ServiceNowXSWX:NOW 79 EV-to-EBITDA is 26.72 as of Jul. 03, 2026, which is 81% below its 10-year median of 142.53. 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 1,939 Software companies, ServiceNow ranks worse than 81.23% on this metric.
EV-to-EBITDA is calculated as enterprise value divided by its EBITDA. As of today, ServiceNow's enterprise value is CHF86,506.94 Mil.
ServiceNow's EBITDA for the trailing twelve months (TTM) ended in Mar. 2026 was CHF3,238.00 Mil. Therefore, ServiceNow's EV-to-EBITDA for today is 26.72.
The historical rank and industry rank for ServiceNow's EV-to-EBITDA or its related term are showing as below:
XSWX:NOW'
s EV-to-EBITDA Range Over the Past 10 Years
Min: -50.97 Med: 142.53 Max: 831.73
Current: 33.01
During the past 13 years, the highest EV-to-EBITDA of ServiceNow was 831.73. The lowest was -50.97. And the median was 142.53.
XSWX:NOW's EV-to-EBITDA is ranked worse than 81.23% of 1939
companies
in the Software industry
Industry Median: 10.45
vs XSWX:NOW: 33.01
EV-to-EBITDA is a valuation multiple used in finance and investment to measure the value of a company. This important multiple is often used in conjunction with, or as an alternative to, the PE Ratio to determine the fair market value of a company.
The "classic" EV-to-EBITDA is much better in capturing debt and net cash than the PE Ratio (TTM).
ServiceNow (XSWX:NOW) EV-to-EBITDA Explanation
EV-to-EBITDA is a valuation multiple used in finance and investment to measure the value of a company. This important multiple is often used in conjunction with, or as an alternative to, the PE Ratio (TTM) to determine the fair market value of a company.
ServiceNow's share price for today is CHF85.07.
ServiceNow's Earnings per Share (Diluted) for the trailing twelve months (TTM) ended in Mar. 2026 adds up the quarterly data reported by the company within the most recent 12 months, which was CHF0.000.
* 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.
Study has found that the companies with the lowest EV-to-EBITDA outperforms companies measured as cheap by other ratios such as PE Ratio (TTM).
The historical data trend for ServiceNow's EV-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 EV-to-EBITDA, along with its competitors' market caps and EV-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 EV-to-EBITDA vs Software Industry
For the Software industry and Technology sector, ServiceNow's EV-to-EBITDA distribution charts can be found below:
* The bar in red indicates where ServiceNow's EV-to-EBITDA falls into.
ServiceNow's current Enterprise Value is CHF86,506.94 Mil.
ServiceNow's EBITDA for the trailing twelve months (TTM) ended in Mar. 2026 adds up the quarterly data reported by the company within the most recent 12 months, which was CHF3,238.00 Mil.
* 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.
ServiceNow (XSWX:NOW) has a EV-to-EBITDA of 26.72 as of Jul. 03, 2026. EV to EBITDA ratio is the company's enterprise value divided by earnings before interest, taxes, depreciation and amortization. View historical data on ServiceNow. This is 81% below median its historical median of 142.53. According to the industry distribution chart, ServiceNow ranks #1575 out of 1939 companies in the Software industry, placing it in the top 81.2%.
Is ServiceNow's EV-to-EBITDA too high?
ServiceNow's current EV-to-EBITDA of 26.72 is 81% below median its 10-year median of 142.53. The Software industry median EV-to-EBITDA is 10.45. ServiceNow's value of 26.72 is 155.7% above this industry median. Based on the distribution chart, ServiceNow ranks #1575 out of 1939 companies in the Software industry, which is in the bottom quartile relative to peers. Overall, ServiceNow has a GF Score™ of 79/100, reflecting its overall financial health beyond just this single metric.
How does ServiceNow's EV-to-EBITDA compare to ?
According to the Software industry distribution chart, ServiceNow ranks #1575 out of 1939 companies for EV-to-EBITDA. This places ServiceNow in the lower half of its industry. The industry median EV-to-EBITDA is 10.45. ServiceNow's value of 26.72 is 155.7% above this benchmark. While the company's 10-year median is 142.53 vs. the industry median of 10.45, ServiceNow has consistently been above 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 EV-to-EBITDA for a Software company?
The median EV-to-EBITDA among Software companies is 10.45, based on 1,939 companies in the industry. Companies in the top quartile (top 25%) have a EV-to-EBITDA significantly above this median, while those in the bottom quartile fall well below. However, EV-to-EBITDA should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. ServiceNow's current EV-to-EBITDA of 26.72 is 155.7% above 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 EV-to-EBITDA mean?
A high EV-to-EBITDA can signal that a stock is expensive relative to its fundamentals. EV to EBITDA ratio is the company's enterprise value divided by earnings before interest, taxes, depreciation and amortization. View historical data on ServiceNow. For the Software industry, the median EV-to-EBITDA is 10.45 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. ServiceNow's current EV-to-EBITDA is 26.72, which is 81% below median its own 10-year median of 142.53. 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 EV-to-EBITDA of 26.72. 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 EV-to-EBITDA is 26.72, which is 81% below median its 10-year median of 142.53 and 155.7% above the Software industry median of 10.45. 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 EV-to-EBITDA calculated?
EV-to-EBITDA is calculated from a company's financial statements. For ServiceNow (XSWX:NOW), the current EV-to-EBITDA is 26.72 as of Jul. 03, 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:
EV-to-EBITDA: 26.72 (81% below median its 10-year median of 142.53)
GF Value™: CHF184.17 vs. price of CHF85.07 (53.8% below fair value)
Industry Position: 155.7% above the Software median (#1575 of 1939)
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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EV-to-EBITDA is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.
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