Question 1

What is ServiceNow's P/E ratio?

Accepted Answer

ServiceNow (NOW) P/E ratio is 59.3× as of July 22, 2026. The ratio is calculated by dividing market capitalisation by trailing twelve-month earnings (net income), using USD-normalised financials (IAS 21 exchange-rate translation for non-USD reporters).

Question 2

How is the P/E ratio calculated?

Accepted Answer

P/E = Share Price ÷ Trailing Twelve-Month (TTM) Diluted EPS, or equivalently Market Capitalisation ÷ TTM Net Income. 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/E ratio?

Accepted Answer

The price-to-earnings (P/E) ratio, also called the earnings multiple, measures how much investors pay per dollar of a company's trailing twelve-month (TTM) earnings. It is calculated as share price ÷ TTM diluted EPS (equivalent to market capitalisation ÷ TTM net income). A higher P/E implies the market is pricing in stronger future earnings growth or lower risk; a lower P/E can signal slower expected growth, higher risk, or potential undervaluation.

Question 4

What is a good P/E ratio for ServiceNow?

Accepted Answer

There is no universal "good" P/E. As a rule of thumb, the S&P 500 has historically averaged a P/E in the mid-to-high teens; mature, slow-growth businesses commonly trade in the 10–18× range, while high-growth or asset-light companies often trade at 25–50×+. What matters is the comparison to sector peers and to the company's own historical range. For ServiceNow specifically, the relevant sector benchmark is the current sector median of 29.4×.

Question 5

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

Accepted Answer

ServiceNow's P/E ratio of 59.3× is below its own 5-year average of 223.6× and above the sector median of 29.4×. That places the current reading at the 3th 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/E ratio range?

Accepted Answer

In the available daily series, ServiceNow (NOW) P/E ratio has ranged from a low of 49.7× in 2026 to a high of 18722.6× in 2019. The 5-year average is 223.6× and the 5-year median is 138.0×.

Question 7

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

Accepted Answer

ServiceNow (NOW) P/E ratio at the end of 2025 was 91.1×. Annual values reflect the multiple on the last trading day of each calendar year, using the trailing twelve-month earnings figure available at that date.

Question 8

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

Accepted Answer

Valuation multiples move with two inputs: the numerator (market capitalisation, which tracks the share price) and the denominator (earnings). 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	$1.75B	91.1×	-62.1×	Dec 31, 2025
2024	$218B	$1.43B	153.1×	+69.5×	Dec 31, 2024
2023	$145B	$1.73B	83.7×	-158.8×	Dec 31, 2023
2022	$78.8B	$325M	242.5×	-319.1×	Dec 31, 2022
2021	$129B	$230M	561.6×	-345.2×	Dec 31, 2021
2020	$108B	$119M	906.8×	+821.7×	Dec 31, 2020
2019	$53.4B	$627M	85.2×	—	Dec 31, 2019
2018	$32B	-$26.7M	—	—	Dec 31, 2018
2017	$22B	-$149M	—	—	Dec 31, 2017
2016	$12.4B	-$452M	—	—	Dec 31, 2016
2015	$13.8B	-$198M	—	—	Dec 31, 2015
2014	$10.1B	-$179M	—	—	Dec 31, 2014
2013	$7.81B	-$73.7M	—	—	Dec 31, 2013
2012	$3.73B	-$37.3M	—	—	Dec 31, 2012
2011	$2.62B	$916K	2861.7×	—	Dec 31, 2011


Dell Technologies (DELL)	16.2×
Western Digital (WDC)	15.7×
Accenture (ACN)	15.4×
Gartner (IT)	14.9×
CDW (CDW)	14.5×
Adobe (ADBE)	14.4×
Leidos Holdings (LDOS)	14.1×
Zoom Communications (ZM)	13.8×
QUALCOMM (QCOM)	13.7×
PTC (PTC)	13.5×
Paycom Software (PAYC)	13.2×
Elastic N.V. (ESTC)	13.2×
Cognizant (CTSH)	13.1×
First Solar (FSLR)	12.7×
GoDaddy (GDDY)	12.7×
Gen Digital (GEN)	11.7×
Duolingo (DUOL)	10.9×
Super Micro Computer (SMCI)	10.9×
Science Applications International (SAIC)	10.3×
Fiserv (FISV)	9.3×
Fidelity National Information Services (FIS)	9.0×
HP (HPQ)	7.5×
Sunrun (RUN)	5.6×
Lyft (LYFT)	1.8×
IBM (IBM)	0.0×

P/E Ratio for ServiceNow (NOW) 2011-2026

P/E Ratio daily chart for ServiceNow (NOW)

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

About P/E Ratio at ServiceNow (NOW)

ServiceNow P/E Ratio by Year

ServiceNow P/E Ratio 2025: 91.1×

ServiceNow P/E Ratio 2024: 153.1×

ServiceNow P/E Ratio 2023: 83.7×

ServiceNow P/E Ratio 2022: 242.5×

ServiceNow P/E Ratio 2021: 561.6×

Sector peers by P/E Ratio — chart

Sector peers by P/E Ratio — table

Frequently asked questions

ServiceNow (NOW) Key Financials