ServiceNow Inc., FCFF calculation

US$ in millions

12 months ended:	Dec 31, 2024	Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020
Net income	1,425)	1,731)	325)	230)	119)
Net noncash charges	2,907)	1,768)	2,224)	1,903)	1,387)
Changes in operating assets and liabilities, net of effect of business combinations	(65)	(101)	174)	58)	281)
Net cash provided by operating activities	4,267)	3,398)	2,723)	2,191)	1,787)
Interest paid, net of tax¹	19)	18)	20)	38)	—)
Purchases of property and equipment	(852)	(694)	(550)	(392)	(419)
Purchases of other intangibles	(40)	(3)	—)	—)	—)
Free cash flow to the firm (FCFF)	3,394)	2,719)	2,193)	1,837)	1,367)

Based on: 10-K (reporting date: 2024-12-31), 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31).

¹ See details »

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Item	Description	The company
FCFF	Free cash flow to the firm is the cash flow available to the ServiceNow Inc. suppliers of capital after all operating expenses have been paid and necessary investments in working and fixed capital have been made.	ServiceNow Inc. FCFF increased from 2022 to 2023 and from 2023 to 2024.

ServiceNow Inc., interest paid, net of tax calculation

US$ in millions

12 months ended:	Dec 31, 2024	Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020
Effective Income Tax Rate (EITR)
EITR¹	18.01%	21.00%	18.55%	7.63%	20.57%
Interest Paid, Net of Tax
Interest paid, before tax	23)	23)	24)	41)	—)
Less: Interest paid, tax²	4)	5)	4)	3)	—)
Interest paid, net of tax	19)	18)	20)	38)	—)

Based on: 10-K (reporting date: 2024-12-31), 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31).

¹ See details »

² 2024 Calculation
Interest paid, tax = Interest paid × EITR
= 23 × 18.01% = 4

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ServiceNow Inc., current EV/FCFF calculation, comparison to benchmarks

Selected Financial Data (US$ in millions)
Enterprise value (EV)	199,078)
Free cash flow to the firm (FCFF)	3,394)
Valuation Ratio
EV/FCFF	58.66
Benchmarks
EV/FCFF, Competitors¹
Accenture PLC	27.89
Adobe Inc.	24.62
Cadence Design Systems Inc.	58.57
CrowdStrike Holdings Inc.	114.39
International Business Machines Corp.	20.71
Intuit Inc.	34.37
Microsoft Corp.	48.36
Oracle Corp.	38.80
Palantir Technologies Inc.	225.79
Palo Alto Networks Inc.	43.23
Salesforce Inc.	31.59
Synopsys Inc.	57.14
EV/FCFF, Sector
Software & Services	47.32
EV/FCFF, Industry
Information Technology	55.21

Based on: 10-K (reporting date: 2024-12-31).

¹ Click competitor name to see calculations.

If the company EV/FCFF is lower then the EV/FCFF of benchmark then company is relatively undervalued.
Otherwise, if the company EV/FCFF is higher then the EV/FCFF of benchmark then company is relatively overvalued.

ServiceNow Inc., historical EV/FCFF calculation, comparison to benchmarks

	Dec 31, 2024	Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020
Selected Financial Data (US$ in millions)
Enterprise value (EV)¹	204,354)	153,782)	89,597)	110,442)	114,500)
Free cash flow to the firm (FCFF)²	3,394)	2,719)	2,193)	1,837)	1,367)
Valuation Ratio
EV/FCFF³	60.21	56.55	40.86	60.13	83.74
Benchmarks
EV/FCFF, Competitors⁴
Accenture PLC	25.76	20.26	16.99	24.76	17.90
Adobe Inc.	21.98	37.75	20.82	33.61	40.43
Cadence Design Systems Inc.	—	63.83	44.54	35.05	44.13
CrowdStrike Holdings Inc.	81.46	38.65	96.35	141.44	807.14
International Business Machines Corp.	—	15.27	16.47	13.10	9.35
Intuit Inc.	36.79	31.28	32.85	48.64	37.90
Microsoft Corp.	49.30	41.75	32.31	38.37	33.99
Oracle Corp.	31.24	35.83	31.60	16.36	14.99
Palantir Technologies Inc.	251.61	69.13	82.97	66.45	—
Palo Alto Networks Inc.	34.69	28.15	29.30	32.74	26.50
Salesforce Inc.	29.95	28.41	35.97	44.91	39.63
Synopsys Inc.	56.23	55.87	30.82	38.59	42.88
EV/FCFF, Sector
Software & Services	—	35.79	29.67	32.32	27.87
EV/FCFF, Industry
Information Technology	—	34.40	26.66	27.46	23.88

Based on: 10-K (reporting date: 2024-12-31), 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31).

¹ See details »

² See details »

³ 2024 Calculation
EV/FCFF = EV ÷ FCFF
= 204,354 ÷ 3,394 = 60.21

⁴ Click competitor name to see calculations.

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Valuation ratio	Description	The company
EV/FCFF	Enterprise value to free cash flow to the firm is whole company valuation indicator.	ServiceNow Inc. EV/FCFF ratio increased from 2022 to 2023 and from 2023 to 2024.

ServiceNow Inc. (NYSE:NOW)

Enterprise Value to FCFF (EV/FCFF)

Free Cash Flow to The Firm (FCFF)

Interest Paid, Net of Tax

Enterprise Value to FCFF Ratio, Current

Enterprise Value to FCFF Ratio, Historical