Price to FCFE (P/FCFE)

Free Cash Flow to Equity (FCFE)
P to FCFE Ratio, Current
P to FCFE Ratio, Historical

Free Cash Flow to Equity (FCFE)

ServiceNow Inc., FCFE calculation

US$ in millions

12 months ended:	Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
Net income	1,731)	325)	230)	119)	627)
Net noncash charges	1,768)	2,224)	1,903)	1,387)	531)
Changes in operating assets and liabilities, net of effect of business combinations	(101)	174)	58)	281)	78)
Net cash provided by operating activities	3,398)	2,723)	2,191)	1,787)	1,236)
Purchases of property and equipment	(694)	(550)	(392)	(419)	(265)
Net proceeds from borrowings on 2030 Notes	—)	—)	—)	1,482)	—)
Repayments of convertible senior notes attributable to principal	—)	(94)	(61)	(1,628)	—)
Net proceeds from unwind of 2022 Note Hedge	—)	—)	—)	1,106)	—)
Free cash flow to equity (FCFE)	2,704)	2,079)	1,738)	2,327)	971)

Based on: 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), 10-K (reporting date: 2019-12-31).

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Item	Description	The company
FCFE	Free cash flow to equity is the cash flow available to ServiceNow Inc. equity holders after all operating expenses, interest, and principal payments have been paid and necessary investments in working and fixed capital have been made.	ServiceNow Inc. FCFE increased from 2021 to 2022 and from 2022 to 2023.

Price to FCFE Ratio, Current

ServiceNow Inc., current P/FCFE calculation, comparison to benchmarks

No. shares of common stock outstanding	206,000,000
Selected Financial Data (US$)
Free cash flow to equity (FCFE) (in millions)	2,704)
FCFE per share	13.13
Current share price (P)	1,022.10
Valuation Ratio
P/FCFE	77.87
Benchmarks
P/FCFE, Competitors¹
Accenture PLC	23.43
Adobe Inc.	34.14
Autodesk Inc.	52.41
Cadence Design Systems Inc.	71.67
CrowdStrike Holdings Inc.	93.21
International Business Machines Corp.	11.48
Intuit Inc.	39.73
Microsoft Corp.	41.61
Oracle Corp.	64.30
Palo Alto Networks Inc.	61.13
Salesforce Inc.	40.22
Synopsys Inc.	54.29
P/FCFE, Sector
Software & Services	41.88
P/FCFE, Industry
Information Technology	51.78

Based on: 10-K (reporting date: 2023-12-31).

¹ Click competitor name to see calculations.

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

Price to FCFE Ratio, Historical

ServiceNow Inc., historical P/FCFE calculation, comparison to benchmarks

	Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
No. shares of common stock outstanding¹	205,000,000	203,000,000	200,000,000	196,100,000	189,800,000
Selected Financial Data (US$)
Free cash flow to equity (FCFE) (in millions)²	2,704)	2,079)	1,738)	2,327)	971)
FCFE per share³	13.19	10.24	8.69	11.87	5.12
Share price^1, 4	766.69	455.13	560.85	591.29	352.94
Valuation Ratio
P/FCFE⁵	58.13	44.44	64.54	49.83	68.98
Benchmarks
P/FCFE, Competitors⁶
Accenture PLC	21.03	17.91	25.76	19.01	19.50
Adobe Inc.	41.83	21.32	34.26	41.36	41.90
Autodesk Inc.	25.55	16.66	64.43	24.07	41.92
Cadence Design Systems Inc.	71.40	33.41	36.31	45.86	36.04
CrowdStrike Holdings Inc.	42.65	99.63	41.38	880.68	—
International Business Machines Corp.	9.97	11.97	48.45	9.43	4.39
Intuit Inc.	38.74	13.86	86.74	17.36	34.61
Microsoft Corp.	43.32	36.73	42.54	42.74	30.77
Oracle Corp.	15.47	—	8.36	6.27	22.31
Palo Alto Networks Inc.	79.75	29.54	32.91	8.11	46.20
Salesforce Inc.	31.06	16.56	49.52	50.40	29.09
Synopsys Inc.	57.04	33.41	40.55	45.07	77.64
P/FCFE, Sector
Software & Services	32.73	30.44	33.85	25.89	22.16
P/FCFE, Industry
Information Technology	33.47	26.69	27.52	23.46	19.14

Based on: 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), 10-K (reporting date: 2019-12-31).

¹ Data adjusted for splits and stock dividends.

² See details »

³ 2023 Calculation
FCFE per share = FCFE ÷ No. shares of common stock outstanding
= 2,704,000,000 ÷ 205,000,000 = 13.19

⁴ Closing price as at the filing date of ServiceNow Inc. Annual Report.

⁵ 2023 Calculation
P/FCFE = Share price ÷ FCFE per share
= 766.69 ÷ 13.19 = 58.13

⁶ Click competitor name to see calculations.

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Valuation ratio	Description	The company
P/FCFE	Price to free cash flow to equity is cash valuation indicator of stockholders’ equity.	ServiceNow Inc. P/FCFE ratio decreased from 2021 to 2022 but then increased from 2022 to 2023 not reaching 2021 level.

ServiceNow Inc. (NYSE:NOW)

Price to FCFE (P/FCFE)

Free Cash Flow to Equity (FCFE)

Price to FCFE Ratio, Current

Price to FCFE Ratio, Historical