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Analyzing the Price-to-Earnings Ratio of ServiceNow Inc. (NOW)

The price-to-earnings ratio for ServiceNow Inc. (NYSE: NOW) is above average at 256.14x. The 36-month beta value for NOW is also noteworthy at 1.02.

The average price estimated by analysts for NOW is $542.62, which is $12.72 above than the current price. The public float for NOW is 201.37M, and at present, short sellers hold a 1.86% of that float. The average trading volume of NOW on May 25, 2023 was 1.56M shares.

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NOW) stock’s latest price update

The stock of ServiceNow Inc. (NYSE: NOW) has increased by 5.38 when compared to last closing price of 502.55.Despite this, the company has seen a gain of 3.81% in its stock price over the last five trading days. Barron’s reported on 01/26/23 that ServiceNow Earnings Beat Street Estimates

NOW’s Market Performance

ServiceNow Inc. (NOW) has experienced a 3.81% rise in stock performance for the past week, with a 16.65% rise in the past month, and a 24.44% rise in the past quarter. The volatility ratio for the week is 2.43%, and the volatility levels for the past 30 days are at 2.76% for NOW. The simple moving average for the past 20 days is 13.76% for NOW’s stock, with a 23.49% simple moving average for the past 200 days.

NOW Trading at 15.22% from the 50-Day Moving Average

After a stumble in the market that brought NOW to its low price for the period of the last 52 weeks, the company was able to rebound, for now settling with 1.54% of gains for the given period.

Volatility was left at 2.76%, however, over the last 30 days, the volatility rate increased by 2.43%, as shares surge +15.52% for the moving average over the last 20 days. Over the last 50 days, in opposition, the stock is trading +24.30% upper at present.

During the last 5 trading sessions, NOW rose by +2.88%, which changed the moving average for the period of 200-days by +7.67% in comparison to the 20-day moving average, which settled at $469.10. In addition, ServiceNow Inc. saw 36.40% in overturn over a single year, with a tendency to cut further gains.

Insider Trading

Reports are indicating that there were more than several insider trading activities at NOW starting from Caimi Lara, who sale 267 shares at the price of $513.77 back on May 22. After this action, Caimi Lara now owns 98 shares of ServiceNow Inc., valued at $137,177 using the latest closing price.

Mastantuono Gina, the Chief Financial Officer of ServiceNow Inc., sale 4,278 shares at $500.00 during a trade that took place back on May 18, which means that Mastantuono Gina is holding 8,734 shares at $2,139,000 based on the most recent closing price.

Stock Fundamentals for NOW

Current profitability levels for the company are sitting at:

  • +4.90 for the present operating margin
  • +78.29 for the gross margin

The net margin for ServiceNow Inc. stands at +4.49. The total capital return value is set at 5.39, while invested capital returns managed to touch 5.04. Equity return is now at value 8.30, with 3.30 for asset returns.

Based on ServiceNow Inc. (NOW), the company’s capital structure generated 44.36 points at debt to equity in total, while total debt to capital is 30.73. Total debt to assets is 16.78, with long-term debt to equity ratio resting at 42.45. Finally, the long-term debt to capital ratio is 29.41.

When we switch over and look at the enterprise to sales, we see a ratio of 13.10, with the company’s debt to enterprise value settled at 0.03. The receivables turnover for the company is 4.65 and the total asset turnover is 0.60. The liquidity ratio also appears to be rather interesting for investors as it stands at 1.05.

Conclusion

In summary, ServiceNow Inc. (NOW) has had a better performance as of late. Analysts have mixed opinions on the stock, with some viewing it as a “buy” and others as a “hold”. It is worth mentioning that the stock is currently trading in close proximity to its 50-day moving average and its 52-week high.