Is ServiceNow, Inc. (NOW) Undervalued?
Based on the current stock price of $153.89 and a P/E ratio of 93.27,ServiceNow, Inc. has a PEG ratio of 3.75.
The Short Answer:
Most analysts consider a PEG ratio below 1.0 to be undervalued. With a ratio of 3.75, NOW appears to be potentially overvalued relative to its growth rate of 24.88%.
Based on a PEG ratio of 3.75 (adjusted for dividends).
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How we analyzed NOW
We calculated the PEG (Price/Earnings-to-Growth) ratio by taking the Price-to-Earnings Ratio of 93.27and dividing it by the annual growth rate of 24.88%.
PEG = 93.27 (P/E) ÷ 24.88 (Growth) = 3.75
Frequently Asked Questions about NOW
What is the current PEG Ratio for ServiceNow, Inc. (NOW)?+
The current PEG Ratio for ServiceNow, Inc. is 3.75. A PEG ratio below 1.0 generally suggests the stock may be undervalued relative to its growth.
Is NOW stock undervalued right now?+
Based on the PEG ratio of 3.75, ServiceNow, Inc. appears to be potentially overvalued. Investors typically look for a PEG ratio below 1.0 to find undervalued growth stocks.
What is the PEGY Ratio for NOW?+
The PEGY ratio for ServiceNow, Inc. is 3.75. This metric accounts for dividend yield (0.00%), providing a more complete valuation picture.