Discounted Cash Flow (DCF) Analysis Unlevered

ServiceNow, Inc. (NOW)

$484.36

+8.84 (+1.86%)
All numbers are in Millions, Currency in USD
Stock DCF: -62.35 | 484.36 | overvalue

Operating Data

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 (%)
EBITDA 15.49160.65350.98518.31749643.26850.171,123.641,485.081,962.78
EBITDA (%)
EBIT -98.3811.0598.86181.93277107.76142.43188.24248.79328.82
EBIT (%)
Depreciation 113.88149.60252.11336.38472535.50707.75935.401,236.291,633.96
Depreciation (%)

Balance Sheet Data

Year
A/P
2017
Actual
2018
Actual
2019
Actual
2020
Actual
2021
Actual
2022
Projected
2023
Projected
2024
Projected
2025
Projected
2026
Projected
Total Cash 1,779.301,497.921,691.103,092.043,3045,030.686,648.878,787.5811,614.2315,350.12
Total Cash (%)
Account Receivables 434.89574.81835.281,009.421,3901,785.732,360.143,119.314,122.685,448.81
Account Receivables (%)
Inventories ----------
Inventories (%)
Accounts Payable 32.1130.7352.9634.2489103.43136.70180.67238.79315.60
Accounts Payable (%)
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 (%)

Weighted Average Cost Of Capital

Share price $ 484.36
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 8.050
Total Debt 2,214
Total Equity 98,325.08
Total Capital 100,539.08
Debt Weighting 2.20
Equity Weighting 97.80
Wacc

Build Up Free Cash

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
EBITDA 15.49160.65350.98518.31749643.26850.171,123.641,485.081,962.78
EBIT -98.3811.0598.86181.93277107.76142.43188.24248.79328.82
Tax Rate -0.08%31.57%-832.79%20.57%7.63%-154.62%-154.62%-154.62%-154.62%-154.62%
EBIAT -98.467.56922.18144.51255.86274.39362.65479.30633.47837.24
Depreciation 113.88149.60252.11336.38472535.50707.75935.401,236.291,633.96
Accounts Receivable --139.92-260.47-174.14-380.58-395.73-574.41-759.17-1,003.37-1,326.12
Inventories ----------
Accounts Payable --1.3822.23-18.7254.7614.4333.2743.9758.1276.81
Capital Expenditure -157.18-248.86-337.58-432.52-399-682.06-901.45-1,191.41-1,574.65-2,081.16
UFCF -141.77-232.99598.47-144.483.04-253.47-372.19-491.91-650.14-859.27
WACC
PV UFCF -234.91-319.69-391.58-479.65-587.52
SUM PV UFCF -2,013.35

Terminal Value

Growth in perpetuity method:
Long-term growth rate
WACC (%) 7.90
Free cash flow (t + 1) -876.46
Terminal Value -14,855.18
Present Value of Terminal Value -10,157.12

Intrinsic Value

Enterprise Value -12,170.47
Net Debt 486
Equity Value -12,656.47
Shares Outstanding 203
Equity Value Per Share -62.35