |
| Equity Weighting | 98.04 |
| Wacc |
Build Up Free Cash Flow
Year A/P | 2018 Actual | 2019 Actual | 2020 Actual | 2021 Actual | 2022 Actual | 2023 Projected | 2024 Projected | 2025 Projected | 2026 Projected | 2027 Projected |
| Revenue | 2,608.82 | 3,460.44 | 4,519.48 | 5,896 | 7,245 | 9,356.66 | 12,083.79 | 15,605.78 | 20,154.31 | 26,028.57 |
|---|---|---|---|---|---|---|---|---|---|---|
| Operating Cash Flow | 811.09 | 1,235.97 | 1,786.60 | 2,191 | 2,723 | 3,388.68 | 4,376.36 | 5,651.91 | 7,299.24 | 9,426.71 |
| Capital Expenditure | -248.86 | -337.58 | -432.52 | -399 | -550 | -808.86 | -1,044.61 | -1,349.07 | -1,742.28 | -2,250.09 |
| Free Cash Flow | 562.23 | 898.39 | 1,354.08 | 1,792 | 2,173 | 2,579.83 | 3,331.75 | 4,302.84 | 5,556.96 | 7,176.62 |
| WACC | ||||||||||
| PV LFCF | 2,378.82 | 2,832.78 | 3,373.39 | 4,017.16 | 4,783.79 | |||||
| SUM PV LFCF | 17,385.94 |
Terminal Value
| Growth in perpetuity method: | |
|---|---|
| Long-term growth rate | |
| WACC (%) | 8.45 |
| Free cash flow (t + 1) | 7,320.15 |
| Terminal Value | 113,490.69 |
| Present Value of Terminal Value | 75,650.61 |
Intrinsic Value
| Enterprise Value | 93,036.55 |
|---|---|
| Net Debt | 762 |
| Equity Value | 92,274.55 |
| Shares Outstanding | 203.53 |
| Equity Value Per Share | 453.36 |