ServiceNowXSWX:NOW 79 Debt-to-EBITDA is 0.65 as of Mar. 2026, which is 78% below its 10-year median of 2.93. GuruFocus rates XSWX:NOW with a GF Score™ of 79/100 and a GF Value™ of CHF184.17. The stock has 3 warning signs investors should review. Among 1,704 Software companies, ServiceNow ranks better than 58.57% on this metric.
Debt-to-EBITDA measures a company's ability to pay off its debt.
A high Debt-to-EBITDA ratio generally means that a company may spend more time to paying off its debt. According to Joel Tillinghast's BIG MONEY THINKS SMALL: Biases, Blind Spots, and Smarter Investing, a ratio of Debt-to-EBITDA exceeding four is usually considered scary unless tangible assets cover the debt.
The historical rank and industry rank for ServiceNow's Debt-to-EBITDA or its related term are showing as below:
XSWX:NOW'
s Debt-to-EBITDA Range Over the Past 10 Years
Min: -1.72 Med: 2.93 Max: 22.97
Current: 0.75
During the past 13 years, the highest Debt-to-EBITDA Ratio of ServiceNow was 22.97. The lowest was -1.72. And the median was 2.93.
XSWX:NOW's Debt-to-EBITDA is ranked better than 58.57% of 1704
companies
in the Software industry
Industry Median: 1.1
vs XSWX:NOW: 0.75
A high Debt-to-EBITDA ratio generally means that a company may spend more time to paying off its debt.
According to Joel Tillinghast's BIG MONEY THINKS SMALL: Biases, Blind Spots, and Smarter Investing, a ratio of Debt-to-EBITDA exceeding four is usually considered scary unless tangible assets cover the debt.
ServiceNow Debt-to-EBITDA Related Terms
ServiceNow Debt-to-EBITDA Historical Data
* Premium members only.
The historical data trend for ServiceNow's Debt-to-EBITDA can be seen below:
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
For the Software - Application subindustry, ServiceNow's Debt-to-EBITDA, along with its competitors' market caps and Debt-to-EBITDA data, can be viewed below:
* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.
ServiceNow Debt-to-EBITDA vs Software Industry
For the Software industry and Technology sector, ServiceNow's Debt-to-EBITDA distribution charts can be found below:
* The bar in red indicates where ServiceNow's Debt-to-EBITDA falls into.
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
In the calculation of annual Debt-to-EBITDA, the EBITDA of the last fiscal year is used. In calculating the annualized quarterly data,
the EBITDA data used here is four times the quarterly (Mar. 2026) EBITDA data.
ServiceNow (XSWX:NOW) has a Debt-to-EBITDA of 0.65 as of Mar. 2026. Debt-to-EBITDA ratio represents the ratio of total debt to total earnings before interest, taxes, depreciation and amortization. View historical data on ServiceNow. This is 78% below median its historical median of 2.93. According to the industry distribution chart, ServiceNow ranks #706 out of 1704 companies in the Software industry, placing it in the top 41.4%.
Is ServiceNow's Debt-to-EBITDA too high?
ServiceNow's current Debt-to-EBITDA of 0.65 is 78% below median its 10-year median of 2.93. The Software industry median Debt-to-EBITDA is 1.10. ServiceNow's value of 0.65 is 40.9% below this industry median. Based on the distribution chart, ServiceNow ranks #706 out of 1704 companies in the Software industry, which is above the industry midpoint. Overall, ServiceNow has a GF Score™ of 79/100, reflecting its overall financial health beyond just this single metric.
How does ServiceNow's Debt-to-EBITDA compare to ?
According to the Software industry distribution chart, ServiceNow ranks #706 out of 1704 companies for Debt-to-EBITDA. This puts ServiceNow in the upper half of its industry. The industry median Debt-to-EBITDA is 1.10. ServiceNow's value of 0.65 is 40.9% below this benchmark. While the company's 10-year median is 2.93 vs. the industry median of 1.10, ServiceNow has consistently been below the industry average. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Debt-to-EBITDA for a Software company?
The median Debt-to-EBITDA among Software companies is 1.10, based on 1,704 companies in the industry. Companies in the top quartile (top 25%) have a Debt-to-EBITDA significantly above this median, while those in the bottom quartile fall well below. However, Debt-to-EBITDA should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. ServiceNow's current Debt-to-EBITDA of 0.65 is 40.9% below the industry median. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high Debt-to-EBITDA mean?
A high Debt-to-EBITDA can signal that a stock is expensive relative to its fundamentals. Debt-to-EBITDA ratio represents the ratio of total debt to total earnings before interest, taxes, depreciation and amortization. View historical data on ServiceNow. For the Software industry, the median Debt-to-EBITDA is 1.10 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. ServiceNow's current Debt-to-EBITDA is 0.65, which is 78% below median its own 10-year median of 2.93. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is ServiceNow stock overvalued right now?
ServiceNow (XSWX:NOW) has a current Debt-to-EBITDA of 0.65. The stock's GF Value™ is CHF184.17, compared to a current price of CHF85.07 — trading 53.8% below its estimated fair value. The current Debt-to-EBITDA is 0.65, which is 78% below median its 10-year median of 2.93 and 40.9% below the Software industry median of 1.10. ServiceNow's overall GF Score™ is 79/100 with 3 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Debt-to-EBITDA calculated?
Debt-to-EBITDA is calculated from a company's financial statements. For ServiceNow (XSWX:NOW), the current Debt-to-EBITDA is 0.65 as of Mar. 2026. GuruFocus calculates this using data sourced from SEC filings and annual reports. See the calculation section and 30-year financial data on this page for the full breakdown.
Is ServiceNow (XSWX:NOW) Overvalued in 2026?
Based on GuruFocus' analysis, ServiceNow stock appears to be undervalued.
The current stock price of CHF85.07 is trading 53.8% below its estimated GF Value™ of CHF184.17.
Key valuation signals for XSWX:NOW:
Debt-to-EBITDA: 0.65 (78% below median its 10-year median of 2.93)
GF Value™: CHF184.17 vs. price of CHF85.07 (53.8% below fair value)
Industry Position: 40.9% below the Software median (#706 of 1704)
No single metric tells the full story. See the XSWX:NOW stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
ServiceNow Inc provides software solutions to structure and automate various business processes via a SaaS delivery model. The company primarily focuses on the IT function for enterprise customers. ServiceNow began with IT service management, expanded within the IT function, and more recently directed its workflow automation logic to functional areas beyond IT, notably customer service, HR service delivery, and security operations. ServiceNow also offers an application development platform as a service.
79GF Score
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