Question 1

What is ServiceNow's P/B ratio?

Accepted Answer

ServiceNow (NOW) P/B ratio is 5.3× as of July 22, 2026. The ratio is calculated by dividing market capitalisation by book value of equity, using USD-normalised financials (IAS 21 exchange-rate translation for non-USD reporters).

Question 2

How is the P/B ratio calculated?

Accepted Answer

P/B = Market Capitalisation ÷ Book Value of Equity (most recent quarterly shareholders' equity), or equivalently Share Price ÷ Book Value Per Share. 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/B ratio?

Accepted Answer

The price-to-book (P/B) ratio compares a company's market capitalisation to its book value of equity (total shareholders' equity) on the most recent quarterly balance sheet. It is calculated as market cap ÷ book value of equity (equivalent to share price ÷ book value per share). A P/B below 1× implies the market values the business below its accounting net worth; values well above 1× reflect intangible assets, brand value, or a high return on equity.

Question 4

What is a good P/B ratio for ServiceNow?

Accepted Answer

A "good" P/B depends on the business model. Banks, insurers, and other capital-heavy financials typically trade near 1×; asset-light technology and consumer-brand companies can sustainably trade at 5×+ because much of their value is intangible. P/B is most informative when paired with return on equity (ROE). For ServiceNow specifically, the relevant sector benchmark is the current sector median of 5.6×.

Question 5

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

Accepted Answer

ServiceNow's P/B ratio of 5.3× is below its own 5-year average of 19.8× and below the sector median of 5.6×. That places the current reading at the 0th 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/B ratio range?

Accepted Answer

In the available daily series, ServiceNow (NOW) P/B ratio has ranged from a low of 5.3× in 2026 to a high of 42.5× in 2021. The 5-year average is 19.8× and the 5-year median is 18.7×.

Question 7

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

Accepted Answer

ServiceNow (NOW) P/B ratio at the end of 2025 was 12.3×. Annual values reflect the multiple on the last trading day of each calendar year, using the trailing twelve-month book value figure available at that date.

Question 8

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

Accepted Answer

Valuation multiples move with two inputs: the numerator (market capitalisation, which tracks the share price) and the denominator (book value). 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	$13B	12.3×	-10.4×	Dec 31, 2025
2024	$218B	$9.61B	22.7×	+3.7×	Dec 31, 2024
2023	$145B	$7.63B	19.0×	+3.3×	Dec 31, 2023
2022	$78.8B	$5.03B	15.7×	-19.3×	Dec 31, 2022
2021	$129B	$3.7B	35.0×	-3.0×	Dec 31, 2021
2020	$108B	$2.83B	38.0×	+12.9×	Dec 31, 2020
2019	$53.4B	$2.13B	25.1×	-3.7×	Dec 31, 2019
2018	$32B	$1.11B	28.8×	+0.6×	Dec 31, 2018
2017	$22B	$779M	28.2×	-3.8×	Dec 31, 2017
2016	$12.4B	$387M	32.1×	+7.7×	Dec 31, 2016
2015	$13.8B	$567M	24.4×	+0.9×	Dec 31, 2015
2014	$10.1B	$429M	23.5×	+3.7×	Dec 31, 2014
2013	$7.81B	$394M	19.8×	+4.5×	Dec 31, 2013
2012	$3.73B	$243M	15.3×	—	Dec 31, 2012
2011	$2.62B	-$57.4M	—	—	Dec 31, 2011


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

P/B Ratio daily chart for ServiceNow (NOW)

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

About P/B Ratio at ServiceNow (NOW)

ServiceNow P/B Ratio by Year

ServiceNow P/B Ratio 2025: 12.3×

ServiceNow P/B Ratio 2024: 22.7×

ServiceNow P/B Ratio 2023: 19.0×

ServiceNow P/B Ratio 2022: 15.7×

ServiceNow P/B Ratio 2021: 35.0×

Sector peers by P/B Ratio — chart

Sector peers by P/B Ratio — table

Frequently asked questions

ServiceNow (NOW) Key Financials