Discounted Cash Flow (DCF) Analysis Unlevered
ServiceNow, Inc. (NOW)
$484.36
+8.84 (+1.86%)
All numbers are in Millions, Currency in USD
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 | 1,933.03 | 2,608.82 | 3,460.44 | 4,519.48 | 5,896 | 7,792.54 | 10,299.12 | 13,611.99 | 17,990.49 | 23,777.40 |
|---|---|---|---|---|---|---|---|---|---|---|
| Revenue (%) | ||||||||||
| EBITDA | 15.49 | 160.65 | 350.98 | 518.31 | 749 | 643.26 | 850.17 | 1,123.64 | 1,485.08 | 1,962.78 |
| EBITDA (%) | ||||||||||
| EBIT | -98.38 | 11.05 | 98.86 | 181.93 | 277 | 107.76 | 142.43 | 188.24 | 248.79 | 328.82 |
| EBIT (%) | ||||||||||
| Depreciation | 113.88 | 149.60 | 252.11 | 336.38 | 472 | 535.50 | 707.75 | 935.40 | 1,236.29 | 1,633.96 |
| 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 | 1,779.30 | 1,497.92 | 1,691.10 | 3,092.04 | 3,304 | 5,030.68 | 6,648.87 | 8,787.58 | 11,614.23 | 15,350.12 |
|---|---|---|---|---|---|---|---|---|---|---|
| Total Cash (%) | ||||||||||
| Account Receivables | 434.89 | 574.81 | 835.28 | 1,009.42 | 1,390 | 1,785.73 | 2,360.14 | 3,119.31 | 4,122.68 | 5,448.81 |
| Account Receivables (%) | ||||||||||
| Inventories | - | - | - | - | - | - | - | - | - | - |
| Inventories (%) | ||||||||||
| Accounts Payable | 32.11 | 30.73 | 52.96 | 34.24 | 89 | 103.43 | 136.70 | 180.67 | 238.79 | 315.60 |
| 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 | 1,933.03 | 2,608.82 | 3,460.44 | 4,519.48 | 5,896 | 7,792.54 | 10,299.12 | 13,611.99 | 17,990.49 | 23,777.40 |
|---|---|---|---|---|---|---|---|---|---|---|
| EBITDA | 15.49 | 160.65 | 350.98 | 518.31 | 749 | 643.26 | 850.17 | 1,123.64 | 1,485.08 | 1,962.78 |
| EBIT | -98.38 | 11.05 | 98.86 | 181.93 | 277 | 107.76 | 142.43 | 188.24 | 248.79 | 328.82 |
| Tax Rate | -0.08% | 31.57% | -832.79% | 20.57% | 7.63% | -154.62% | -154.62% | -154.62% | -154.62% | -154.62% |
| EBIAT | -98.46 | 7.56 | 922.18 | 144.51 | 255.86 | 274.39 | 362.65 | 479.30 | 633.47 | 837.24 |
| Depreciation | 113.88 | 149.60 | 252.11 | 336.38 | 472 | 535.50 | 707.75 | 935.40 | 1,236.29 | 1,633.96 |
| 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 | - | -1.38 | 22.23 | -18.72 | 54.76 | 14.43 | 33.27 | 43.97 | 58.12 | 76.81 |
| 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 | -232.99 | 598.47 | -144.48 | 3.04 | -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 |