The Trust Layer for Market Analysts

The analysis centers on ServiceNow (NOW) using a discounted cash flow model. Key inputs include projected free cash flows for 2024-2036, ranging from $3.68 billion to $20.18 billion, and a terminal value of $255.77 billion. The company's value of operations is estimated at $213.75 billion, with debt at $1.5 billion and equity at $0.956 billion. The calculation incorporates a cost of debt of 5.75%, a capital asset pricing model (CAPM) beta of 1.15, a risk-free rate of 1.10%, and a market risk premium of 0.060. The discount rate (WACC) is determined to be 11.112%. Based on these inputs, the intrinsic value per share is calculated to be $156.54. Given the current market price of $101.72, the stock is considered undervalued. The analysis also notes that a higher beta would decrease the intrinsic value, implying a risk-adjusted valuation. The current beta is stated as 0.82, but adjusted to 1.15 for risk assessment.