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ServiceNow (MEX:NOWW) E10 : MXN34.39 (As of Dec. 2024)


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What is ServiceNow E10?

E10 is a concept invented by Prof. Robert Shiller, who uses E10 for his Shiller P/E calculation. E10 is the average of the inflation adjusted earnings of a company over the past 10 years.

ServiceNow's adjusted earnings per share data for the three months ended in Dec. 2024 was MXN38.166. Add all the adjusted EPS for the past 10 years together and divide 10 will get our e10, which is MXN34.39 for the trailing ten years ended in Dec. 2024.

During the past 12 months, ServiceNow's average E10 Growth Rate was 111.40% per year. Please click Growth Rate Calculation Example (GuruFocus) to see how GuruFocus calculates Wal-Mart Stores Inc (WMT)'s revenue growth rate. You can apply the same method to get the E10 growth rate using E10 data.

As of today (2025-03-28), ServiceNow's current stock price is MXN17305.00. ServiceNow's E10 for the quarter that ended in Dec. 2024 was MXN34.39. ServiceNow's Shiller PE Ratio of today is 503.20.

During the past 13 years, the highest Shiller PE Ratio of ServiceNow was 1200.14. The lowest was 495.66. And the median was 755.73.


ServiceNow E10 Historical Data

The historical data trend for ServiceNow's E10 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.

* Premium members only.

ServiceNow E10 Chart

ServiceNow Annual Data
Trend Dec15 Dec16 Dec17 Dec18 Dec19 Dec20 Dec21 Dec22 Dec23 Dec24
E10
Get a 7-Day Free Trial Premium Member Only Premium Member Only -11.37 -7.18 -2.27 13.45 34.39

ServiceNow Quarterly Data
Mar20 Jun20 Sep20 Dec20 Mar21 Jun21 Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23 Sep23 Dec23 Mar24 Jun24 Sep24 Dec24
E10 Get a 7-Day Free Trial Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 13.45 16.87 20.44 28.12 34.39

Competitive Comparison of ServiceNow's E10

For the Software - Application subindustry, ServiceNow's Shiller PE Ratio, along with its competitors' market caps and Shiller PE Ratio 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's Shiller PE Ratio Distribution in the Software Industry

For the Software industry and Technology sector, ServiceNow's Shiller PE Ratio distribution charts can be found below:

* The bar in red indicates where ServiceNow's Shiller PE Ratio falls into.


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ServiceNow E10 Calculation

E10 is a concept invented by Prof. Robert Shiller, who uses E10 for his Shiller P/E calculation. When we calculate the today's Shiller P/E ratio of a stock, we use today's price divided by E10.

What is E10? How do we calculate E10?

E10 is the average of the inflation adjusted earnings of a company over the past 10 years. Let's use an example to explain.

If we want to calculate the E10 of Wal-Mart (WMT) for Dec. 31, 2010, we need to have the inflation data and the earnings from 2001 through 2010.

We adjusted the earnings of 2001 earnings data with the total inflation from 2001 through 2010 to the equivalent earnings in 2010. If the total inflation from 2001 to 2010 is 40%, and Wal-Mart earned $1 a share in 2001, then the 2001's equivalent earnings in 2010 is $1.4 a share. If Wal-Mart earns $1 again in 2002, and the total inflation from 2002 through 2010 is 35%, then the equivalent 2002 earnings in 2010 is $1.35. So on and so forth, you get the equivalent earnings of past 10 years. Then you add them together and divided the sum by 10 to get E10.

Please note that we use the CPI data of the country/region where the company is headquartered. If the CPI data for that country/region is not available, then we will use the CPI data of the United States as default.

For example, ServiceNow's adjusted earnings per share data for the three months ended in Dec. 2024 was:

Adj_EPS= Earnings per Share (Diluted) /CPI of Dec. 2024 (Change)*Current CPI (Dec. 2024)
=38.166/133.1571*133.1571
=38.166

Current CPI (Dec. 2024) = 133.1571.

ServiceNow Quarterly Data

per share eps CPI Adj_EPS
201503 -5.793 99.621 -7.743
201506 -6.276 100.684 -8.300
201509 -4.393 100.392 -5.827
201512 -3.955 99.792 -5.277
201603 -35.461 100.470 -46.998
201606 -5.548 101.688 -7.265
201609 -4.254 101.861 -5.561
201612 -4.123 101.863 -5.390
201703 -2.448 102.862 -3.169
201706 -5.965 103.349 -7.685
201709 -2.359 104.136 -3.016
201712 -3.142 104.011 -4.022
201803 1.090 105.290 1.378
201806 -5.895 106.317 -7.383
201809 0.748 106.507 0.935
201812 0.785 105.998 0.986
201903 -0.194 107.251 -0.241
201906 -1.153 108.070 -1.421
201909 4.146 108.329 5.096
201912 57.146 108.420 70.184
202003 5.628 108.902 6.882
202006 4.616 108.767 5.651
202009 1.325 109.815 1.607
202012 1.591 109.897 1.928
202103 8.381 111.754 9.986
202106 5.773 114.631 6.706
202109 6.374 115.734 7.334
202112 2.667 117.630 3.019
202203 7.367 121.301 8.087
202206 2.012 125.017 2.143
202209 7.845 125.227 8.342
202212 14.427 125.222 15.341
202303 13.158 127.348 13.758
202306 87.091 128.729 90.087
202309 20.380 129.860 20.898
202312 24.273 129.419 24.974
202403 27.716 131.776 28.006
202406 23.083 132.554 23.188
202409 40.759 133.029 40.798
202412 38.166 133.157 38.166

Add all the adjusted EPS together and divide 10 will get our e10.


ServiceNow  (MEX:NOWW) E10 Explanation

If a company grows much fast than inflation, E10 may underestimate the company's earnings power. Shiller PE Ratio can seem to be too high even the actual P/E is low.

For the Shiller P/E, the earnings of the past 10 years are inflation-adjusted and averaged. The result is used for P/E calculation. Since it looks at the average over the last 10 years, the Shiller P/E is also called PE10.

The Shiller P/E was first used by professor Robert Shiller to measure the valuation of the overall market. The same calculation is applied here to individual companies.

ServiceNow's Shiller P/E Ratio of today is calculated as

Shiller PE Ratio=Share Price/E10
=17305.00/34.39
=503.20

* 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.

During the past 13 years, the highest Shiller P/E Ratio of ServiceNow was 1200.14. The lowest was 495.66. And the median was 755.73.


Be Aware

Shiller PE Ratio works better for cyclical companies. It gives you a better idea on the company's real earnings power.


ServiceNow E10 Related Terms

Thank you for viewing the detailed overview of ServiceNow's E10 provided by GuruFocus.com. Please click on the following links to see related term pages.


ServiceNow Business Description

Address
2225 Lawson Lane, Santa Clara, CA, USA, 95054
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.

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