ServiceNow EBITDA vs. Net Income
| NOW Stock | USD 106.48 2.61 2.51% |
EBITDA | First Reported 2010-12-31 | Previous Quarter 3 B | Current Value 3.1 B | Quarterly Volatility 1.1 B |
| Current Value | Last Year | Change From Last Year | 10 Year Trend | ||||||
|---|---|---|---|---|---|---|---|---|---|
| Gross Profit Margin | 0.55 | 0.7753 |
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For ServiceNow profitability analysis, we use financial ratios and fundamental drivers that measure the ability of ServiceNow to generate income relative to revenue, assets, operating costs, and current equity. These fundamental indicators attest to how well ServiceNow utilizes its assets to generate profit and value for its shareholders. The profitability module also shows relationships between ServiceNow's most relevant fundamental drivers. It provides multiple suggestions of what could affect the performance of ServiceNow over time as well as its relative position and ranking within its peers.
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ServiceNow's Revenue Breakdown by Earning Segment
Check out Correlation Analysis.
ServiceNow Revenue Breakdown by Earning Segment
By analyzing ServiceNow's earnings estimates, investors can diagnose different trends across ServiceNow's analyst sentiment over time as well as compare current estimates against different timeframes.
What growth prospects exist in Systems Software sector? Can ServiceNow capture new markets? Factors like these will boost the valuation of ServiceNow. Anticipated expansion of ServiceNow directly elevates investor willingness to pay premium valuations. Valuation analysis balances hard financial data with qualitative growth assessments. While each ServiceNow valuation metric matters, prioritizing which indicators carry greater predictive weight remains essential.
Quarterly Earnings Growth 0.034 | Earnings Share 1.67 | Revenue Per Share | Quarterly Revenue Growth 0.207 | Return On Assets |
Investors evaluate ServiceNow using market value (trading price) and book value (balance sheet equity), each telling a different story. Calculating ServiceNow's intrinsic value - the estimated true worth - helps identify when the stock trades at a discount or premium to fair value. Investment professionals apply varied valuation frameworks to compute inherent worth and acquire positions when market prices trade at discounts to calculated value. External factors like market trends, sector rotation, and investor psychology can cause ServiceNow's market price to deviate significantly from intrinsic value.
It's important to distinguish between ServiceNow's intrinsic value and market price, which are calculated using different methodologies. Investment decisions regarding ServiceNow should consider multiple factors including financial performance, growth metrics, competitive position, and professional analysis. Conversely, ServiceNow's market price signifies the transaction level at which participants voluntarily complete trades.
ServiceNow Net Income vs. EBITDA Fundamental Analysis
Comparative valuation techniques use various fundamental indicators to help in determining ServiceNow's current stock value. Our valuation model uses many indicators to compare ServiceNow value to that of its competitors to determine the firm's financial worth. ServiceNow is regarded fifth in ebitda category among its peers. It also is regarded fifth in net income category among its peers making up about 0.58 of Net Income per EBITDA. The ratio of EBITDA to Net Income for ServiceNow is roughly 1.72 . At this time, ServiceNow's EBITDA is fairly stable compared to the past year. Comparative valuation analysis is a catch-all technique that is used if you cannot value ServiceNow by discounting back its dividends or cash flows. It compares the stock's price multiples to nearest competition to determine if the stock is relatively undervalued or overvalued.ServiceNow Net Income vs. EBITDA
EBITDA stands for earnings before interest, taxes, depreciation, and amortization. It is a measure of a company operating cash flow based on data from the company income statement and is a very good way to compare companies within industries or across different sectors. However, unlike Operating Cash Flow, EBITDA does not include the effects of changes in working capital.
ServiceNow |
| = | 3 B |
In a nutshell, EBITDA is calculated by adding back each of the excluded items to the post-tax profit, and can be used to compare companies with very different capital structures.
Net income is the profit of a company for the reporting period, which is derived after taking revenues and gains and subtracting all expenses and losses. Net income is one of the most-watched numbers by money managers as well as individual investors.
ServiceNow |
| = | 1.75 B |
Because income is reported on the Income Statement of a company and is measured in dollars some investors prefer to use Profit Margin, which measures income as a percentage of sales.
ServiceNow Net Income Comparison
ServiceNow is currently under evaluation in net income category among its peers.
ServiceNow Profitability Projections
The most important aspect of a successful company is its ability to generate a profit. For investors in ServiceNow, profitability is also one of the essential criteria for including it into their portfolios because, without profit, ServiceNow will eventually generate negative long term returns. The profitability progress is the general direction of ServiceNow's change in net profit over the period of time. It can combine multiple indicators of ServiceNow, where stable trends show no significant progress. An accelerating trend is seen as positive, while a decreasing one is unfavorable. A rising trend means that profits are rising, and operational efficiency may be rising as well. A decreasing trend is a sign of poor performance and may indicate upcoming losses.
| Last Reported | Projected for Next Year | ||
| Accumulated Other Comprehensive Income | 19 M | 19.9 M | |
| Operating Income | 1.8 B | 1.9 B | |
| Income Before Tax | 2.3 B | 2.4 B | |
| Total Other Income Expense Net | 437 M | 458.9 M | |
| Net Income | 1.7 B | 1.8 B | |
| Income Tax Expense | 513 M | 538.6 M | |
| Net Income Applicable To Common Shares | 1.7 B | 1.8 B | |
| Net Income From Continuing Ops | 1.7 B | 1.8 B | |
| Non Operating Income Net Other | 23 M | 12.1 M | |
| Interest Income | 451 M | 473.6 M | |
| Net Interest Income | 428 M | 449.4 M | |
| Change To Netincome | 1.6 B | 1.7 B | |
| Net Income Per Share | 1.69 | 1.77 | |
| Income Quality | 3.11 | 3.27 | |
| Net Income Per E B T | 0.77 | 1.17 |
ServiceNow Profitability Driver Comparison
Profitability drivers are factors that can directly affect your investment outlook on ServiceNow. Investors often realize that things won't turn out the way they predict. There are maybe way too many unforeseen events and contingencies during the holding period of ServiceNow position where the market behavior may be hard to predict, tax policy changes, gold or oil price hikes, calamities change, and many others. The question is, are you prepared for these unexpected events? Although some of these situations are obviously beyond your control, you can still follow the important profit indicators to know where you should focus on when things like this occur. Below are some of the ServiceNow's important profitability drivers and their relationship over time.
ServiceNow Earnings per Share Projection vs Actual
Use ServiceNow in pair-trading
One of the main advantages of trading using pair correlations is that every trade hedges away some risk. Because there are two separate transactions required, even if ServiceNow position performs unexpectedly, the other equity can make up some of the losses. Pair trading also minimizes risk from directional movements in the market. For example, if an entire industry or sector drops because of unexpected headlines, the short position in ServiceNow will appreciate offsetting losses from the drop in the long position's value.ServiceNow Pair Trading
ServiceNow Pair Trading Analysis
The ability to find closely correlated positions to ServiceNow could be a great tool in your tax-loss harvesting strategies, allowing investors a quick way to find a similar-enough asset to replace ServiceNow when you sell it. If you don't do this, your portfolio allocation will be skewed against your target asset allocation. So, investors can't just sell and buy back ServiceNow - that would be a violation of the tax code under the "wash sale" rule, and this is why you need to find a similar enough asset and use the proceeds from selling ServiceNow to buy it.
The correlation of ServiceNow is a statistical measure of how it moves in relation to other instruments. This measure is expressed in what is known as the correlation coefficient, which ranges between -1 and +1. A perfect positive correlation (i.e., a correlation coefficient of +1) implies that as ServiceNow moves, either up or down, the other security will move in the same direction. Alternatively, perfect negative correlation means that if ServiceNow moves in either direction, the perfectly negatively correlated security will move in the opposite direction. If the correlation is 0, the equities are not correlated; they are entirely random. A correlation greater than 0.8 is generally described as strong, whereas a correlation less than 0.5 is generally considered weak.
Correlation analysis and pair trading evaluation for ServiceNow can also be used as hedging techniques within a particular sector or industry or even over random equities to generate a better risk-adjusted return on your portfolios.Use Investing Themes to Complement your ServiceNow position
In addition to having ServiceNow in your portfolios, you can quickly add positions using our predefined set of ideas and optimize them against your very unique investing style. A single investing idea is a collection of funds, stocks, ETFs, or cryptocurrencies that are programmatically selected from a pull of investment themes. After you determine your investment opportunity, you can then find an optimal portfolio that will maximize potential returns on the chosen idea or minimize its exposure to market volatility.Did You Try This Idea?
Run Consumer Discretionary ETFs Thematic Idea Now
Consumer Discretionary ETFs
ETF themes focus on helping investors to gain exposure to a broad range of assets, diversify, and lower overall costs. The Consumer Discretionary ETFs theme has 32 constituents at this time.
You can either use a buy-and-hold strategy to lock in the entire theme or actively trade it to take advantage of the short-term price volatility of individual constituents. Macroaxis can help you discover thousands of investment opportunities in different asset classes. In addition, you can partner with us for reliable portfolio optimization as you plan to utilize Consumer Discretionary ETFs Theme or any other thematic opportunities.
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Additional Tools for ServiceNow Stock Analysis
When running ServiceNow's price analysis, check to measure ServiceNow's market volatility, profitability, liquidity, solvency, efficiency, growth potential, financial leverage, and other vital indicators. We have many different tools that can be utilized to determine how healthy ServiceNow is operating at the current time. Most of ServiceNow's value examination focuses on studying past and present price action to predict the probability of ServiceNow's future price movements. You can analyze the entity against its peers and the financial market as a whole to determine factors that move ServiceNow's price. Additionally, you may evaluate how the addition of ServiceNow to your portfolios can decrease your overall portfolio volatility.