Discounted Cash Flow (DCF) Analysis Levered

ServiceNow, Inc. (NOW)

$452.29

+32.64 (+7.78%)
All numbers are in Millions, Currency in USD
Stock DCF: 475.89 | 452.29 | undervalue

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 $ 452.29
Beta 1.036
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 7.640
Total Debt 2,214
Total Equity 91,814.87
Total Capital 94,028.87
Debt Weighting 2.35
Equity Weighting 97.65
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 1,928.252,370.912,915.213,584.454,407.33
SUM PV LFCF 15,206.15

Terminal Value

Growth in perpetuity method:
Long-term growth rate
WACC (%) 7.49
Free cash flow (t + 1) 6,450.84
Terminal Value 117,501.64
Present Value of Terminal Value 81,884.86

Intrinsic Value

Enterprise Value 97,091.01
Net Debt 486
Equity Value 96,605.01
Shares Outstanding 203
Equity Value Per Share 475.89