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 2,608.823,460.444,519.485,8967,2459,356.6612,083.7915,605.7820,154.3126,028.57
Revenue (%)
EBITDA 163.31352.58518.31749859982.031,268.251,637.902,115.292,731.82
EBITDA (%)
EBIT 13.71100.47181.93277426337.44435.80562.82726.86938.71
EBIT (%)
Depreciation 149.60252.11336.38472433644.58832.451,075.081,388.431,793.11
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 1,497.921,691.103,092.043,3044,2805,423.427,004.159,045.6111,682.0815,086.99
Total Cash (%)
Account Receivables 574.81835.281,009.411,3901,7252,168.702,800.803,617.144,671.406,032.95
Account Receivables (%)
Inventories 139.89175.04228.92303369481.27621.54802.701,036.661,338.81
Inventories (%)
Accounts Payable 30.7352.9634.2489274163.88211.65273.33353455.89
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 2,608.823,460.444,519.485,8967,2459,356.6612,083.7915,605.7820,154.3126,028.57
EBITDA 163.31352.58518.31749859982.031,268.251,637.902,115.292,731.82
EBIT 13.71100.47181.93277426337.44435.80562.82726.86938.71
Tax Rate 31.57%-832.79%20.57%7.63%18.55%-150.90%-150.90%-150.90%-150.90%-150.90%
EBIAT 9.38937.16144.51255.86346.99846.641,093.401,412.091,823.662,355.19
Depreciation 149.60252.11336.38472433644.58832.451,075.081,388.431,793.11
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 -22.23-18.7254.76185-110.1247.7761.6979.67102.89
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 -89.88578.30-198.37-71.0313.9916.27156.64202.29261.25337.40
WACC
PV UFCF 14.91131.50155.61184.13217.88
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