Discounted Cash Flow (DCF) Analysis Levered

ServiceNow, Inc. (NOW)

$548.18

+5.22 (+0.96%)
All numbers are in Millions, Currency in USD
Stock DCF: 453.36 | 548.18 | overvalue

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 2,608.823,460.444,519.485,8967,2459,356.6612,083.7915,605.7820,154.3126,028.57
Revenue (%)
Operating Cash Flow 811.091,235.971,786.602,1912,7233,388.684,376.365,651.917,299.249,426.71
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 562.23898.391,354.081,7922,1732,579.833,331.754,302.845,556.967,176.62

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 2,608.823,460.444,519.485,8967,2459,356.6612,083.7915,605.7820,154.3126,028.57
Operating Cash Flow 811.091,235.971,786.602,1912,7233,388.684,376.365,651.917,299.249,426.71
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 562.23898.391,354.081,7922,1732,579.833,331.754,302.845,556.967,176.62
WACC
PV LFCF 2,378.822,832.783,373.394,017.164,783.79
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