Question 1

What is ServiceNow's EV/EBITDA ratio?

Accepted Answer

ServiceNow (NOW) EV/EBITDA ratio is 35.4× as of July 22, 2026. The ratio is calculated by dividing enterprise value by trailing twelve-month EBITDA, using USD-normalised financials (IAS 21 exchange-rate translation for non-USD reporters).

Question 2

How is the EV/EBITDA ratio calculated?

Accepted Answer

EV/EBITDA = Enterprise Value ÷ Trailing Twelve-Month (TTM) EBITDA, where Enterprise Value = Market Capitalisation + Total Debt − Cash & Short-Term Investments. All inputs are sourced from audited GAAP/IFRS filings and translated to USD using period-end exchange rates so the multiple is comparable across companies and currencies.

Question 3

What is the EV/EBITDA ratio?

Accepted Answer

The EV/EBITDA ratio (the enterprise multiple) compares enterprise value (EV) to trailing twelve-month (TTM) EBITDA. EV is calculated as market capitalisation + total debt − cash & short-term investments. Because EV/EBITDA is capital-structure-neutral and ignores non-cash depreciation and amortisation, it is the standard multiple used in M&A and for cross-company or cross-border comparisons. Note: this calculation uses a simplified EV (minority interest and preferred equity excluded due to data availability), consistent with most public financial-data providers.

Question 4

What is a good EV/EBITDA ratio for ServiceNow?

Accepted Answer

Mature, cash-generative businesses commonly trade in the 8–12× EV/EBITDA range; higher-growth, asset-light companies often trade at 15–25×+. EV/EBITDA is most useful for comparing companies with different capital structures (debt levels) or tax regimes. For ServiceNow specifically, the relevant sector benchmark is the current sector median of 20.3×.

Question 5

Is ServiceNow's EV/EBITDA ratio high or low?

Accepted Answer

ServiceNow's EV/EBITDA ratio of 35.4× is below its own 5-year average of 102.3× and above the sector median of 20.3×. That places the current reading at the 7th percentile of its 10-year history. A higher multiple usually reflects stronger expected growth, lower perceived risk, or higher returns on capital; a lower multiple reflects the opposite.

Question 6

What is ServiceNow's historical EV/EBITDA ratio range?

Accepted Answer

In the available daily series, ServiceNow (NOW) EV/EBITDA ratio has ranged from a low of 26.5× in 2026 to a high of 1059.2× in 2017. The 5-year average is 102.3× and the 5-year median is 93.4×.

Question 7

What was ServiceNow's EV/EBITDA ratio in 2025?

Accepted Answer

ServiceNow (NOW) EV/EBITDA ratio at the end of 2025 was 51.7×. Annual values reflect the multiple on the last trading day of each calendar year, using the trailing twelve-month EBITDA figure available at that date.

Question 8

Why does ServiceNow's EV/EBITDA ratio change over time?

Accepted Answer

Valuation multiples move with two inputs: the numerator (enterprise value, which tracks share price plus net debt) and the denominator (EBITDA). Share-price changes — driven by interest rates, earnings expectations, risk appetite, and broader market sentiment — typically dominate short-term moves, while changes in the underlying fundamental drive the longer-term trend. As a result, the ratio can rise during stock-price rallies even if the business itself has not become more valuable, and fall during sell-offs even when fundamentals are improving.


2025	$159B	$3.02B	51.7×	-41.6×	Dec 31, 2025
2024	$218B	$2.3B	93.4×	-0.6×	Dec 31, 2024
2023	$145B	$1.51B	93.9×	-5.9×	Dec 31, 2023
2022	$78.8B	$769M	99.8×	-87.4×	Dec 31, 2022
2021	$129B	$684M	187.3×	-8.0×	Dec 31, 2021
2020	$108B	$546M	195.3×	+45.2×	Dec 31, 2020
2019	$53.4B	$352M	150.1×	-54.0×	Dec 31, 2019
2018	$32B	$153M	204.1×	-855.1×	Dec 31, 2018
2017	$22B	$20.2M	1059.2×	—	Dec 31, 2017
2016	$12.4B	-$354M	—	—	Dec 31, 2016
2015	$13.8B	-$106M	—	—	Dec 31, 2015
2014	$10.1B	-$110M	—	—	Dec 31, 2014
2013	$7.81B	-$42.8M	—	—	Dec 31, 2013
2012	$3.73B	-$24.1M	—	—	Dec 31, 2012
2011	$2.62B	$6.54M	390.6×	—	Dec 31, 2011


Super Micro Computer (SMCI)	10.8×
Adobe (ADBE)	10.6×
Dell Technologies (DELL)	10.6×
NetApp (NTAP)	10.5×
PTC (PTC)	10.2×
Qorvo (QRVO)	10.2×
GoDaddy (GDDY)	10.1×
Gartner (IT)	10.1×
QUALCOMM (QCOM)	9.9×
Ondas Holdings (ONDS)	9.9×
EPAM Systems (EPAM)	9.6×
Accenture (ACN)	9.4×
Science Applications International (SAIC)	9.2×
Skyworks Solutions (SWKS)	9.2×
Amkor Technology (AMKR)	8.7×
Gen Digital (GEN)	8.3×
First Solar (FSLR)	8.3×
Corpay (CPAY)	8.3×
Paycom Software (PAYC)	8.1×
Zoom Communications (ZM)	7.5×
Fiserv (FISV)	7.4×
Cognizant (CTSH)	7.1×
HP (HPQ)	6.4×
Fidelity National Information Services (FIS)	4.8×
IBM (IBM)	3.8×

EV/EBITDA for ServiceNow (NOW) 2011-2026

EV/EBITDA daily chart for ServiceNow (NOW)

Historical EV/EBITDA for ServiceNow (NOW) from 2011 to 2025

About EV/EBITDA at ServiceNow (NOW)

ServiceNow EV/EBITDA by Year

ServiceNow EV/EBITDA 2025: 51.7×

ServiceNow EV/EBITDA 2024: 93.4×

ServiceNow EV/EBITDA 2023: 93.9×

ServiceNow EV/EBITDA 2022: 99.8×

ServiceNow EV/EBITDA 2021: 187.3×

Sector peers by EV/EBITDA — chart

Sector peers by EV/EBITDA — table

Frequently asked questions

ServiceNow (NOW) Key Financials