Question 1

What is ServiceNow's P/FCF ratio?

Accepted Answer

ServiceNow (NOW) P/FCF ratio is 21.6× as of July 22, 2026. The ratio is calculated by dividing market capitalisation by trailing twelve-month free cash flow, using USD-normalised financials (IAS 21 exchange-rate translation for non-USD reporters).

Question 2

How is the P/FCF ratio calculated?

Accepted Answer

P/FCF = Market Capitalisation ÷ Trailing Twelve-Month (TTM) Free Cash Flow, where Free Cash Flow = Operating Cash Flow − Capital Expenditures. 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 P/FCF ratio?

Accepted Answer

The price-to-free-cash-flow (P/FCF) ratio compares a company's market capitalisation to its trailing twelve-month (TTM) free cash flow. It is calculated as market cap ÷ TTM free cash flow, where free cash flow = operating cash flow − capital expenditures. Because FCF cannot be inflated by non-cash accounting items, P/FCF is often considered a cleaner measure of "earnings-power valuation" than P/E — especially for capital-intensive businesses where depreciation diverges from real cash outflows.

Question 4

What is a good P/FCF ratio for ServiceNow?

Accepted Answer

Mature companies that consistently convert profit into cash often trade at 15–25× P/FCF; capital-intensive businesses with lumpy capex typically trade lower. Compare against sector peers and against the company's own multi-year average — single-year P/FCF can be distorted by working-capital swings. For ServiceNow specifically, the relevant sector benchmark is the current sector median of 21.8×.

Question 5

Is ServiceNow's P/FCF ratio high or low?

Accepted Answer

ServiceNow's P/FCF ratio of 21.6× is below its own 5-year average of 50.3× and below the sector median of 21.8×. That places the current reading at the 2th 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 P/FCF ratio range?

Accepted Answer

In the available daily series, ServiceNow (NOW) P/FCF ratio has ranged from a low of 19.0× in 2026 to a high of 1953.4× in 2016. The 5-year average is 50.3× and the 5-year median is 49.7×.

Question 7

What was ServiceNow's P/FCF ratio in 2025?

Accepted Answer

ServiceNow (NOW) P/FCF ratio at the end of 2025 was 34.8×. Annual values reflect the multiple on the last trading day of each calendar year, using the trailing twelve-month free cash flow figure available at that date.

Question 8

Why does ServiceNow's P/FCF ratio change over time?

Accepted Answer

Valuation multiples move with two inputs: the numerator (market capitalisation, which tracks the share price) and the denominator (free cash flow). 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	$4.58B	34.8×	-29.7×	Dec 31, 2025
2024	$218B	$3.39B	64.5×	+10.9×	Dec 31, 2024
2023	$145B	$2.7B	53.6×	+17.3×	Dec 31, 2023
2022	$78.8B	$2.17B	36.3×	-35.8×	Dec 31, 2022
2021	$129B	$1.79B	72.1×	-7.4×	Dec 31, 2021
2020	$108B	$1.35B	79.5×	+20.1×	Dec 31, 2020
2019	$53.4B	$898M	59.4×	+2.5×	Dec 31, 2019
2018	$32B	$562M	56.9×	+11.6×	Dec 31, 2018
2017	$22B	$486M	45.3×	-348.3×	Dec 31, 2017
2016	$12.4B	$31.5M	393.6×	+332.4×	Dec 31, 2016
2015	$13.8B	$226M	61.2×	-58.1×	Dec 31, 2015
2014	$10.1B	$84.5M	119.3×	-176.3×	Dec 31, 2014
2013	$7.81B	$26.4M	295.6×	-260.5×	Dec 31, 2013
2012	$3.73B	$6.7M	556.2×	—	Dec 31, 2012
2011	$2.62B	—	—	—	Dec 31, 2011


Zebra Technologies (ZBRA)	12.2×
Skyworks Solutions (SWKS)	11.9×
Cognizant (CTSH)	11.8×
NetApp (NTAP)	11.5×
Duolingo (DUOL)	11.1×
Block (XYZ)	11.0×
QUALCOMM (QCOM)	10.8×
Leidos Holdings (LDOS)	10.8×
Workday (WDAY)	10.5×
Salesforce (CRM)	10.5×
Qorvo (QRVO)	10.4×
Adobe (ADBE)	9.8×
Accenture (ACN)	9.6×
Strategy (MSTR)	9.2×
Gartner (IT)	8.8×
Fidelity National Information Services (FIS)	8.7×
DocuSign (DOCU)	8.0×
Gen Digital (GEN)	7.5×
Fiserv (FISV)	7.2×
Science Applications International (SAIC)	7.0×
Hewlett Packard Enterprise (HPE)	6.8×
GoDaddy (GDDY)	6.7×
HP (HPQ)	5.1×
Lyft (LYFT)	4.5×
IBM (IBM)	0.0×

P/FCF Ratio for ServiceNow (NOW) 2012-2026

P/FCF Ratio daily chart for ServiceNow (NOW)

Historical P/FCF Ratio for ServiceNow (NOW) from 2011 to 2025

About P/FCF Ratio at ServiceNow (NOW)

ServiceNow P/FCF Ratio by Year

ServiceNow P/FCF Ratio 2025: 34.8×

ServiceNow P/FCF Ratio 2024: 64.5×

ServiceNow P/FCF Ratio 2023: 53.6×

ServiceNow P/FCF Ratio 2022: 36.3×

ServiceNow P/FCF Ratio 2021: 72.1×

Sector peers by P/FCF Ratio — chart

Sector peers by P/FCF Ratio — table

Frequently asked questions

ServiceNow (NOW) Key Financials