Discounted Cash Flow (DCF) Analysis Levered

ServiceNow, Inc. (NOW)

$504.09

+18.56 (+3.82%)
All numbers are in Millions, Currency in USD
Stock DCF: 420.95 | 504.09 | overvalue

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 1,933.032,608.823,460.444,519.485,8967,792.5410,299.1213,611.9917,990.4923,777.40
Revenue (%)
Operating Cash Flow 642.82811.091,235.971,786.602,1912,754.733,640.834,811.956,359.798,405.51
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 485.64562.23898.391,354.081,7922,072.672,739.383,620.544,785.146,324.35

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 1,933.032,608.823,460.444,519.485,8967,792.5410,299.1213,611.9917,990.4923,777.40
Operating Cash Flow 642.82811.091,235.971,786.602,1912,754.733,640.834,811.956,359.798,405.51
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 485.64562.23898.391,354.081,7922,072.672,739.383,620.544,785.146,324.35
WACC
PV LFCF 1,916.662,342.502,862.953,499.044,276.46
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