ServiceNow Inc (NOW) receives a poor valuation ranking of 4 from InvestorsObserver data analysis. The proprietary ranking system focuses on a company’s underlying health by analyzing its stock price, earnings, and growth rate. NOW has better value than 4% of the stocks based on this review analysis. Investors who are primarily focused on buy-and-hold strategies will find the valuation ranking relevant to their goals when making investment decisions.
Metric Analysis
NOW’s trailing 12-month Price to Earnings (PE) ratio of 393.7 puts it above the historical average of approximately 15. NOW is a weak value at its current trading price because investors are paying of more than its value in relation to the profits of the company. NOW’s trailing-12-month earnings per share (EPS) of 1.10 does not justify what it currently trades in the market. The following PE ratios, however, do not take into account a company’s expected growth rate, resulting in some companies with high PE ratios due to the high growth potential that attracts investors. even if current revenues are low. NOW currently has a 12-month-forward-PE-to-Growth (PEG) ratio of 8.07. The market currently highly values NOW in relation to its expected growth due to the PEG ratio being above the fair market value of 1. NOW’s PEG comes from its forward price to revenue ratio divided by the growth rate. its. Because PEG ratios include more of a company’s overall health fundamentals with more focus on the future, they are one of the most used metrics in analysts ’appreciation.
Summary
NOW’s valuation metrics are weak at its current price due to the oversized PEG ratio despite strong growth. NOW’s PE and PEG are worse than the market average resulting in a below average analysis score. Click Here to get the full ServiceNow Inc stock Report (NOW).
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