Discounted Cash Flow (DCF) Analysis Unlevered

ServiceNow, Inc. (NOW)

$559.48

+5.39 (+0.97%)

All numbers are in Millions, Currency in USD

Stock DCF: 14.97 | 559.48 | overvalue

Operating Data

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 (%)
EBITDA	163.31	352.58	518.31	749	859	982.03	1,268.25	1,637.90	2,115.29	2,731.82
EBITDA (%)
EBIT	13.71	100.47	181.93	277	426	337.44	435.80	562.82	726.86	938.71
EBIT (%)
Depreciation	149.60	252.11	336.38	472	433	644.58	832.45	1,075.08	1,388.43	1,793.11
Depreciation (%)

Balance Sheet Data

Year A/P	2018 Actual	2019 Actual	2020 Actual	2021 Actual	2022 Actual	2023 Projected	2024 Projected	2025 Projected	2026 Projected	2027 Projected
Total Cash	1,497.92	1,691.10	3,092.04	3,304	4,280	5,423.42	7,004.15	9,045.61	11,682.08	15,086.99
Total Cash (%)
Account Receivables	574.81	835.28	1,009.41	1,390	1,725	2,168.70	2,800.80	3,617.14	4,671.40	6,032.95
Account Receivables (%)
Inventories	139.89	175.04	228.92	303	369	481.27	621.54	802.70	1,036.66	1,338.81
Inventories (%)
Accounts Payable	30.73	52.96	34.24	89	274	163.88	211.65	273.33	353	455.89
Accounts Payable (%)
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 (%)

Weighted Average Cost Of Capital

Share price	$ 559.48
Beta	1.007
Diluted Shares Outstanding	204
Cost of Debt
Tax Rate	18.55
After-tax Cost of Debt	0.99%
Risk-Free Rate
Market Risk Premium
Cost of Equity	9.295
Total Debt	2,232
Total Equity	114,133.92
Total Capital	116,365.92
Debt Weighting	1.92
Equity Weighting	98.08
Wacc

Build Up Free Cash

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
EBITDA	163.31	352.58	518.31	749	859	982.03	1,268.25	1,637.90	2,115.29	2,731.82
EBIT	13.71	100.47	181.93	277	426	337.44	435.80	562.82	726.86	938.71
Tax Rate	31.57%	-832.79%	20.57%	7.63%	18.55%	-150.90%	-150.90%	-150.90%	-150.90%	-150.90%
EBIAT	9.38	937.16	144.51	255.86	346.99	846.64	1,093.40	1,412.09	1,823.66	2,355.19
Depreciation	149.60	252.11	336.38	472	433	644.58	832.45	1,075.08	1,388.43	1,793.11
Accounts Receivable	-	-260.47	-174.14	-380.58	-335	-443.70	-632.10	-816.33	-1,054.27	-1,361.55
Inventories	-	-35.15	-53.89	-74.08	-66	-112.27	-140.27	-181.16	-233.96	-302.15
Accounts Payable	-	22.23	-18.72	54.76	185	-110.12	47.77	61.69	79.67	102.89
Capital Expenditure	-248.86	-337.58	-432.52	-399	-550	-808.86	-1,044.61	-1,349.07	-1,742.28	-2,250.09
UFCF	-89.88	578.30	-198.37	-71.03	13.99	16.27	156.64	202.29	261.25	337.40
WACC
PV UFCF						14.91	131.50	155.61	184.13	217.88
SUM PV UFCF										704.03

Terminal Value

Growth in perpetuity method:
Long-term growth rate
WACC (%)	9.14
Free cash flow (t + 1)	344.15
Terminal Value	4,819.99
Present Value of Terminal Value	3,112.62

Intrinsic Value

Enterprise Value	3,816.65
Net Debt	762
Equity Value	3,054.65
Shares Outstanding	204
Equity Value Per Share	14.97